Mr. Seamus McCarthy:

Yes. In the case of universities, the accounts are required to recognise the liabilities that are incurred in the year as a result of staff working. An actuarial process is gone through to estimate the pension liability that accrues. There is an assumption in that case, and this a matter I am drawing attention to, that the liabilities will be meet in the future as they arise. The actual amount of funding provided in a year is tailored to take account of the liabilities as they arise. The funding is provided on an as-you-need-it basis in relation to pensions.

There is a complication with the universities in that they are required by the Higher Education Authority, HEA, to maintain what are called pension control accounts. That is a buffer that forms, in some cases, funding used by the universities as part of their working capital as they go, but in some cases there are deficits. Most of the universities are operating two or, perhaps, three pension schemes. It is a very complicated funding arrangement but, as I said, the accounting liabilities are fully recognised there.

A different approach is taken with the health bodies. It does make things much more complicated. The liabilities that have already accrued in relation to health bodies are not recognised in the Department of Health's financial statements. The Departments operate on a cash basis so there is no accrual for pensions that have already been incurred. The Department of Public Expenditure and Reform does a periodic exercise to try to estimate the total of the liabilities. I think it does that about every three years. I cannot remember when the last exercise was done. There may be some reference to that in the finance accounts.