Dáil Éireann Debate, Tuesday - 16 April 2013
284. Deputy Gerald Nash asked the Minister for Finance if his attention has been drawn to the fact that AIB is actively rehiring former staff who left the organisation under the terms of early retirement and severance schemes despite the fact that these schemes prevented former staff who left from returning to the bank for a period of years; and if he will make a statement on the matter. [16630/13]
View answer295. Deputy Gerry Adams asked the Minister for Finance if his attention has been drawn to the practice within AIB of rehiring bank executives who take early retirement or voluntary severance packages and transfering them to another section of the bank in another country within a three year period; his views on whether this practice is justified; and if he will make a statement on the matter. [16861/13]
View answerI propose to take Questions Nos. 284 and 295 together.
AIB has informed me that as part of the Bank's exit process, all early retirement and voluntary severance offers include a clause which precludes the staff member from being re-hired by AIB or any of its subsidiaries, either directly or indirectly through a third party. In the case of early retirement the restriction is open ended. In the case of voluntary severance the restriction applies for a period of four years from the date of termination. Controls are in place within AIB to ensure that any such re-hires do not occur on the AIB payroll.
I understand that AIB has retained the services of a total of four individuals post retirement, immediately after their exit dates, solely for the purpose of concluding two projects of significant consequence from a regulatory and financial standpoint. These individuals were subject matter experts, who were engaged on the projects prior to retirement. Permission was sought from the Revenue Commissioners in advance of their appointment. This is in the context of c.1,700 staff leaving AIB in 2012 as part of the early retirement and voluntary severance programme.
