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Pensions Board Crack Down on PRSA Access
Business World
September 2, 2004
The Pensions Board is to issue 64,000 letters to employers who have failed in their responsibilities to give workers access to Personal Retirement Savings Accounts (PRSAs).
The Board also said it is proceeding with prosecutions against six employers for non-compliance with pension regulations.
The letters will go to employers who do not have an Occupational Pension Scheme registered with the Pensions Board or who appear to have failed to sign up with a PRSA Provider to ensure their staff have access to a Standard
PRSA.
A key area of concern for the Pensions Board is among small employers particularly in the services, hospitality, retail and farming sectors where there is a higher proportion of part-time and seasonal employees with little or no tradition of pension provision.
The employers questioned have been requested to complete and return the straight forward questionnaire consisting of five questions, which demonstrates their compliance with the law or to clarify their position. Setting a deadline of the 30th September 2004 for response to its statutory enquiry, the Board warns employers that failure to comply with their pension obligations is a criminal offence that could lead to possible significant criminal sanctions.
In addition Social Welfare Inspectors have recently been empowered to carry out checks on employers to ensure they are either providing a pension scheme for their employees or facilitating access to a PRSA.
The Pensions Board is currently at an advanced stage in the prosecution of six companies for non-compliance with the rules on PRSAs. This is the first time prosecutions have been taken by the board. The move is based on its own audits and calls from whistle-blowers to its helpline.
So far just under 35,000 people have taken out PRSAs. Around half of the workforce still have no pension coverage at all.
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