Clare Daly (Dublin Fingal, Independent) | Oireachtas source

I know Deputies Chambers and Darragh O'Brien were keen to be here today. They would be singing very much from the same hymn sheet as us on this matter.

This is urgent because the wind-up of the financial interest of the scheme is under way. The scheme was in existence for eight years. As Deputy Broughan has said, workers paid in an average 6% per head, including the employer contribution. A further €34 million was put into the kitty beforehand. The benefits objective was discretionary and there is no requirement for the method that is being used by the trustees now to be implemented. Moreover, there is no impediment to the trustees changing their minds.

What has really aggrieved people is the unilateral decision making. It means every group of people involved in the scheme is being affected. For example, for 394 current pensioners of the scheme, the average weekly benefit comes to 45 cent per week. The trustees propose to buy annuities for this group of pensioners out of their interests. However, annuities are exceptionally pricy at the moment. It would be far better for them to have the purchase of approved retirement funds.

In the case of deferred members, the trustees want to buy pre-retirement bonds, most likely, with one of the big insurance companies. The trustees have advised that if a member wants to transfer out of the pre-retirement bonds that the trustee has chosen, there will be a fee to opt out. There has been no discussions whatsoever.

As we discussed last week, there has been incredibly unfair distribution of the financial interest. People of a similar age who have made similar financial contributions will be subject to major differences in returns. As I said last week, one class can put in €10,000 and get back €12,000, while another can put in €22,000 and get back €84,000. There is a method in place, but it is an unfair method. We urge and hope the Minister and the Department can intervene with the Pensions Authority in respect of these matters.

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