Joan Burton (Dublin West, Labour)
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Question 47: To ask the Minister for Finance if further consideration has been given to the possible transfer to the Exchequer of the assets and liabilities of pension funds from State agencies or other public or semi-public bodies; if he views this as a possibility; if actuarial studies have been carried out as to the expected financial impact this would have on the Exchequer over both the short and long term; and if he will make a statement on the matter. [14170/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Discussions have been progressing satisfactorily with the trustees and administrators of the funded pension schemes of the five older universities and certain non-commercial semi-State bodies (IDA, SFADCo, FÁS, Bord Bia, Irish Goods Council, Arts Council, CERT and a number of regional tourism organisations) which have funded schemes, with a view to providing consistency and clarity for the future in terms of meeting the liabilities of these schemes. This follows consideration some time ago of the pensions difficulties facing those universities by a working group under the Higher Education Authority which recommended such discussions. The liabilities of the funds at the end of 2008 are estimated to be approximately €3bn with the assets valued at €1.7bn at that time. As regards the impact on the public finances, the current classification of these funds under the EUROSTAT rules is such that the transfer of the assets of the universities' funds and the SSB funds established under Trusts would impact positively on the General Government Balance (GGB) when received. The initial revenue and subsequent investment return would be offset in the future by the payment of pension benefits which would be recorded as Government expenditure at the time of payment.

The background to this is that all funded schemes must now meet minimum funding standards under EU law unless they are covered by the State. This has presented problems for the universities and non-commercial SSBs with funded pension schemes where the State ultimately carries the liability but where this is not clear enough to warrant exemption under EU law. In that context, it is proposed that the assets of those schemes would be transferred to the State along with the liabilities which would then be met, effectively, by the State on a pay as you go basis in the future. The terms and conditions of the schemes would be no better nor worse than the members would be entitled to anyway. If agreement is reached, legislation to give effect to all this would be required.