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Tuesday, 13 Nov 2012

Written Answers Nos. 209 - 219

Financial Services Sector Remuneration

Questions (209)

Pearse Doherty

Question:

209. Deputy Pearse Doherty asked the Minister for Finance in respect of the following financial institutions, Allied Irish Banks, Anglo Irish Bank, Irish Nationwide Building Society, Irish Bank Resolution Corporation, Educational Building Society, Permanent TSB, Irish Life, Irish Life and Permanent, if he will provide in tabular form the annual total of top-ups made to company pension schemes in each of the years 2008, 2009, 2010, 2011; if he wll further provide the total of top-ups made to company pension schemes to date in 2012. [49495/12]

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Written answers

I have received the following disclosure from the financial institutions of top-ups made to company pension schemes in the years requested:

AIB/EBS

2008

2009

2010

2011

2012 to date

Allied Irish Banks (including EBS)

€3.5m

€2m

€4m

€3m

€1,101m*

* The 2012 figure for AIB includes one off exceptional contributions made in 2012 as a result of the early retirement program which is required in order to reduce the cost base of the bank by over €200m per year.

AIB (including EBS) during the period in question made contributions to its pension schemes in accordance with agreed actuarial funding plans and as required by regulation. Contributions in excess of these were made to address a combination of unscheduled early retirements including ill health related circumstances and the exercise of contractual early retirement rights.

Separately the Deputy will be aware that AIB has agreed the transfer of €1.1 billion nominal of loan assets to the AIB pension fund earlier in 2012. The purpose of this was to address the deficit created in AIB’s pension fund by the early retirement and voluntary redundancy scheme that will see about 2,500 staff leave their jobs.

This transfer was not intended to reduce an existing deficit in the scheme but rather to address the deficit that would arise as a result of the staff departures that would occur as a result of the early retirement and voluntary redundancy scheme.

Permanent TSB/Irish Life

As the Deputy will be aware the State first invested in Irish Life & Permanent Group Holdings plc (now Permanent TSB Group Holdings plc) in July 2011 and as a result I am only providing figures for 2011 and 2012 YTD. Permanent TSB and Irish Life have confirmed that there have been no such payments in 2011 or year-to-date in 2012.

Anglo Irish Bank/Irish Nationwide Building Society/Irish Bank Resolution Corporation

I have been advised by IBRC that unfortunately it has not been possible to collate this information within the time available. IBRC continue to review the matter and I will forward this information to the Deputy as soon as it is made available to me.

State Properties Data

Questions (210)

Pearse Doherty

Question:

210. Deputy Pearse Doherty asked the Minister for Finance if he will provide a list detailing the property vested in the State since 8 March 2011 pursuant to section 73 of the Succession Act 1965, showing the name of the deceased and a brief description of the property. [49498/12]

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Written answers

Section 73 of the Succession Act 1965 provides that, where a person dies intestate and without known next-of-kin, the estate of that person shall be taken by the State as ultimate intestate successor.

Where an estate falls to the State under Section 73, it is administered by the Chief State Solicitor under the direction of the Attorney General. Depending on the extent and nature of the estate, this process may involve the extraction of letters of administration from the High Court and advertising for next-of-kin. When it is established that there are no known next-of-kin, the proceeds of the estate are paid into the Intestate Estates Fund Deposit Account.

No real property i.e. land or buildings has been vested in the State, under the provisions of Section 73 since 8 March 2011. However net amounts totalling €0.28million have been paid into the Intestate Estates Fund Deposit Account, representing the monetary value of estates which were escheated to the State under Section 73. This amount mainly represented the proceeds of savings held by deceased persons.

Financial Services Sector Remuneration

Questions (211)

Pearse Doherty

Question:

211. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form, with respect to the Permanent TSB, the number of the staff whose annual salary at 31 December 2011 fell in the following bands €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999. [49499/12]

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Written answers

Permanent TSB has provided me with the following information as at 31 December 2011 in a slightly restricted form to that requested to ensure compliance with legal requirements to staff under Data Protection laws:

Basic Salary €

Number of Employees*

150,000 - 199,999

10

200,000 – 399,999

9

400,000+

0

*This includes employees who subsequently TUPE’d to Permanent TSB from Irish Life during 2012.

Permanent TSB has made additional appointments to its management team since 31 December 2011 as part of its management renewal program including the appointment of a new CEO whose salary has been disclosed in Parliamentary Questions Nos. 213 to 215, inclusive, as €400,000 per annum. As he was not employed by the bank in December 2011 he is not included in the table.

