Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy may be aware, it was agreed under a Vhi policy introduced in 2009 that increases in pensions and preserved pensions granted would be based on the level of increases in the consumer price index (“CPI”) up to a maximum of 2%. These increases may be granted at the discretion of the company, and are subject to approval of the Minister for Health with the concurrence of the Minister for Public Expenditure and Reform.

The Code of Practice for the Governance of State Bodies and DPER Circular 16/2021 requires that any request for a Vhi pension increase must first be submitted to the Department of Health for Ministerial Approval. The standard process is that when the Minister for Health has given his approval, the Department of Health would then seek the consent of the Minister for Public Expenditure and Reform with an accompanying business case and a report prepared by NewERA on the matter. Should there be any clarifications required DPER would then engage with the Department of Health.

Any proposed increase will be given full consideration from my Department with reference to advice provided by NewERA and in accordance with the Code of Practice for the Governance of State Bodies and Circular 16/2021.

I acknowledge that cost-of-living increases are creating challenges for pensioners. My Department is currently engaging with the Department of Health in relation to pension increases to Vhi pensions and will prioritise consideration of the pension increase proposals upon the conclusion of these engagements.