Tuesday, 26 February 2013

Questions (228)

Michael McGrath

Question:

228. Deputy Michael McGrath asked the Minister for Finance the number of retired executives of Bank of Ireland, if any that have been written to by the bank asking that they consider voluntarily foregoing a portion of their pension; the number that responded positively, negatively, or not at all; the number of the retired executives have since actually foregone some of their pension entitlement; and the overall value of the pensions entitlements that have been foregone by retired executives of the bank. [10297/13]

View answer

Written answers (Question to Finance)

As the Deputy is aware, I have no role in the day-to-day commercial and operational decisions of Bank of Ireland. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a minority shareholder in Bank of Ireland, the Minister must ensure that the bank is 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. The Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions.

These frameworks are published on the Department of Finance website at http://banking.finance.gov.ie/presentations-and-latest-documents/.

The Bank has advised me:-

"that it has commenced a process of engagement in connection with the deficits in defined benefit pension schemes to which the Bank is sponsor.

The Bank will not be commenting on aspects of this engagement unless it considers it necessary to do so as part of the wider engagement process or is considered appropriate as a market reporting obligation or a market update objective."