Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Last year, there was a significant raid on the pensions of workers in the private sector through the 0.6% pension levy to fund job creation, which has clearly failed in its application. Many pensioners are receiving letters from their trustees, saying pensions are being reduced because of the levy. In the context of the NewERA proposal, and particularly the National Pensions Reserve Fund and the forthcoming legislation regarding it, or by including it in the Financial Emergency Measures in the Public Interest Act 2010 and the Credit Institutions (Stabilisation) Act, has the Government considered including a mechanism similar to that used for public sector pensions to reduce those pensions significantly? I refer to bankers' pensions in particular. There is a precedent and a facility that has been used in respect of public sector pensions and it could be used in the context of the pensions of bankers, particularly at a bank that has received substantial State support and where transfers have taken place within the bank's balance sheet, as happened recently in the case of AIB. The Department of Finance officials did not object. In the context of such recapitalisation and utilisation of taxpayers' funds and company funds to bail out the pension fund up to 100%, the mechanism used for the public sector could be used here to redress the balance and to apply some justice and fair play. It is a constructive suggestion that could have an impact on bankers' pensions.

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