Written answers

Tuesday, 15 April 2014

Department of Public Expenditure and Reform

Pension Provisions

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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287. To ask the Minister for Public Expenditure and Reform the reason his Department has written to the CEO of the pensions committee of Waterways Ireland who oversees the administration of the North-South pension scheme for its employees of the intention to increase employee contributions from April 2014 in view of the fact the Haddington Road Agreement gave a commitment that public service pay and related issues would not be revisited over the lifetime of the agreement; and if he will make a statement on the matter. [17955/14]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Five of the six North/South Implementation Bodies, including Waterways Ireland, along with Tourism Ireland, operate the North/South Pension Scheme (N/SPS).  The Scheme is unique in covering public service staff employed on both sides of the border; staff of the affiliated employers in this jurisdiction are automatically members of the Scheme.  The Chief Executive Officers of the relevant N/SPS bodies and Tourism Ireland meet as the N/SPS CEO Pension Committee, which exercises trustee-like functions in relation to the Scheme.

As Minister for Public Expenditure and Reform, I am jointly responsible, along with the Northern Ireland Minister for Finance and Personnel, currently Mr Simon Hamilton, MLA,  for the rules of the N/SPS, and in particular for approving amendments which may be proposed to those rules.

Review and reform of existing pension arrangements, including public service pension arrangements, has been an ongoing issue in both jurisdictions over recent times. In exercise of my responsibilities in relation to the N/SPS, I and my officials have engaged in correspondence and discussion about reforms to the Scheme rules with my counterpart Northern Ireland Minister and his officials.

As outlined in recent correspondence with the CEO of the Pensions Committee, I consider that the current reform package, which includes a proposed increase in pension contributions, is appropriate and proportionate, particularly having regard to the desirability of maintaining a common pension scheme for N/SPS employees in both jurisdictions. In this regard I welcome the Committee's acceptance, in principle, that the N/SPS should be reformed in line with changes to the Principal Civil Service Pension Scheme Northern Ireland (PCSPSNI).  I do not accept that the Haddington Road Agreement precludes necessary ongoing pensions reforms with appropriate consultation.

The Deputy may be aware that, in this connection,  officials from my Department have met with Union interests under the auspices of the Labour Relations Commission.  In the light of these discussions, which I am hopeful will conclude in the near future, I do not wish to comment further on this aspect. Contribution increases have not been implemented pending completion of this process.

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