Oireachtas Joint and Select Committees

Thursday, 24 September 2015

Public Accounts Committee

Higher Education Authority: Financial Statements 2014

10:00 am

Mr. Stewart Roche:

Yes. Could I correct the record? I mistakenly said that LIT made a tax settlement, instead of DKIT.

With regard to the pensions, those in payment are paid out of the closed pension scheme, which is the older one, and lump sum payments on retirement are paid out of that particular scheme whereas the model scheme is a pay-as-you-go scheme. The difficulty, as Mr. Boland has outlined, is that the excess of the payments over the income has meant that there is a cash outflow but it is all coming out of the same accounts. There is general cash. In the model scheme there is a surplus because of the newer members and that is a pay-as-you-go scheme. The funding of the pensions that are creating the major deficit would be in the closed scheme.

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