Dáil Éireann Debate, Thursday - 30 March 2023
107. Deputy Donnchadh Ó Laoghaire asked the Minister for the Environment, Climate and Communications his views on the Telecom Éireann pension fund; and if former Telecom Éireann workers will soon see an increase under the pension scheme, due to them since July 2022. [15826/23]
View answerThe 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; this Department and the Department of Public Expenditure, National Development Plan 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, which was received at the end of February. This Department received confirmation of concurrence from both the Minister for Public Expenditure, NDP Delivery and Reform and the Minister for Finance to sanction the request on 15 March 2023, and the approval of the proposed increase was communicated to the company by email and written correspondence on the same day. My Department understands the increase will be processed without undue delay.
