Written answers

Thursday, 22 April 2010

Department of Finance

Pension Provisions

5:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 75: To ask the Minister for Finance the reason State controlled banks continue to pay pensions to former employees who are no longer repaying their loans taken out with their former employers; and if he will make a statement on the matter. [16117/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware Anglo Irish Bank is the only bank which is State owned and managed by a Board on behalf of the State. Pension Schemes available to staff at the bank include defined benefit schemes (which closed to new membership in 1994) and a defined contribution scheme. These schemes are funded schemes, and are operated by appointed trustees. The schemes are operated independently from the bank under distinct rules and legislation. Pension entitlements are paid from the funds of the relevant schemes and in accordance with the rules of the particular scheme.

As a general rule payment of pension is independent and legally separate from other financial/loan arrangements the bank may have with a former employee. The bank is not legally entitled, as the law stands, to exercise a lien over or prohibit the payment of pension entitlements to former employees.

As with all loans, loans to former directors are being pursued to the full extent by the bank as appropriate and where necessary through the courts.

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