Construction Pension Scheme - is it any use?

[LDFerguson]

The terms of the Registered Employment Agreement for the Construction Industry relating to Pensions, Assurance and Sick Pay were registered with the Labour Court on the 7th March, 1969, under the Industrial Relations Act 1946/69. Employers working in the Construction Industry to whom this Agreement applies, whether Construction Industry Federation (CIF) members or not, are obliged to make contractual arrangements with their manual employees, for the provision of Pensions, Sick Pay and Death Benefits, and these arrangements must provide that where employees change their employments within the Industry, there shall be full transferability of benefits without loss between employers and the industry.

As I said above, in practice the only scheme that fulfils this obligation is that operated by the CIF. So it is obligatory for all construction industry employers to sign up for this scheme, whether or not they want to.

Your unwillingness to correct your erroneous statement that "The employee's pension is defined, so whether or not his/her contribution goes in should not - in theory - affect his/her pension" is frankly boring me now as it appears that your only interest is to have the last word on this thread.

So as it's late, just this once I'll let you have the last word. Off you go...

 

[MMilken]

Thanks LD, big of you to admit your mistake.

 

[Homer]

You couldn't resist, could you?

 

[RainyDay]

the utter disrespect in which the scheme is held by equally large numbers of employers and employees alike.

Can you advise how/where this disrespect has manifested itself?

 

[eileen alana]

My husband is a member of this pension scheme for the past ten years and also makes additional voluntary contributions to it. I am quite amazed at the negativity surrounding the scheme because I haven't read any bad press about it anywhere else. True, there are unscrupulous employers out there who are not complying with the scheme, however, members are kept updated on their contributions on a yearly basis and those updates will detail all contributions received. If it comes to light that employers are not complying, members can contact the Construction Industry Monitoring Agency (CIMA) (Tel - 01-8524101) who can enforce proceedings against an employer going back three years. Prior to those three years, the CIMA will recommend to members if they have any concerns regarding missed payments to contact the Pensions Ombudsman who can then proceed with the complaint.

 

[LDFerguson]

My husband is a member of this pension scheme for the past ten years and also makes additional voluntary contributions to it. I am quite amazed at the negativity surrounding the scheme because I haven't read any bad press about it anywhere else. True, there are unscrupulous employers out there who are not complying with the scheme, however, members are kept updated on their contributions on a yearly basis and those updates will detail all contributions received. If it comes to light that employers are not complying, members can contact the Construction Industry Monitoring Agency (CIMA) (Tel - 01-8524101) who can enforce proceedings against an employer going back three years. Prior to those three years, the CIMA will recommend to members if they have any concerns regarding missed payments to contact the Pensions Ombudsman who can then proceed with the complaint.

Hi Eileen,

If an employer is not making the contributions, the employees will not get the statements. Many of them won't be aware of what you outline above.

I also think that in 2008, a scheme which makes the same level of contribution for all members and offers the same benefits to all members is seriously outdated. Whether your husband earns €20,000 or €80,000, the standard contributions (ignoring his AVCs) are the same.

 

[eileen alana]

Hi Eileen,

If an employer is not making the contributions, the employees will not get the statements. Many of them won't be aware of what you outline above.

I also think that in 2008, a scheme which makes the same level of contribution for all members and offers the same benefits to all members is seriously outdated. Whether your husband earns €20,000 or €80,000, the standard contributions (ignoring his AVCs) are the same.

Hi LDFerguson,

In relation to your first point, this forum helps to create awareness among construction workers regarding their pension entitlements.
For any building worker who may be concerned that they are not registered in the scheme, the CIMA have a website where workers can check if they are enrolled in the construction pension and also to check their contribution history http://www.monagency.ie/

Your second point is your own personal opinion. Since January 2007, the REA (The Registered Employment Agreement) provides that 7% of the average Construction Industry wage is returned for weekly pension contribution. This is broken down to 4.2% employer and 2.8% worker. Thereafter, workers are free to make Additional Voluntary Contributions.

Some useful websites for anyone who may be interested
[broken link removed]

http://www.irishconstruction.com/in...spId/7DD97220-F9E9-DF8A-35C735006FA6FC9C.html

 

[LDFerguson]

Hi Eileen,

I would have no fear that anyone who is astute enough to be browsing this forum is not getting their entitlments. It's the ones who don't that I would consider to be more at risk.

Yes, these are my personal opinions, but would you not agree that a worker would benefit by having a scheme with

• employer contributions of a percentage of his actual salary, rather than a percentage of the average construction industry wage?
• flexibility for an employer to increase the employer contribution above a certain level if required?

 

[eileen alana]

Hi Eileen,

I would have no fear that anyone who is astute enough to be browsing this forum is not getting their entitlments. It's the ones who don't that I would consider to be more at risk.

Yes, these are my personal opinions, but would you not agree that a worker would benefit by having a scheme with

• employer contributions of a percentage of his actual salary, rather than a percentage of the average construction industry wage?
• flexibility for an employer to increase the employer contribution above a certain level if required?

Yes, your are right, there are many who are not aware of their entitlements and others still who don't seem interested to find out.

Yes, I think it should be a percentage of a person's salary, however, given the low uptake of private sector pensions in this country, it is better than having no pension at all and as I stated above the AVC option is there.

 

[LDFerguson]

Yes, I think it should be a percentage of a person's salary, however, given the low uptake of private sector pensions in this country, it is better than having no pension at all and as I stated above the AVC option is there.

I agree fully with you on this point. While personally I am an advocate of the "soft-compulsory" pensions-for-all option (i.e. you get automatically enrolled in a pension scheme but can opt out if you want), I certainly think that some form of pension is far better than none at all.

Regards, Liam