Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, transfers of pensionable service between pre-existing public service pension schemes is generally facilitated through the Public Sector Transfer Network (PSTN) and is subject to a set of rules and eligibility criteria, primarily set out in Department of Finance Letter to Personnel Officers 24 April 1979 ‘Draft Transfer Scheme’.

One such condition, or rule, for participation in the PSTN is that bodies must operate transfers of service on a reciprocal basis, including where there is a requirement to pay over a money amount (a 'Transfer Value') representing the cost of the transferred service.

My Department has recently been notified that CIÉ intend to cease participating in the PSTN, or only pay an amount in respect of transfers of service from CIÉ to other network bodies that is less than the full Transfer Value owed in respect of the CIÉ-accrued pension liability.

The principle of reciprocity is key to the proper functioning of the transfer scheme. The payment of an amount that is less than the full Transfer Value would result in the receiving body taking on significant pension liabilities. Additionally, where a full Transfer Value is not paid, the pensionable service accrued by an individual in the earlier pension scheme could not be credited year-for-year in the receiving pension scheme (i.e. resulting in the credit of a lesser amount of service than actually worked). It is therefore not tenable to maintain transfers of service on the basis proposed by CIÉ, which contravene the rules of the transfer scheme. In light of this, transfers of service (both in and out) under the terms of the transfer scheme/PSTN involving CIÉ are currently paused.

The pausing of transfers of service to/from CIÉ relates solely to this issue and is not tied to a particular date and whether a request to transfer service was made before or after that date. It is for the reasons set out above that the individual mentioned may not progress a transfer of service at present.

My Department has formally written to both CIÉ and the Department of Transport to seek clarity on this matter and await their response.