Dáil Éireann Debate, Wednesday - 18 January 2023
87. Deputy Niall Collins asked the Minister for the Environment, Climate and Communications when he plans to sign off on a pension increase (details supplied); and if he will make a statement on the matter. [63898/22]
View answer106. Deputy Richard O'Donoghue asked the Minister for the Environment, Climate and Communications the position regarding the sign-off of the pension increase of 3% for Eir pensioners approved by the pension trustees and Eir since 1 July 2022; and if he will make a statement on the matter. [1349/23]
View answer134. Deputy Jim O'Callaghan asked the Minister for the Environment, Climate and Communications when pensioners of Eircom will be entitled to the 3% increase in pension that was announced in July 2022; and if he will make a statement on the matter. [2312/23]
View answerI propose to take Questions Nos. 87, 106 and 134 together.
The Eircom Main Superannuation Scheme (as amended) was established by Statute for the purpose of providing for the pension liabilities of staff transferred from the former Department of Posts and Telegraphs to Telecom Éireann on its establishment on 1st January 1984, the Vesting day. The pre-vesting and post vesting liabilities of the scheme members were paid entirely out of the Main Fund until 1996.
Following extensive discussions with the Department of Finance at the time, formal arrangements for payment of the sums due in respect of pre-vesting service were settled between the company, Fund Trustees and that Department. The arrangements involved, inter alia, the establishment of the Eircom No. 2 Fund in 1999 to provide funding towards pre-vesting liabilities while the Main Fund continued to provide only for the post-vesting day liabilities arising.
The provisions of the eircom Superannuation Scheme (Section 10) stipulate that eircom Limited may grant pension increases to members as may be authorised from time to time by the Minister for Communications, Climate Action and Environment with the concurrence of the Minister for Finance
Therefore, all pension increases require authorisation at Ministerial level across two Departments; my Department and the Department of Public Expenditure and Reform (in line with delegated functions).
In October 2022, my Department received a request from the trustees for sanction for an increase of 3%, backdated to 1 July 2022. In order to consider the request, a report was requested from NewERA on the pension increase proposal. Following completion of this report, a determination will be made by my Department and the Department of Public Expenditure and Reform.
