As the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.
As of end December 2022, the Balance Sheet deficit for the two defined benefit pension schemes operated by CIÉ, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”), was €396.5m. While the funding position improved during 2022, and the 1951 scheme now meets the MFS, the RWS currently does not meet the MFS and the funding level is marginal and subject to future market volatility.
In relation to RWS, I signed three Statutory Instruments related to the RWS on 6th July 2022, with an operative date of 18th July 2022.
Regarding the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. This is being considered by the Department in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days, and the proceedings are next listed for the 24th of April 2024.
Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.
Accordingly, I have forwarded the Deputy's question to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
