Noel Grealish (Galway West, Independent)
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358. To ask the Minister for Public Expenditure and Reform when he will sign off on the 3% pay increase for Eircom pensioners; and if he will make a statement on the matter. [12682/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Eircom Superannuation Scheme, which is a defined benefits pension scheme, makes provision for the granting of discretionary annual pension increases, subject to Ministerial approval. On 7 October 2022, Eir wrote to the Department of the Environment, Climate and Communications requesting Ministerial Consent for a 3% increase to pensions in payment and deferred pensions under the Scheme, effective from 1 July 2022. In accordance with the Code of Practice for the Governance of State Bodies and DPER Circular 16/2021 the Department of the Environment, Climate and Communications wrote to my Department on 10 November requesting my approval to the increase.

NewERA were requested to analyse the proposal and to prepare a report. As this was the first pension increase since the eircom No. 2 Superannuation Fund, which funds pension benefits relating to service in the Department of Posts and Telegraphs, moved to a pay-as-go-model funded directly by the exchequer, terms of reference were required between the respective Departments and NewERA in advance of the production of this report. Terms of reference were confirmed on 9 February 2023 and NewERA’s report was finalised on 23 February.

Under the rules of the eircom Superannuation Scheme the approval of the Minister for the Environment, Climate and Communications and the concurrence of the Minister for Finance is required for pension increases. My recommendation for the approval of the pension increase was relayed to officials in the Department of Finance on 27 February. On 14 March the concurrence of the Minister for Finance was confirmed and this was subsequently communicated to the Department of the Environment, Climate and Communications. The payment of the increase is now a matter for Eir.