Dáil Éireann Debate, Tuesday - 16 April 2013
243. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the current deficit in the pension scheme of Bank of Ireland, in which he owns 15% of the shares and in which he owns a substantial preference shareholding; and if addressing the deficit may result in demands to the State to provide additional capital. [16286/13]
View answerAccording to the 2012 Annual Report of Bank of Ireland which was published last month, the pension deficit at 31 December 2012 was €1.2bn, an increase of €0.8bn from 2011. The primary driver of this increase was a reduction in discount rates due to the significant fall in yields on high-quality corporate bonds rather than the underlying scheme assets which actually appreciated in value. It is my understanding that the Chief Executive Officer of the bank is currently in discussions with his staff and the pension trustees regarding options to address the pension deficit. I will await the outcome of these discussions, however, I do not envisage the State having to inject more capital into the bank as a result.
