Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank Deputy Troy for the question. It relates to a matter which is exercising the minds of a large number of active pensioners at CIÉ. He is right to raise this up in the House, even though it is not one with which I am very directly involved. However, I think the information that will come out of this debate will be useful to many of those people involved in the scheme. Issues in relation to CIÉ ’s pension scheme are primarily a matter for the CIÉ Group, their employees and the trustees of the pension scheme. The schemes are also subject to independent regulation by the Pensions Authority.

The employees of CIÉ are provided pension benefits on retirement from one of two defined benefit schemes; the regular wages scheme and the superannuation scheme. In common with the overwhelming majority of defined benefit schemes, they are facing significant challenges in maintaining solvency to ensure prudent provision is made to fund the cost of future pensions in a low interest rate environment. As I have pointed out previously in this House and elsewhere, CIÉ is on record at the Workplace Relations Commission as making two significant commitments.

First, CIÉ has committed that it will not impose any change that it proposes without the agreement of the active members of both schemes. Second, CIÉ commits that it will continue to contribute to both schemes in accordance with the rules of the schemes. These commitments are important and reassuring.

I have previously outlined the challenges faced in addressing the solvency of the schemes and the process under way to address the deficit. The process involves detailed discussion between CIÉ and employee representatives, facilitated by the WRC.

Deputies will be aware that members of one of the CIÉ pension schemes have highlighted particular concerns. These were communicated to public representatives and raised in the House, with the Committee of Public Accounts and with the Joint Committee on Transport, Tourism and Sport. I understand that CIÉ issued a comprehensive response to these queries on 22 February.

As the Deputy knows, CIÉ also appeared before the joint committee on 7 March to discuss the matter, explain its position and set out the facts. Following that meeting, CIÉ has written to the committee formally conveying the company's willingness to pursue two measures that could help support constructive engagement between the company and the unions regarding the pensions issue.

In its letter CIÉ has made it clear that it is willing to fund independent advice for the trade union group. This would help determine matters of fact, whether through a process facilitated by the WRC, or alternatively through some other mutually agreeable process.

CIÉ has also indicated to the joint committee its willingness to participate in a process, chaired by a suitable independent professional person or body appointed by CIÉ and the trade union group, TUG, with a view to determining past matters currently at issue. In the event that the parties fail to agree on a mutually agreeable body, CIÉ proposed that the Director General of the WRC could be requested by the parties to appoint such an independent body.

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