Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The situation may be worse than the Deputies who have raised the issue are aware. I am informed by Permanent TSB that the 2012 annual report showed a deficit of €127 million on the pension schemes. However, new accounting rules which came into effect from 1 January 2013 will cause this deficit to rise. As permitted under the accounting standard which applied in 2012 - IAS 19 - Permanent TSB adopted the corridor approach which allowed the deficit to be smoothed over a period of time. However, the corridor approach was eliminated from 1 January 2013 under the new accounting standard; therefore, the deficit will rise as a result. Based on the deficit figure on 31 December 2012, the new accounting rules will increase the accounting deficit by €184 million, as disclosed in the 2012 annual report, giving rise to a deficit of €311 million. The best way forward is as I have stated, to allow the matter to be referred to the Labour Court - both management and employees agree that this should happen - and allow the space for negotiation under the guidance of the Labour Court.

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