Dáil Éireann Debate, Tuesday - 21 May 2024
188. Deputy John Brady asked the Minister for Transport to provide details of the Government’s response to a judgment in respect of the CIÉ 1951 pension scheme (details supplied); and if he will make a statement on the matter. [22510/24]
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 consider what orders should be made on foot of the judgment ahead of a hearing date on 14th June 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
