Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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955. To ask the Minister for Communications, Energy and Natural Resources if he has discussed the ongoing pension deficit at Bord na Móna with company management; if his attention has been drawn to the fact that pensioners are currently facing a cut of up to 7% in their pension payments, and have not received a cost of living increase since 2002; if consideration has been given to asking the company to transfer contingent assets, including land, to the pension fund to address the deficit; and if he will make a statement on the matter. [12054/15]

Alex White (Dublin South, Labour)
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The General Employees Superannuation Scheme (GESS) and associated Spouses' and Children's Contribution Pension Scheme are defined benefit schemes. The Schemes cover certain employees of Bord na Móna, mainly clerical, administrative and middle managerial staff. The schemes currently have a significant deficit.

I understand that it has been agreed in principle between the company and the Trustees of the schemes, subject to a member consultation process required under the Pensions Act 1990, that a statutory funding proposal would be submitted by the Trustees to the Pensions Authority in relation to the schemes. The purpose of this statutory funding proposal is to address the deficit that exists within the schemes on the statutory minimum funding standard basis set out in the Pensions Act. The objective is that the proposal would be based on the agreement of both sides following consideration of a large range of options.

Bord na Móna has advised my Department that the draft funding proposal is designed to address the deficit in the schemes in a balanced way through a combination of substantial additional financial contributions by the company and benefits changes for members. The latter include a freeze on pensionable remuneration and reductions in pensions payable to pensioners as permitted by the Pensions Act. The Trustees and the company are currently in consultation with the members of the schemes about the proposed changes arising from the funding proposal.

Subject to the outcome of the member consultation process, an application under Section 50 of the Pensions Act may be made by the Trustees requesting a direction from the Pensions Authority requiring the Trustees to reduce certain accrued benefits under the schemes as part of the solution to address the deficit.

If the proposal is acceptable to the Pensions Authority, the Company would then require shareholder consent to implement any new funding proposal and section 50 benefit changes. NewEra would be required to examine the final proposal and submit a report on the financial elements for consideration by the Minister for Public Expenditure and Reform and by me prior to making a final determination.