Written answers

Wednesday, 22 April 2009

Department of Finance

Pension Provisions

10:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 231: To ask the Minister for Finance when he proposes to approve the new RTÉ pension scheme, the 50/50 risk sharing scheme; the reason for the delay; and if he will make a statement on the matter. [15916/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Minister for Communications, Energy and Natural Resources has primary responsibility for matters relating to RTÉ, including its pension schemes. However I have a role because of my responsibility for public service pension policy and for public service expenditure generally.

Under the terms of the Broadcasting Authority Act 1960 (as amended) RTÉ pension schemes and arrangements are subject to the approval of the Minister for Communications, Energy and Natural Resources with the concurrence of the Minister for Finance. This is similar to the provisions normally used when establishing a State body.

My understanding is that late last year a new pension arrangement of a hybrid defined benefit/defined contribution scheme was proposed and was agreed to by Management and Unions. The details of this new arrangement, including a draft Scheme, were submitted to the Department of Communications, Energy and Natural Resources seeking Ministerial approval and consent, as required under the governing legislation. This correspondence was also copied to my Department by RTÉ.

Examination of a pension scheme is a complex and detailed exercise. In addition the use of hybrid schemes in the public sector is a relatively new development. My officials are in discussion and consultation with officials in the Department of Communications, Energy and Natural Resources regarding the examination of the new RTÉ hybrid scheme and will endeavour to progress matters as soon as possible.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 232: To ask the Minister for Finance if he will furnish a reply to a commitment given in the Houses of the Oireachtas on 25 February 2009 to provide the figures on the cost of including low paid workers within the pension levy; if he will explain the way he could evaluate the matter as marginal on that date and yet be unable to furnish the figures requested within two months; and if he will make a statement on the matter. [15922/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I can inform the Deputy that I have now written to him about this matter. The new public service pension-related deduction was introduced earlier this year. As you know, this was done by the Financial Emergency Measures in the Public Interest Act 2009 which was signed into law on 27 February 2009. The recent Supplementary Budget changed the pension-related deduction to ameliorate its effect on lower paid public servants.

During the Committee stage debate on this Bill in the Dáil, you raised the issue of public servants who might now qualify for means tested benefits as a result of paying the deduction. Our debate on that occasion made clear the need to introduce the pension-related deduction in the light of the severe budgetary constraints we are experiencing taking account of the nature and quality of public service pension terms generally.

The means tests for FIS purposes and for medical card qualification take into account the pension-related deduction for public servants. A quantification of public servants who may have means slightly above the current income thresholds is not possible but the number is not estimated to be of such a scale as to call into question the impact on the Exchequer. The recent Supplementary Budget change will also reduce any effect on these means tests qualifications.

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