Sectoral Employment Order
On 19th October 2017 the Minister for State at the Department of Business, Enterprise and Innovation announced new legislation that makes it compulsory for construction industry employers to provide a pension and sick pay scheme for all specified workers in the industry. The legislation has immediate legal effect and all employers in the construction industry must satisfy the conditions of this new legislation. The legislation replaces the old Registered Employment Agreement, which was in place until May 2013.
This new legislation provides the construction industry with its first Sectoral Employment Order (SEO). As well as rates of pay for construction workers, the SEO recommends rates for pension, Sick Pay and Death in Service for specified construction workers aged between 18 and 65. It also recommends new rates of pay for these specified workers. The Trustee of the Construction Workers’ Pension Scheme support this legislation as it is in everyone’s interest — clients, employees and stakeholders — that workers in the industry have a good standard of living and protection for their families.
The Minister has indicated that the pension scheme for workers under the SEO should operate under particular standards and benefits for members. CWPS meets all the criteria set out by the Minister in the legal document so employers who have all their specified workers in CWPS can be assured that they fulfil their legal obligations under the SEO to have their workers covered for Death in Service and Sick Pay benefits.
CWPS is the scheme of choice for the construction industry and members of CWPS not only enjoy retirement packages as they are also covered for Death in Service and Sick Pay benefits which also satisfy the specified terms of the new SEO.
Pension Contribution Rates
The CWPS pension rates correspond to rates set out in the SEO and will remain unchanged.
Sectoral Employment Order for Employers – what does it mean for you?
Providing pension provision for employees
Employers in the construction industry are now legally obliged to implement the recommendations for all their specified workers aged between 18 and 65. Employers must register all these workers for pension, Death in Service and Sick Pay benefits in a pension scheme that meets the standards set out in the SEO.
If you are an employer who has workers who fall into the specified category of construction worker outlined in the SEO, you can be assured that when you register all these workers in CWPS they are covered for pension, death in service and sick pay benefits and you are complying with the SEO requirements for pensions and sick pay.
CWPS is the scheme of choice for the construction industry with the skill, knowledge and experience to advise and help employers, public and private, to satisfy the conditions of the new SEO legislation for pensions. CWPS is in existence for over 50 years and in 2015 was voted Best Pension Fund in Ireland.
Click HERE for information on how to join CWPS.
Extending pension cover to other employees
If you are an employer who currently has some of your construction workers registered in CWPS but have other employees who fall under the terms of this new legislation and are not registered with CWPS, under the SEO it is imperative to provide them with the same cover and high standard of benefits as other workers. CWPS will be happy to facilitate their membership application.
All you have to do is register these employees online via your employer portal or download the membership forms here and send them to us.
The new SEO has particular implications for construction companies tendering for projects. The onus is on employers to prove that your specified workers are covered under the legislation.
When construction companies tender for projects, they must satisfy the conditions of the new SEO. This requires employers to provide cover for pension, Death in Service benefit and Sick Pay benefit for all their specified workers working on each project.
If you become a member of CWPS, you can be sure that you are satisfying all your legal obligations under the new SEO in relation to pensions, Death in Service and Sick Pay benefit. We can provide you with a Letter of Compliance (LoC), which will enhance your opportunities for winning contracts for projects, both public and private.
Sectoral Employment Order for Employees – what does it mean for you?
If you are an employee who falls into the category of construction worker specified in the SEO, your employer should ensure that you are registered in CWPS so you can start saving for your retirement and also be covered for Death in Service and Sick Pay benefits.
As CWPS is an Occupational Pension Scheme, contributions will be paid by you as well as your employer so your application for membership of CWPS should always come via your employer.
Talk to your employer about becoming a member of CWPS.