Central Bank of Ireland

Tuesday, 22 September 2015

Questions (352, 364)

Michael McGrath

Question:

352. Deputy Michael McGrath asked the Minister for Finance his views on the funding arrangements for the Central Bank of Ireland pension scheme; and if he will make a statement on the matter. [31494/15]

View answer

Pearse Doherty

Question:

364. Deputy Pearse Doherty asked the Minister for Finance if the Central Bank of Ireland's defined benefit pension scheme is performing; if extra moneys will be allocated to the scheme; and if he will make a statement on the matter. [31577/15]

View answer

Written answers

Minister for Finance

I propose to take Questions Nos. 352 and 364 together.

The Central Bank pension scheme (The Central Bank & Financial Services Authority of Ireland Superannuation 2008) mirrors public service pensions both in terms of contribution and benefits. The public service covers the cost of pensions from current funds whereas the Central Bank funds pensions through a dedicated pension fund. As a consequence, the cost of the Bank's pension scheme is accounted for in accordance with the prevailing Financial Reporting Standards (FRS17 Retirement Benefits) which leads to higher pension charges in the current low bond yield environment. The Central Bank Superannuation Scheme fully satisfies the Pensions Authority's Funding Standard and has done so every year since it was established in 2008. It is also projected to satisfy the additional Funding Standard Reserve Requirement being introduced from 2016.