Dáil Éireann debate -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - Pension Provisions.

Ruairí Quinn

Question:

118 Mr. Quinn asked the Minister for Finance the plans, if any, he has to make additional allocations to semi-State pension funds similar to An Post and Telecom Éireann funds; if it is intended to make additional allocations to the small loans savings account; and if he will make a statement on the matter. [28273/98]

Minister for Finance (Mr. McCreevy)

Under the Irish Aviation Authority Act, 1993, the Minister for Finance has liability for the pensions costs of staff of the authority in respect of service given in the Civil Service before the establishment of the Authority on 1 January, 1994. The Act requires that the liability be determined and discharged on a funded basis before 31 December

2000. While payments have been made since 1994 on a pay-as-you-go basis to discharge the current liability as it arose, no capital payments to meet the actuarial liability have yet been made. It is proposed, following consultations which are ongoing with the authority and with the trustees of the pension fund, to make a payment of £60 million on account, before the end of 1998, towards the discharge of the actuarial liability. The balance, which has still to be determined and which will discharge the matter fully, will be paid within the time limit laid down by the Act. Provision for meeting this liability in 1998 was reflected in the expenditure aggregates in the recently published White Paper on Receipts and Expenditure.

It is not proposed to make any additional payments in respect of any other outstanding pension liabilities in 1998. The White Paper also reflected a payment of £69 million to the small savings reserve fund. No decision has been taken to make further payments into the fund since the White Paper was published.