In October 2017, the Minister of State at the Department of Business, Enterprise and Innovation, announced new legislation outlining rates of pay for specified workers in the construction industry, as well as pension, sick pay and death in service rates for those workers. This was the first Sectoral Employment Order (SEO) for the construction industry, the legislation is statute-based and was passed into law by the Oireachtas and had immediate effect. The SEO for the construction industry has now been followed by a SEO for the Mechanical Engineering Building Services Contracting Sector. The SEO for this sector which came into effect on 6th March 2018 also outlines rates of pay for plumbers and pipefitters as well as pension, sick pay and death in service for these workers.
In both SEOs the Minister for State has indicated that workers should be entered into a pension scheme “the terms of which, including both employer and employee contribution rates, shall be no less favourable than those set out in the Construction Workers Pension Scheme.”
Watch our videos which we hope will help explain the SEOs and what they mean to employers and employees in the Industry.
The first of our videos is aimed at employers in the construction industry.
CPAS SEO for Employers
And our second video is aimed at employees in the construction industry.
CPAS SEO for Employees
The Construction Workers Pension Scheme (CWPS) is the leading pension provider to the construction industry. CWPS is an industry-wide multi-employer pension scheme and is one of the largest pension scheme in Ireland. CWPS has the skill, knowledge and experience to advise and help employers satisfy the conditions of the new SEO legislation.
Membership of CWPS fulfils all of the pension and sick pay requirements of both SEOs. Employers who choose CWPS can be confident that their employees who are registered with the scheme, not only have a retirement plan in place but will also be looked after in the event of sickness. As well as this, a tax free lump sum of €100,000 is paid to a member’s family if the member dies while they are an active member of the scheme.
Pensions are an important recruitment and retention tool and are a tax efficient way for employers to offer benefits to attract new or retain key employees.