Richard Bruton (Dublin North Central, Fine Gael)
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Question 96: To ask the Minister for Finance the estimated present value of the liability to pay pensions to persons now employed in the public service. [21700/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The present value of public service pensions is the estimated accrued cost in 2005 terms of future pension payments in respect of service to date of those currently employed in the public service. The main factors determining the estimate are the discount rate, pay, length of service and life expectancy. The latest estimate of the present value of pensions of people now employed in the public service is €30 billion. It should be pointed out that provision for the actual payment of pensions is made in the annual estimates of expenditure and from pension funds of semi-State organisations where such funds have been established.

The national pensions reserve fund, which is controlled and managed by the National Treasury Management Agency, will part-fund the costs of both social welfare and public service pensions over the longer term. An amount equivalent to 1% of GNP is invested in the fund each year by the Government. No funds can be drawn down before 2025. From then on, draw downs will be made in accordance with rules laid down by the Minister for Finance in the light of the projected increase in the number of people over 65 in the population to avoid undue variation from year to year in the net Exchequer position. The fund's value at end March 2005 was €12,309 million.