Social Welfare And Pensions (No. 2) Act 2013

The Act provides for both a single insolvency priority order for underfunded schemes where the employer is solvent at the date of wind-up and a double insolvency priority order for underfunded schemes where the employer is insolvent at the date of wind-up.  It should be noted that for a scheme with a number of participating employers, all of the employers must be insolvent for the double insolvency priority order to apply.

Single insolvency priority order

The single insolvency priority order secures the entitlements of pensioners above the entitlements of active and deferred members on the winding-up of a scheme. For pensioners, the value of benefits (excluding post-retirement increases) to be secured will depend on the annual pension in payment.  Where the annual pension is: €12,000 or less, 100% of the pension will be secured; between €12,000 and €60,000, 90% of the pension will be secured; in excess of €60,000, the greater of €54,000 and 80% of the pension will