Louise O'Reilly (Dublin Fingal, Sinn Fein)
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85. To ask the Minister for Transport, Tourism and Sport if he will meet with a group (details supplied); and if he will make a statement on the matter. [38700/24]

Eamon Ryan (Dublin Bay South, Green Party)
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From the outset I would like to clarify that I, as Minister for Transport, have responsibility for policy and overall funding in relation to public transport. However, issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the pension schemes, the CIÉ, Group and their employees. As a commercial semi-state body CIÉ are responsible for the provision of pension schemes for their employees, this is consistent with the pension arrangements of semi-state bodies.

I am acutely aware of concerns raised by the members of both CIÉ pension schemes, regarding the lack of pension increases since 2008, especially given the higher cost of living that many are facing.

My Department is engaged with financial advisors at NewERA, the Pensions Authority, Trade Union Group Representatives, and colleagues at Department of Public Expenditure, NDP Delivery and Reform on the matter of bringing CIÉ pensions onto a more stable footing for the benefit of active, and retired scheme members. The Department receives information from pension scheme members via correspondence, all of which are considered by my officials, and I am kept regularly update on the schemes.

The CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit (c.€371 million for both schemes at end 2023) in order to meet the statutory Minimum Funding Standard (MFS) as required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.

Under the Transport Act 1950, CIÉ have initiated the statutory process by submitting an amending scheme to the Minister for Transport for review. The amending scheme is subject to Ministerial approval from both the Minister for Transport and the Minister for Public Expenditure, National Development Plan Delivery and Reform.

A statutory public consultation process is required, where any representations from interested parties will be considered. I, as Minister for Transport, may therefore confirm, modify, or reject an amending scheme in accordance with the process set out under the Transport Act. Under Section 44 of the Transport Act 1950, CIÉ is required to publish notification of any proposed change to its superannuation schemes in Iris Oifigiúil, and at its head office for a period of not less than 28 days.

I would like to clarify that decisions regarding pension increases are ultimately a matter for the CIÉ Board as informed by actuarial advice and is subject to requirements imposed by statute and scheme rules. The procedure of many commercial semi state body pension schemes, including that of CIÉ, is that it is not the Minister who grants increases, rather that the Board brings forth a proposal for an increase, and the Minister, with the consent of the Minister for Public Expenditure NDP Delivery and Reform, may then authorise the proposal. Neither I nor any of my predecessors in the role of Minister of Transport, have received a request from CIÉ for consent to a pension increase and pension increases in either of the Schemes since 2008.

Based on the current position of the 1951 Scheme, the Scheme Actuary is of the opinion that a pension increase is not currently affordable and that annual pension increases would not be sustainable into the future. The CIÉ Board has been advised by the Scheme Actuary that the current MFS position does not create sufficient headroom to grant pension increases at this time, as such a move would put the Scheme at risk of having a deficit on an MFS basis again. In line with industry norms, and in order to achieve stability and security for all members, a MFS funding level (including the Risk Reserve) of materially in excess of 100% is required to give the Scheme sufficient resources to withstand the investment losses that could result from investment market falls.

Any proposal to increase pension benefits would be dependent on the advice of the Scheme Actuary at the time an increase is proposed and must be done in agreement with the Trustees of the Schemes. Awarding discretionary pension increases remains a goal of the CIÉ Group, but it is not envisaged that any such increases can be awarded from the Schemes in the near term.

Requests for meetings can be sent to my diary team who will liaise directly with the requestor. They can be contacted at ministerdiary@transport.gov.ie.