Oireachtas Joint and Select Committees
Thursday, 11 October 2018
Public Accounts Committee
Business of Committee
9:00 am
Mr. Seamus McCarthy:
The pension benefits will arise at the time they reach the pension payment age. From an accounting point of view, one must recognise that liability exists. It is a cost associated with the service that was delivered in the year. Every State body has this overhang, or liability to be met in the future. What most of them will do is recognise that the State, in the future, will fund them to that extent and so they recognise an equivalent liability. Effectively it neutralises the liability on the balance sheet so that one can see what is the underlying net asset position.