Paul Kehoe (Wexford, Fine Gael)
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252. To ask the Minister for Health if he will clarify the financial position of an organisation (details supplied) in relation to the extent of its pension liabilities; if the funding mechanism has to date been approved; if so, the detail of that funding mechanism; his views on whether it is appropriate to accumulate large reserves from fee and registration income; the way in which this situation has arisen; and if he will make a statement on the matter. [12744/17]

Simon Harris (Wicklow, Fine Gael)
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The Pharmaceutical Society of Ireland (PSI) is an independent self-funded body established under the Pharmacy Act 2007 (the Act). Its functions relate to the regulation of pharmacy services in Ireland (5,840 pharmacists, 1,900 pharmacies and 360 pharmaceutical assistants). Under the Act, the PSI inter alia is responsible for the registration of pharmacists, pharmacies and pharmaceutical assistants and the education, training and continuing professional development of pharmacists, as well as the inspection of pharmacies, enforcement of medicines and pharmacy legislation and the operation of fitness to practise functions.

These functions are funded by fees paid by registrants. The setting of fees for the pharmacy profession is governed by the Act which requires the PSI to make an application for ministerial consent to any fees that it proposes to charge. This process allows for the consideration, and examination, of the Society’s fee proposals by my Department. Following an extensive review fees were reduced by 10% in 2010 and most fees by a further 5% in 2014.

The PSI receives the majority of its income from registration fees in the last quarter of each year (70%) and this income is reflected in the PSI Financial Statements for that year. However, this income is required to enable the PSI to fulfil its statutory obligations under the Act in the following year.

In relation to the PSI superannuation scheme, the Department of Finance granted sanction in May 2008 to the PSI to operate, on an administrative basis, a superannuation scheme based on Public Service Model Scheme terms. On 10 March 2016, the Pharmaceutical Society of Ireland Superannuation Scheme 2016 (S.I. 136 of 2016) was approved and signed by the Minister for Health with the consent of the Minister for Public Expenditure and Reform (DPER). The Scheme came into operation on that date.

The purpose of the SI is to adopt the Rules set out in the Schedule to the Rules for Pre-existing Public Service Pension Scheme Members Regulations 2014 (S.I. No. 582 of 2014) as a scheme for the granting of superannuation benefits to the Registrar and staff of the PSI who are not members of the Single Public Service Pension Scheme.

The PSI operates its superannuation scheme on a 'pay as you go' basis from existing cash reserves as well as from employer and employee superannuation contributions. Contributions to the Scheme are currently held in a designated deposit account until such time as the funding mechanism is formally approved. The amount held in the deposit account is reflected in the PSI cash balances. The current value of the funds held on deposit is €3.7m. The approval of a funding model is a matter for the Department of Public Expenditure and Reform (DPER) and it is currently considering the appropriate funding mechanism which should apply.

It should be noted that the superannuation scheme and the funds held pending the approval of the funding mechanism by DPER are separate to PSI funds required to fulfil its statutory requirements under the Act.