Compliance:
Q. What is the Registered Employment Agreement (REA)?
A. The Registered Employment Agreement (REA) is a legally binding agreement registered with the Labour Court where employers and workers, in any sector or enterprise, agree on minimum rates of pay and conditions of employment. These agreements are legally binding not only to the parties to the agreement but also those who are in the class, type or group to which the agreements are expressed to apply. There is Registered Employment Agreements in place for the Construction Industry and the Electrical Industry. The Construction Industry REA relating to pensions is officially titled the Registered Employment Agreement (Construction Industry Pensions Assurance and Sick Pay) Variation Order No. 2, 2006 as from 19 May 2006. The Electrical Industry REA relating to pensions is officially titled Registered Employment Agreement (Electrical Contracting Industry), Variation Order 11th May, 2007
Q. How do I know if my firm is covered by the Registered Employment Agreements?
A. To check if you come under the terms of the REA you can contact the Labour Court and request a copy of the Construction and/or Electrical Industry Registered Employment Agreements. You can contact the Labour Court at: The Labour Court, Tom Johnson House, Haddington Road, Dublin 4, and Tel: (01) 6136666. Alternatively you may download a copy of the REA on the Labour Court’s website http://www.labourcourt.ie/
Q. What employees should I register?
A. By law, all employers in the Construction and Eectrical Industries, who the the REA applies to, must provide pension benefits, death in service and sick pay benefits for all manual workers i.e. craftsmen and general operatives aged 20 to 65 who are directly employed by their firm.
Q. Can I register my office staff?
A.Yes, the Scheme is open to all your staff working in the Construction Industry. You can register and deduct pension contribution for these employees in the same way as your manual workers.
Q. Can I register employees under the age of 20?
A. You are not obliged to register employees under the age of 20, however with the agreement of the employee, the Scheme will accept pension contributions from employees from the age of 18.
Q. Can I register in the scheme as a member if I am a director of the firm?
A. Under the rules of the REA, if you are a director of a limited company you do not have to register yourself as a member however, Revenue rules do allow contributions to be paid by directors of limited companies so registration is open to you. If you are a sole trader you cannot register as a member of the scheme due to your self-employed status and under Revenue rules.
Q. Can I register in the scheme as a member if I am a sole trader?
A. No. If you are a sole trader you cannot register as a member of the scheme due to your self-employed status. The scheme can only accept pension contribuions from PAYE/PRSI workers.
Q. Can I register C45 workers?
A. No, as CWPS is an approved occupational pension scheme with the Revenue Commissioners under Section 774 of the Taxes Act. The scheme can only accept pension contributions from PAYE/PRSI workers.
Q. If I have a Personal Retirement Savings Account (PRSA) in place for my employees do I still need to register them in the Scheme?
A Yes, as previously mentioned, employers covered by the terms of the REA must provide pension benefits, death in service and sick pay benefits for all manual workers, a PRSA provides pension only cover. However, if you are contributing to the Construction Workers Pension Scheme for your employees you do not have to provide access to a PRSA for these employees.
Q. When do I start making deductions from employees?
A. The Scheme will send a Monthly Pension Payment Schedule to you for your employees from the date you registered them in the Scheme (as indicated on the New Member Registration form). Employers should be aware that they are liable for contributions for employees from the date that the employee joined their firm.
Q. What happens if I don’t register an employee and/or make the required deductions?
A. If an employee is unregistered after a two-week period from the date they started employment with your firm, you as the employer remains liable for benefits which the employee (and his or her dependents) would have been entitled to under the terms of the REA. Failure to register a new employee within the time limits and/or make the required deductions is a serious omission. As it is in the interests of the member the Scheme may accept late registration and/or late payment of contributions however, the employer will remain liable for the full amount of any benefits that were due during the period before registration or payment.