Pensions ombudsman warns building firms' non-compliance will end in court

PENSIONS OMBUDSMAN Paul Kenny said yesterday that he had lost his patience with construction firms that do not comply with his office, which he said would "not be given the run-around".

Mr Kenny was commenting on his victory in securing a court order requiring the Enniscorthy-based director of a dissolved construction firm to produce documents relating to pension contributions deducted from staff salaries.

The ombudsman is investigating a complaint that pension contributions deducted from wages by the now dissolved Joe Keane Construction Company over a three-year period were not paid into the Construction Industry Pension Scheme.

The Wexford Circuit Court has awarded costs against the director, Joe Keane, who now has 21 days to furnish Mr Kenny's office with the documents. The ombudsman has also initiated criminal proceedings against Mr Keane in the Wexford District Court for failing to comply with his initial request for information.

The case is the latest in a series of actions taken against construction firms accused of illegally failing to remit pension contributions taken from staff. Mr Kenny said a similar court order secured against the Galway-based firm 3D Restoration and Construction in April marked "a tougher new stance by my office".

Under the Pensions (Amendment) Act 1990, the ombudsman has the right to oblige employers to give him employment records and other documents relating to the operation of pension schemes.

"There comes a time when it has to be made abundantly clear that non-compliance will have immediate and serious legal consequences," Mr Kenny said.

Mr Kenny has described it as "shameful" that some employers in the building sector "actively set out to deprive people of a significant pension benefit".

One-third of hospitality staff do not know what their main source of income will be in retirement, the Pensions Board has said. Only 10 per cent have private pensions.