asked the Minister for Transport and Power if he will relate retirement pensions of CIE employees to a retirement scheme irrespective of and independent of any social welfare and health benefits; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - CIE Retirement Pensions.
5.
Under the Transport Act, 1950, the initiative for submitting amendments to the CIE wages grades superannuation schemes rests with the board of CIE. As recommended by the commission on CIE Pensions and Sickness Benefit Payments in April, 1964, which was comprised of representatives of CIE and the trade unions with an independent chairman, pensions payable to ex-employees of CIE who retired since 1st April, 1963, are intended, together with social welfare benefits, to provide a total income of about two-thirds of retiring wages. I do not intend to recommend to CIE that the present basis for the wages grades superannuation schemes be altered.
Wages grade pensioners who retired before 1st April, 1963, have been granted a number of increases in their pensions, the most recent of which was an increase of 10s per week with effect from 1st March, 1970.
Would the Minister not agree that it is grossly unfair and unjust that when CIE pensioners reach the age of 70, because they qualify for the contributory old age pension to which they have made contributions throughout their lives, their CIE pension is cut by over 50 per cent? Surely this is rank injustice. I raised this matter some weeks ago. Would the Minister undertake to look into this whole question?
I have looked into it fully. There is no diminution in the pension which is designed to provide a total income of two-thirds of retiring wages. It is merely a cross-over from one column to another. There is an abatement of the CIE pension in lieu of the social welfare pension but there is no diminution in total pension, which is what counts.
Were the employees made aware of this fact?
They were. In fact, the one injustice in this matter was one I met fully early this year when I met the pre-1963 CIE pensioners. There was an injustice there where, for a technical reason, they did not come up to the two-thirds level I have mentioned. We gave them an increase of 10s a week to operate from 1st March, 1970. The Minister for Finance and I agreed on that and it was announced. That remedied the injustice which existed at that time.
What contribution did the employees make towards their own pension?
That is a separate question.
The CIE contribution is a rising contribution, rising to such a level that the fund has to be watched very carefully.