Dáil Éireann Debate, Tuesday - 30 April 2024
214. Deputy Paul Murphy asked the Minister for Transport in relation to calls from the board of CIÉ to award a pension increase as soon as possible, his views on the need for this increase; and if he will take action to ensure this is granted to retired workers who have not had a pension increase since 2008. [19331/24]
View answerAs 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.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. The Department is still in the process of considering the draft SI 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. While original indications were that a judgement would be expected in the Autumn of 2022, the matter was deferred on multiple occasions, with the judgment being delivered on 19 April 2024.
In his judgement, Mr Justice Mark Sanfey found that both CIÉ and the 1951 Scheme members were obliged to provide funding to the pension scheme to resolve any solvency issues. Justice Sanfey instructed both sides to meet to consider and agree what orders should be made on foot of the judgment ahead of a hearing date on 3 May 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
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 aspect of Deputy's question related to an increase in pension payments for members to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
