Written Answers. - Pension Reserve Fund.
Jim Mitchell
Question:
92
Mr. J. Mitchell
asked the
Minister for Finance
the total amount of money lodged in the pension reserve fund; the source of these funds, including the Eircom sale; the different components of the Eircom sale, separating amounts invested by individuals as distinct from institutions; and the value added to the fund from yield on investment.
[30209/01]
I am advised by the National Treasury Management Agency, in its capacity as manager of the national pensions reserve fund, that the current balance in the Fund is 7,687 million (£6,054 million). This is constituted of 4,528 million (£3,566 million) proceeds of the sale of the former Telecom Éireann, 1,629 million (£1,283 million) of GNP related Exchequer contributions for 1999 and 2000, and 358 million (£282 million) interest which accrued to the temporary holding fund.
On establishment of the national pensions reserve fund on 2 April 2001, this total balance of 6,515 million (£5,131 million) was transferred to that fund. Since then another 972 million (£765 million) has been paid into the fund, representing this year's 1% GNP exchequer payment, and a further 200 million (£158 million) interest has been earned. This gives a total of 7,129 million (£5,615 million) principal contributions and 558 million (£439 million) interest, bringing the fund balance up to 7,687 million (£6,054 million) as I indicated.
As regards the Eircom sale, the following provides a breakdown of the moneys received. In July, 1999, the State held an initial public offering or IPO of its shareholding in Eircom. Just over 1.7 billion shares were disposed of through that IPO, an allocation to the ESOP and the exercise of an option to acquire an additional 15% by Comsource (the vehicle used by the strategic partners KPN and Telia). Receipts amounting to some 6,156 million (£4,848 million) were lodged to the Exchequer in 1999 and 2000. Of this amount 4,210 million (£3,316 million) refers directly to the IPO. The retail-institutional split was 55% retail, 45% institutional, yielding proceeds of 2,316 million (£1,824 million) from the retail offer and proceeds of 1,894 million (£1,492 million) from the institutional offer respectively. Of these receipts of 6,156 million (£4,848 million), a total of 4,528 million (£3,566 million) was paid into the pension reserve fund via the temporary holding fund and 1,587 million (£1,250 million) was used to discharge the Exchequer liability in respect of pension entitlements of Eircom and An Post employees. The residual amount, 41 million (£32 million), accrued to the Exchequer surplus in 2000.
