Thursday, 20 June 2013

Questions (77, 78, 79)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Finance if he will confirm the names of the three defined benefit pension schemes in Permanent TSB for employees who joined the bank before 2007; for each scheme, if he will state the number of current employees who are members; the number of deferred pensioners and the number of pensioners in receipt of a pension; the latest available deficit figure for each of the schemes; and if he will make a statement on the matter. [29989/13]

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Michael McGrath

Question:

78. Deputy Michael McGrath asked the Minister for Finance if he agrees or has sanctioned the decision of Permanent TSB to discontinue employer contributions to all the existing defined benefit pension schemes before the Labour Court has even adjudicated on the dispute; and if he will make a statement on the matter. [29990/13]

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Michael McGrath

Question:

79. Deputy Michael McGrath asked the Minister for Finance if there is an executive pension scheme in Permanent TSB; if so, the number of current employees who are members; the number of deferred pensioners and the number of pensioners in receipt of a pension; if the company continues to make contributions to this scheme; and if he will make a statement on the matter. [29991/13]

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Written answers (Question to Finance)

I propose to take Questions Nos. 77 to 79, inclusive, together.

I have been informed by Permanent TSB that the names of the three defined benefit pension schemes in Permanent TSB are the Irish Permanent Pension Plan, the TSB Bank Pension scheme and the Irish Permanent Executives Pension Plan. The following table which has been provided to me by Permanent TSB sets out the latest available deficits in the schemes as at 31 December 2012 and the number of members, deferred pensioners and pensioners of each of the schemes as at 31 December 2011. The Deputy should note that the split of members is fluid and can change over time.

-

TSB Bank Scheme

Irish Permanent Pension Plan

Irish Permanent Executives Pension Plan

Total

Deficit €m

144

154

12

311*

Active Members

520

1,148

6

1,674

Deferred Members

687

1,126

19

1,832

Pensioners

156

105

25

286

Total Members

1,363

2,379

50

3,792

*The total deficit of €311 million is shown on Page 129 of the 2012 Annual Report.

The Deputy will observe that there is an Executives pension plan. I am informed by Permanent TSB that the Executives pension plan closed to new members in 2001. Permanent TSB has informed me that contributions to this scheme ceased in March 2013 and the active employees are included in the Defined Contribution schemes from June 2013.

As the Deputy may be aware a hearing is scheduled at the Labour Court on 21 June 2013 in relation to this matter. As I have stated previously space should be given for those negotiations to take place in a constructive manner. It is not appropriate for me to be involved in these detailed negotiations; rather the State's industrial relations machinery should be allowed to do its job.

As the Deputy will be aware there is a Relationship Framework in place with Permanent TSB which provides the basis on which the relationship between myself and Permanent TSB is governed. Under the terms of the Relationship Framework the bank operates as an independent economic entity and matters such as a wind-up of pension schemes fall within the purview of the bank. I can inform the Deputy that I have not been asked, and am not required, under the terms of the Relationship Framework to give approval for a wind-up of Permanent TSB's defined benefit pension schemes.