Pearse Doherty (Donegal South West, Sinn Fein)
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Question 232: To ask the Minister for Health if he will confirm that private employees of a company (details supplied) in Dublin 20 are being charged the public sector pension levy; the number of staff currently paying this levy; the period of time they have been charged this levy; the legal basis for the charging of this levy; the use to which the money charged is subsequently put; and if he will make a statement on the matter. [19273/11]

Pearse Doherty (Donegal South West, Sinn Fein)
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Question 238: To ask the Minister for Health the instructions given by the Health Service Executive to the management of a company (details supplied) in Dublin 20 regarding the application of the public service pension levy to salaries of employees of the company; and if he will make a statement on the matter. [19305/11]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 232 and 238 together.

I understand that a Private Pension Scheme has been in operation in the company in question since 1973. The scheme is a non-contributory defined benefit scheme and is an exempt approved scheme (approved under Section 774 of the Taxes Consolidation Act 1997). It was established to provide retirement and life assurance benefits for its members. As of 30th June 2011, there were:

738 Active members;

195 deferred members;

49 members in receipt of a pension;

Total scheme membership of 982.

When the Financial Emergency Measures in the Public Interest Act, 2009 came into force, the Department of Finance confirmed that the a Pension Related Deduction (PRD) applied to all employees of the company, as it is deemed to be a public sector employer under the legislation (Sections 1 (i), 2(1) (b) (i) and 2(1) (b) (iii) refer). The deduction came into effect in March 2009.

I have also been informed that the Private Pension Scheme was closed to new entrants on 31st December 2006. Staff who joined the company on, or after, January 1st 2007 are members of the New Model Superannuation Scheme. There are 178 New Model Scheme members as of 31st December 2010, who also pay the PRD.

At present, monies deducted from salaries under the PRD are retained by the company. To offset this, I understand that the HSE has reduced the company's annual allocation by a similar amount. In 2011, their allocation has been reduced by approximately €2.05 million, to offset the PRD retained by them. In effect, the PRD is being used for day-to-day running expenses of the organisation.