Written answers

Wednesday, 24 March 2021

Department of Public Expenditure and Reform

Public Sector Pensions

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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522. To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 46 of 20 January 2021, if he will provide an account of his stewardship of the matter (details supplied); and if he will make a statement on the matter. [14247/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware, the legislation underpinning this particular matter is the Postal and Telecommunications Services Act 1983, as amended by the Telecommunications (Miscellaneous Provisions) Act 1996.

While the Department of Environment, Climate and Communications is responsible for this legislation, my understanding is that Section 46 of the1983 Act required the newly established Telecom Éireann to create a pension scheme for staff of the company and set a minimum level of parity between the Eircom Superannuation Scheme and the scheme that applied to staff members of the Department of Posts and Telegraphs as it stood on the day before the vesting day. It does not imply that the conditions in the Eircom Scheme must continue to match any subsequent improvement in pension conditions for these staff.

The matter of pension increases is provided for exclusively under the Eircom Scheme Rules. Under these rules it is the company that has sole discretion to determine any pension increases it deems appropriate, subject to Ministerial approvals. There is no entitlement to pension increases other than those granted in accordance with the scheme rules.

The function of the Ministerial nominees on the board of Trustees of the Eircom No. 2 Fund is primarily, along with the other Trustees, to hold the Fund upon trust to provide specified  benefits based  on pre-vesting day service to persons entitled to same. The terms of the trust deed do not provide for any ministerial or Trustee discretion in relation to the quantum of pension increases.

The detailed operation of individual pension scheme rules such as these are matters for the relevant parent Government Department. Any further questions on these issues or on the 1983 legislation should be directed the Department of Environment, Climate and Communications.

As previously advised, the Financial Services and Pensions Ombudsman is the appropriate body to deal with any specific detailed pension complaint once it has gone through the relevant internal dispute resolution procedures.

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