asked the Minister for Transport and Power whether he is aware that the total payments by way of pension made in the year 1970 under the CIE superannuation scheme, 1951 are about £58,000 from an income of about £650,000; and what purpose is served by keeping a capital sum of more than £5,000,000 stagnant in that scheme during a period of violent inflation.
Ceisteanna—Questions. Oral Answers. - CIE Superannuation Scheme.
8.
The fundamental principle of any pension fund is that when the members come to retire there will be sufficient money in the fund to guarantee payment of pensions for the remainder of their lives. The vast bulk of the CIE 1951 fund represents the superannuation savings of serving staff towards their future pensions.
This scheme was introduced comparatively recently—in 1951—and was open only to employees who were not members of other superannuation schemes within the company before that date. Hence the vast majority of members are not yet even approaching retiring age. The present number of pensioners is only 186.
The fund is examined by an actuary once every five years. The last examination was in respect of the five year period ended 31st December, 1966. The total assets of the fund at that date were £6,951,000 and the liabilities were £7,128,000. The assets of the fund reflect the high membership of the fund—more than 2,400 staff. The high membership, however, also accounts for the extent of the liabilities of the fund. It will be seen that, so far from there being surplus moneys in the fund, there was a deficit of assets from liabilities of £177,000.