Michael Moynihan (Cork North West, Fianna Fail)
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1149. To ask the Minister for Communications, Energy and Natural Resources the Department responsible for the financial oversight and corporate governance of Bord na Móna; the proposed changes that will be introduced to deal with a deficit in Bord na Móna’s general employees' superannuation scheme; and if he will make a statement on the matter. [22506/15]

Michael Moynihan (Cork North West, Fianna Fail)
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1150. To ask the Minister for Communications, Energy and Natural Resources the Department responsible for the financial oversight and corporate governance of Bord na Móna; the proposed changes in Bord na Móna’s general employees' superannuation scheme that will see a pension levy being imposed on former employees in receipt of their pension between the years 2011 to 2015, while a levy will remain in place on pension entitlements for the lifetime of the pensioner; and if he will make a statement on the matter. [22507/15]

Alex White (Dublin South, Labour)
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I propose to take Questions Nos. 1149 and 1150 together.

The General Employees' Superannuation Scheme is a defined benefit scheme for clerical and management staff of Bord na Mona. It has been in deficit for a number of years and has failed to meet the Minimum Funding Standard laid down under the Pensions Act. Without an amendment to the Scheme, this deficit is expected to rise to an estimated €75.1m by 2023.

In order to address the issue, an amendment was agreed between Bord na Móna and the Scheme Trustees after consultation with the Scheme Members and was approved by the Pensions Authority on 22 April, 2015. Under this amendment 67% of the deficit is addressed by increased company contributions, 26% from member contributions and 7% from delayed investment de-risking. This breakdown of contributions is approximate and subject to changes in investment market conditions during the course of the funding proposal's review, on which the Scheme Actuary's assumptions are based. Member contributions are made via benefit reductions on a progressive scale where pensions up to €12,000 per annum are not reduced, pensions of €12,000 - €60,000 incur a 3.6% cut while pensions above €60,000 incur a 7.2% cut, subject to not being reduced below €57,840.

The approved changes to the Scheme do not include a pension levy. The levy the Deputy refers to is the general pension levy introduced by the Minister of Finance in 2011 on all funded pension schemes and personal pension plans established in the State. Bord na Móna is no different in this regard.

I, with the concurrence of the Minister for Public Expenditure and Reform, approved the Scheme changes on 20 May. These will take effect this month.