Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

Question 58: To ask the Minister for Finance the current value of the National Pensions Reserve Fund; the commitments on the funds in respect of payment; and if he will make a statement on the matter. [9705/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The National Pensions Reserve Fund (NPRF) was established on 2 April 2001 under the National Pensions Reserve Fund Act 2000 for the purpose of meeting as much as possible of the cost to the Exchequer of social welfare pensions and public service pensions to be paid from the year 2025 until the year 2055, or such other year as may be specified by order. Subsequent amendments to the National Pensions Reserve Fund Act provide that the Minister for Finance may direct the National Pensions Reserve Fund Commission to invest in certain credit institutions, to buy Government bonds and, until 2013, to provide money to the Exchequer for capital purposes.

The total value of the National Pensions Reserve Fund, according to its most recently-published figures, was €23.2 billion at 31 March 2011. This figure included €7.9 billion invested in Bank of Ireland and Allied Irish Banks on the direction of the Minister for Finance.

On foot of a Ministerial direction, €5.5 billion in cash was set aside as the first part of a phased de-risking of the NPRF in February 2011 in anticipation of its contribution required under the EU/IMF Programme of Financial Support for Ireland. This left some €9.8 billion in the Discretionary Portfolio (the assets available for investment at the discretion of the NPRF Commission) at end-March 2011 values. The table below shows the composition of the Fund at end-March 2011:

Following a second Ministerial direction in April 2011, a further €4.5 billion was realised from the Discretionary Portfolio. This increased the amount set aside for the EU/IMF Support Programme from €5.5 billion to €10 billion.