Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 20:

In page 27, between lines 34 and 35, to insert the following:"(3) Notwithstanding subsection (1)and subject to—

(a) any requirement under any regulations made under section 37to repay any overpayment, or

(b) any requirement arising under section 39to repay any deduction,

a contribution of a public servant who is a member of a superannuation scheme established under section 33AG(2) of the Central Bank Act 1942 shall be paid into the trust fund established under section 33AG(4) of that Act in respect of that superannuation scheme.

(4) A reference in subsection (3)to a superannuation scheme established under section 33AG(2) of the Central Bank Act 1942 includes a reference to a scheme resulting from the merger under section 33AH(3) of that Act of such a scheme and a scheme referred to in section 33AH(1) of that Act.".

This amendment amends section 38 of the Bill.

This section requires that the additional superannuation contribution must be paid centrally into the Exchequer, or otherwise disposed of as the Minister for Public Expenditure and Reform so directs.

This technical amendment provides certainty that any additional superannuation contribution which is paid by employees or officers of the Central Bank will be retained in the trust fund of the bank's pension scheme. It is required to address inconsistencies with current legislation and to ensure the Central Bank's independence, as required under EU law. The bank provides a funded pension scheme for its staff under section 33AG of the Central Bank Act 1942. The bank is obliged to transfer all contributions made by members of its pension scheme to the trustees of that scheme.

Without this amendment, any additional superannuation contribution made by Central Bank staff would be required to be surrendered to the Exchequer, which is at odds with current legislation. Following consultation with the Central Bank and having received the opinion of the European Central Bank on the draft Bill, this amendment is required to ensure the independence of the Central Bank.

It should be also noted that, uniquely and in recognition of the bank's financial independence, the additional superannuation contribution will apply only to employees and officers of the Central Bank with the written consent of the Governor of the bank and the Minister for Finance.

See this speech in context