Written answers

Tuesday, 12 May 2009

Department of Finance

Pension Provisions

8:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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Question 151: To ask the Minister for Finance the Government Department which is in charge of producing the new RTE pension scheme known as the 50:50 risk sharing scheme; if the consultation process between his Department and the Department of Communications, Energy and Natural Resources has been completed; when it is expected that the pension scheme will be finally approved; if his attention has been drawn to the fact that the longer the consultation process takes the less value the pensions will have; and if he will make a statement on the matter. [18826/09]

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.

I can confirm that the specific issue raised by the Deputy concerning the delay in approving the scheme having an effect on the value of members' benefits has been brought to my attention. As I said in an earlier reply, 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 are considering this issue in that context and will conclude the matter as soon as possible. I can assure the Deputy that the normal practice when examining public service schemes is for all relevant service to be reckoned in the scheme, when it is approved.

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