Michael McGrath (Cork South Central, Fianna Fail)
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Question 71: To ask the Minister for Finance the number of persons currently employed by the National Treasury Management Agency, broken down by its constituent entities; if he will further show, in the case of each entity, the number of employees that have specific provision in their contracts of employment for performance based payments; and if he will make a statement on the matter. [27856/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 72: To ask the Minister for Finance if he will provide details of the pension arrangements that apply for employees at the National Treasury Management Agency, including details for each of its constituent entities; if there are separate schemes for each of the entities; if the schemes are defined benefit or defined contribution in nature; the percentage of salary that employees pay towards their pension by way of contribution and the percentage contributed by the employer; and if he will make a statement on the matter. [27857/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 71 and 72 together.

I am informed by the National Treasury Management Agency (NTMA) that staff numbers rose from 169 at end-2009 to 411 as of 30 September 2011. The increase in staff numbers since end-2009 is mainly in respect of the National Asset Management Agency. Staff are assigned as set out in the following table.

The NTMA's shared services (Finance, HR, IT etc) provide support to all of the Agency's business functions.

The legislation which established the NTMA in 1990 positioned it outside of the wider public service structures with operational freedom to negotiate market-competitive salaries.

Staff assigned to NAMA are recruited on the basis of specified purposed contracts – their employment lasts for as long as their function is required by NAMA.

Superannuation entitlements of all NTMA staff, irrespective of assignment, are conferred under a defined benefit superannuation scheme set up under section 8 of the National Treasury Management Agency Act 1990. Contributions are transferred to an externally-managed fund.

The NTMA contribution is determined on the advice of an independent actuary and is, at present, set at a level of 25 per cent of payroll in respect of members of the scheme who will receive benefits based on final salary. A contribution of 10 per cent of payroll is made in respect of new members of the scheme from 1 January 2010. These new entrants, including employees whose superannuation arrangements were previously based on Personal Retirement Savings Accounts (PRSAs), will receive benefits based on career average earnings. Other than in respect of a small number of employees who transferred from the Department of Finance to the NTMA upon its establishment, post-retirement increases are linked to the Consumer Price Index.

Employee contributions are 1.5 per cent of salary in respect of members who joined the pension scheme prior to 1 January 2010 and 2 per cent of salary in respect of new members admitted from 1 January 2010.

A small number of employees whose superannuation arrangements were based on PRSAs prior to 1 January 2010 opted not to join the defined benefit scheme. The NTMA makes a contribution of 10 per cent of salary to PRSAs in respect of these employees.

All NTMA staff pay the Public Service Pension Deduction.

As I have previously stated, it is my intention to examine the approach to remuneration in the NTMA in more detail in the coming months following consultation with my colleague, the Minister for Public Expenditure and Reform. I have also sought the views of the NTMA and the NTMA Advisory Committee in this regard. I will then see what changes, if any, might be appropriate in relation to the remuneration of all staff in the NTMA, having regard to the changing economic circumstances of the State and the need for transparency in public expenditure.