Financial Services Sector Remuneration

Questions (212)

Pearse Doherty

Question:

212. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form, with respect to the Irish Life, the number of the staff whose annual salary at 31 December 2011 fell in the following bands €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999. [49500/12]

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Written answers

Irish Life has provided me with the following information as at 31 December 2011 in a slightly restricted form to that requested to ensure compliance with legal requirements to staff under Data Protection laws:

Basic Salary €

Number of Employees

150,000 - 199,999

27

200,000 – 399,999

9

400,000+

2

While not requested I can confirm that the remuneration of the individuals greater than €400,000 is already publically available in the 2011 annual report for Irish Life & Permanent Group Holdings where they were both executive directors prior to the separation of Irish Life from Permanent TSB in June 2012. The relevant annual report is available at www.permanenttsbgroup.ie.

Financial Services Sector Remuneration

Questions (213, 214, 215)

Pearse Doherty

Question:

213. Deputy Pearse Doherty asked the Minister for Finance the salary paid to the Chief Executive Officer of Permanent TSB; and if he will provide a listing and quantification of any additional benefits paid, and in respect of any expense allowance; if he will confirm if such allowances are paid only in respect of vouched and receipted expenditure. [49501/12]

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Pearse Doherty

Question:

214. Deputy Pearse Doherty asked the Minister for Finance if the Chief Executive Officer of Permanent TSB is employed on a temporary contract; if so, the date on which this contract was entered into; the termination date of this contract; if he will quantify any termination payments provided for under the contract. [49502/12]

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Pearse Doherty

Question:

215. Deputy Pearse Doherty asked the Minister for Finance if the Chief Executive Officer of Permanent TSB is employed on a continuing or permanent contract; if so, if he will quantify any termination payments provided for under the contract. [49503/12]

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Written answers

I propose to take Questions Nos. 213 to 215, inclusive, together.

I am advised by Permanent TSB that the Chief Executive Officer’s (CEO’s) salary is €400,000 per annum. The employer also contributes 15% of base salary to a defined contribution pension scheme.

I am informed that the CEO also received vouched expenses of €52,034 to compensate him for costs incurred in relocating to Ireland. The CEO has now fully relocated to Ireland. The CEO has no additional allowances but is entitled to reclaim business expenses in respect of vouched expenditure.

I have also been informed that the CEO has a permanent contract and that the employer can terminate the CEO contract by giving 11.5 months notice.

Financial Services Sector Remuneration

Questions (216)

Pearse Doherty

Question:

216. Deputy Pearse Doherty asked the Minister for Finance if he has contacted Permanent TSB, whose shares are 99.5% owned by him, requesting staff whose annual salary is in excess of €200,000 to waive 15% of their salary or such amount in excess of €200,000 whichever is the lesser; if he has, the date on which he first made this contact; the number of staff whose annual salaries were in excess of €200,000 at that date; the number of staff who acquiesced to the request for the waiver; the number of staff who refused the request for the waiver and the number of staff who have not responded to the request for the waiver. [49504/12]

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Written answers

I have not asked staff in Permanent TSB whose annual salaries are in excess of €200,000 to waive a portion of their salaries. However the Deputy will be aware that a review of remuneration practices at the Covered Institutions ( including Permanent TSB) is currently underway by my Department.

Financial Services Sector Remuneration

Questions (217, 218, 219)

Pearse Doherty

Question:

217. Deputy Pearse Doherty asked the Minister for Finance the salary paid to the Chief Executive Officer of Irish Life; if he will provide a listing and quantification of any additional benefits paid; and in respect of any expenses allowance if he will confirm if such allowances are paid only in respect of vouched and receipted expenditure. [49505/12]

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Pearse Doherty

Question:

218. Deputy Pearse Doherty asked the Minister for Finance if the Chief Executive Officer of Irish Life is employed on a temporary contract; if so, the date on which this contract was entered into; the termination date of this contract; if he will quantify any termination payments provided for under the contract. [49506/12]

View answer

Pearse Doherty

Question:

219. Deputy Pearse Doherty asked the Minister for Finance if the Chief Executive Officer of Irish Life is employed on a continuing or permanent contract; and if so if he will quantify any termination payments provided for under the contract. [49507/12]

View answer

Written answers

I propose to take Questions Nos. 217 to 219, inclusive, together.

The salary and benefits of the Chief Executive Officer (CEO) were fully disclosed on Page 62 of the 2011 Annual Report of Irish Life & Permanent Group Holdings plc which is available at www.permanenttsbgroup.ie. In summary the CEO of Irish Life & Permanent who has been CEO of Irish Life since it’s separation in June 2012, received a salary in 2011 of €500,000 and other remuneration of €86,000.

I have been informed that the policy of Irish Life is that CEO expenses are only paid in respect of vouched expenditure and that this is provided for in the CEO’s contract. I have also been informed that the CEO has a permanent contract and that no termination payments are provided for in that contract.

The Deputy should also be aware that the current CEO will be retiring shortly and that a search for a new CEO has been ongoing, internally and externally, for several months. Irish Life & Permanent Group Holdings made an announcement in this regard on 26 June 2012.

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