Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if he will state if the defined benefit pension funds of the universities are subject to the pension fund levy; and the arrangements in place to compensate those retiring at 65 following the removal of the transition pension to which they have contributed. [6418/13]

Michael Noonan (Limerick City, Fine Gael)
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While the liabilities and terms and conditions of the pension schemes to which the Deputy refers are primarily matters of responsibility of other Ministers, I am given to understand that the position on the issues raised in his question are as follows: Pension Fund Levy

The pension fund levy applies at a rate of 0.6% per annum to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. However, as the University defined benefit pension funds were transferred to the National Pensions Reserve Fund under the Financial Measures (Miscellaneous Provisions) Act 2009, the pension fund levy does not apply.

Transition Pension

On the assumption that the Deputy is referring to public service pension arrangements, the position is that public servants who are due to retire aged 65 in January 2014 will be able to draw their occupational public service pension at age 65.

The changes regarding State (Transition) Pension will have no impact on public servants who are on modified social insurance. However, for those public servants who are fully insured, their public service pensions are, like many occupational pension schemes, usually co-ordinated with Social Welfare benefits. This means the occupational pension paid is based on the assumption that the pensioner also receives the State Pension (Transition or Contributory). Where neither of those pensions is payable, a discretionary supplementary pension may be payable in most public service pension schemes to bridge the gap.

One of the conditions for payment of a supplementary pension is that the pensioner, through no fault of their own, does not qualify for Social Welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available Social Welfare benefits in order to receive a supplementary pension.