Tuam building firm fined for pension scheme violations

A TUAM construction company has been fined €1,000 for failing to pass on mandatory pension contributions for its employees. The Pensions Board took the case against Thomas McHugh (Kilcloghans) Ltd for failing to make payments to the Construction Workers Pension Scheme. The building company is owned by Co Cllr Tom McHugh, who pleaded guilty to two counts, one on behalf of the company and one as an individual. Three other counts were withdrawn.[private] The Pensions Board representative told Tuam District Court that Thomas McHugh Ltd is a member of the Construction Workers Pension Scheme and is obliged to take pension contributions from his employees' wages and send them on to the scheme within 21 days. She said Mr McHugh had failed to do so for a certain period and this could result in the loss of potential benefits to employees. She said an agreement has been reached for the payment of arrears and this will run until October 2013. All of the payments are up to date. The maximum fine for the offence is €5,000 and/or 12 months in prison. Defending solicitor James Glynn told Judge Geoffrey Browne that his clients were meeting the terms of the agreement to pay the arrears due. He said his client has contributed €400,000 to the scheme over the years. Mr Glynn said 2008 was a very difficult year for the construction business and since 2010 Mr McHugh hadn't sold a single house in his residential development. He said neither of his clients have taken a salary from the company since 2008 and they (Tom and Sally McHugh) have invested their own personal savings in the company, which he said continues to provide employment in the town. He said that, even since 2008, the company has contributed €67,000 to the scheme. Mr Glynn appealed to the Judge for leniency and highlighted how the company has a good relationship with their employees. He had a letter from the CWPS stating that all benefits are in place for employees and that no one has lost out as a result of the offence. Judge Browne fined the company €1,000 and at first fined Mr McHugh €500, however having heard the appeal for leniency, he applied the Probation Act instead. [/private]