Pension action may affect all Crystal staff

A LEGAL action by 10 former Waterford Crystal workers against the state over their pension entitlements could affect the pension entitlements of all workers whose employers become insolvent.

The action arises after Waterford Crystal was placed in receivership in January 2009 and the company’s pension schemes were wound up two months later with a deficit of more than €100 million. All 10 plaintiffs ceased employment with the company on dates in 2008 and 2009, and most have now reached or are approaching the age of 65.

Given the funding levels in the pension schemes, Mercer, the administrator of the schemes, later offered each plaintiff a “transfer payment,” with the effect all will suffer reduced payments of between 18-30% — combined losses of more than €2.6m.