Pension Provisions

Dáil Éireann Debate, Wednesday - 6 May 2015

Wednesday, 6 May 2015

Questions (169)

Michael McGrath

Question:

169. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 57 of 7 November 2012, if he will confirm the arm's length and market value basis for the transaction involving the transfer of €1.1 billion of par value loan assets from the company's balance sheet to the pension fund; if he will specify the amount the bank was actually paid for the loan assets by the pension fund; if he will confirm the person who approved the transaction; and if he will make a statement on the matter. [17756/15]

Written answers

Minister for Finance

I have been informed by AIB that, this transaction was made using arm's length valuations, based on discounted expected cash flows, by two independent external parties and was agreed by both the Pension fund Trustees and the Bank.

As this was a contribution to the Scheme, there was no payment due to the Bank. Further details of the transaction can be found on page 240 of the bank's 2012 Annual Financial Report.

This transaction was approved by the Board and the Bank's deleveraging committee at the time which included non-voting observers from the Department of Finance and the Central Bank. The bank also consulted with the Pensions Board as part of the process.

Questions Nos. 170 and 171 answered with Question No. 132.