Clare Daly (Dublin North, Socialist Party) | Oireachtas source

We are told that in less than ten days' time, Permanent TSB will shut down its payments into the defined benefit pension scheme and move to a defined contribution scheme. The points made by the other Deputies are very relevant. This is an absolutely enormous blow to over 1,200 people who had a reasonable expectation that they could retire with some degree of certainty that their living standards would be protected. I have no doubt they had made plans with their families and instead, almost overnight, they face the prospect of having to live out the rest of their years in relative poverty having paid into a pension scheme all their lives.

The reason we are raising this issue is because the Minister has the power to do something about this. When the Government sold Permanent TSB to Irish Life, the pension scheme was adequately funded. Contributions have not been kept up. The Government has failed in the legislation before the House next week to deal with the priority system when defined benefit pension schemes are in jeopardy. Not only IBEC but also the unions involved have said they do not want the scheme shut down but want to look at alternative ways in which this issue can be dealt with. It is sickening to think that this proposal is coming off the back of a cost-saving measure when enormous fees and payments are being made to board members, not just those working in a full-time capacity but part-time directors who are getting more for attending a couple of meetings a year in an average payment when one spreads it out over the year than people who retired after spending decades working in the banking system.

We are asking the Minister to look at this issue, call a halt and instruct the bank not to shut down the defined benefit scheme and to enter talks under the auspices of the Labour Relations Commission or whomever to come up with a fairer answer that does not leave people pauperised in the latter years of their lives after having worked all their lives for a decent pension.

See this speech in context