Dáil Éireann Debate, Thursday - 21 February 2013
96. Deputy Michael McGrath asked the Minister for Finance if protocols exist between his Department and the covered banks for to addressing a deficit on their employee pension schemes; and if he will make a statement on the matter. [9521/13]
View answerThe relationship between the Department and the covered banks is governed by the Relationship Framework Agreements which are published on the Department of Finance website at http://banking.finance.gov.ie/presentations-and-latest-documents/ . These provide that the State will not intervene in the day-to-day operations of the banks or their management decisions. These decisions are taken by the board and management of the individual institutions. I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as assets to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.
Decisions in relation to the pension schemes of the Banks are matters for the Boards of the institutions and the independent trustees of the individual schemes, having due regard to legal requirements under the Pensions Act. Given the importance of pension deficits to the evolution of bank capital under the forthcoming new Capital Requirements Directive and Regulations, my officials pay close attention to developments in this area.
