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Defined Benefit Pension Schemes

Dáil Éireann Debate, Tuesday - 14 June 2016

Tuesday, 14 June 2016

Questions (450, 454, 467)

Clare Daly

Question:

450. Deputy Clare Daly asked the Minister for Health if he has received the business case regarding Central Remedial Clinic, CRC, pensions which the CRC submitted on 1 June 2016; the case put therein; and if he has accepted it. [15900/16]

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Seán Haughey

Question:

454. Deputy Seán Haughey asked the Minister for Health if he is concerned at the sudden termination of the privately funded pension plan in the Central Remedial Clinic in Clontarf, Dublin 3; if the Health Service Executive was consulted; if he will intervene on behalf of the employees concerned; and if he will make a statement on the matter. [15910/16]

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Willie O'Dea

Question:

467. Deputy Willie O'Dea asked the Minister for Health his efforts to secure a favourable outcome for the staff of the Central Remedial Clinic who have been affected by the sudden and unexpected closure of their pension scheme; the direct contact he has had with senior management on this issue; and if he will make a statement on the matter. [15960/16]

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Written answers

I propose to take Questions Nos. 450, 454 and 467 together.

The Central Remedial Clinic (CRC) is funded by the Health Service Executive under Section 38 of the Health Act 2004 and employs in the region of 287 employees. It is understood that in the region of 45 employees are members of the funded pension scheme in question.

It is regrettable that the CRC took a decision to cease contributions to the scheme without first consulting with the HSE in relation to scheme solvency and seeking a viable alternative for the employees concerned. In particular options for restructuring the scheme should have been explored with the HSE in advance of a decision to wind up the scheme.

Following receipt of information from the CRC in relation to the wind up of the scheme, the CRC was requested as a matter of urgency, to prepare viable alternative proposals in conjunction with the HSE. A detailed business case in relation to alternative options has not yet been submitted by the HSE in relation to this matter, however I understand that on 1st June the CRC made an initial submission to the HSE which the HSE is currently considering.

When a detailed business case is received from the HSE, my Department will, as a matter of urgency, consider the proposals in conjunction with the Department of Public Expenditure and Reform. The latter is responsible for Government policy in relation to public service pensions. Pension schemes and pension terms for public servants generally require the consent of the Minister for Public Expenditure and Reform.

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