Defined Pension Benefit Scheme Issues

Dáil Éireann Debate, Wednesday - 20 March 2013

Wednesday, 20 March 2013

Questions (215)

Michael McGrath

Question:

215. Deputy Michael McGrath asked the Minister for Finance if his permission has been sought by the trustees of pensions' schemes of any of the covered banks to sell or otherwise deploy sufficient assets and use the proceeds of those asset sales or transfers to address the pension deficit when they exist in a manner consistent with the treatment extended by the trustees of the AIB pension scheme to the deficit in that bank's pension scheme; and if he will make a statement on the matter. [13765/13]

Written answers

Minister for Finance

As the Deputy will be aware, all three of the remaining Covered banks have defined benefit pension deficits to varying degrees. These are liabilities of the banks to which there are attached numerous legal and regulatory responsibilities. Both AIB and Bank of Ireland have started consultations with their staff representatives with a view to finding a workable and efficient solution to these deficits which takes account of the need to preserve capital and restore each bank to profitability as fast as possible. They are engaging with my officials about solutions but, at present, no discussion has progressed to the point where any permissions are required from me. The asset transfer conducted by AIB in 2012 was directly linked to the bank’s desire to implement a large combined early retirement and voluntary redundancy scheme that will generate significant annual cost savings for the bank over time.