Michael Ring (Mayo, Fine Gael)
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Question 51: To ask the Minister for Finance if he will confirm that the proposed pension levy for public servants will be paid directly into the National Pension Reserve Fund; the expected yield from this levy; and if this levy is not to be paid into the reserve fund, his proposals for this money. [14204/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The pension related deduction element of the payroll saving will be €1.35 billion in a full-year and €1.12 billion in 2009 based on the provisions of the Financial Emergency Measures in the Public Interest Act 2009. These savings will be applied to the benefit of the Exchequer and are not earmarked for the National Pensions Reserve Fund.

Michael Ring (Mayo, Fine Gael)
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Question 52: To ask the Minister for Finance the schedule and amounts of payments which he proposes to make into the National Pension Reserve Fund during 2009. [14210/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The National Pensions Reserve Fund Act 2000 provides for an annual contribution from the Exchequer to the National Pensions Reserve Fund equivalent to 1% of GNP. The amount to be paid in respect of 2009 is €1.584 billion. The contribution is normally paid quarterly and the payment in respect of the first quarter of 2009 was made in March.

The Government announced on 11 February 2009 that the recapitalisation of Allied Irish Bank and Bank of Ireland through the purchase of preference shares to the value of €3.5 billion in each bank would be funded through the National Pensions Reserve Fund, with €4 billion coming from the Fund's resources and €3 billion to be provided by frontloading the Exchequer contributions for 2009 and 2010. The recapitalisation of Bank of Ireland was effected on Tuesday, 31 March 2009 from the Fund's resources. The balance of this year's contribution and the further payment of €1.416 billion will be paid to the Fund for the recapitalisation of Allied Irish Bank when that bank has completed the necessary internal procedures to approve the issuance of preference shares. This is expected to be in early May.