Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

Absolutely.

I thank Deputy Healy-Rae for raising this important matter, which I am taking on behalf of the Minister, Deputy Ryan. I would like to clarify that issues in respect of Córas Iompair Éireann pension schemes are primarily a matter for the trustees of the pension schemes, the CIÉ Group and its employees. The employees of the CIÉ Group companies, namely, Bus Átha Cliath, Bus Éireann, Iarnród Éireann and CIÉ, are provided with pension benefits on retirement from one of two schemes, namely, the regular wages scheme, which covers front-line staff such as bus and train drivers in the three CIÉ companies, and the 1951 scheme, which mainly covers administrative staff. The 1951 scheme is the last remaining open and unchanged defined benefit pension scheme in the State.

Pension schemes are required to annually measure their liabilities in accordance with accounting standards and the statutory minimum funding standard. As of the end of December 2022, the balance sheet deficit for these two defined benefit pension schemes was €396.5 million. While the funding position improved during 2022, and the 1951 scheme now meets the minimum funding standard required by the Pensions Authority, the regular wages scheme currently does not meet the minimum funding standard and the funding level is marginal and subject to future market volatility.

I understand that under the accounting standards, the CIÉ pension schemes have the largest deficit of any company in Ireland. I further understand that the CIÉ Group is actively engaged in introducing changes to its pension schemes aimed at rectifying the significant deficit in order to meet the statutory minimum funding standard, and that these changes also aim to sustain the pension schemes into the long term.

In respect of the regular wages scheme, I am advised the Minister for Transport signed three statutory instruments related to the scheme on 6 July 2022, with an operative date of 18 July 2022. The main change introduced under this statutory instrument was an increase in the retirement age of members of this scheme from 60 to 65 years of age.

Regarding the 1951 scheme, I understand that CIÉ has prepared and submitted a draft statutory instrument to give effect to Labour Court recommendations for the 1951 scheme, as passed by a ballot of trade union members in May 2021. This is being considered by the Department of Transport in conjunction with advisers in NewERA. The key changes proposed would introduce an increase in the age of retirement from 60 to 63 years of age. The Deputy may also be aware the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court, and the 1951 committee is seeking an interpretation of a rule of the scheme from that court. The hearing commenced on 24 May 2022 and ran for four days, and the outcome from the hearing is expected in the coming months.

I am advised that the proceedings are next due for mention before the Commercial Court on 24 January 2024.

Concerning pension increases for CIÉ pensioners, I reassure the Deputy that the Minister for Transport recognises that it must be incredibly frustrating for the 2,270 CIÉ-salaried pensioners that the State contributory pension payment has increased by approximately €54 since 2008, while there has been no such increase in their pensions over the same period, and that this must be particularly frustrating for the 72 female members of CIÉ pension schemes whose monthly pension is significantly less than the State contributory pension.

I am advised that an increase for pensioners would only be possible when the schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the scheme actuary at the time an increase is proposed, and it would be done in agreement with the trustees of the schemes. However, it is my understanding that until such time as schemes can sustainably afford pension increases, pension increases are, regrettably, not possible.

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