asked the Minister for Transport and Power if he will provide, by the introduction of legislation, if necessary, that the management of the CIE pensions fund may use accumulated funds for the benefit of retired employees to compensate for increases in the cost of living.
Ceisteanna—Questions. Oral Answers. - CIE Pensions.
23.
I assume that the Deputy's question refers to the CIE Wages Grades Pension Fund.
The fund is examined once in every five years by an actuary to check on the solvency of the fund and to recommend corrective measures, if the assets are inadequate, or methods of disposal, if there is a surplus. The last such examination showed the position of the fund at 31st December, 1968 with assets of £10,971,000 and liabilities of £14,036,000 a shortfall of £3,065,000. CIE implemented the actuary's recommendation to contribute £178,623 per year to the fund in addition to the board's normal annual contribution. The assets, including interest on investments, of the fund on 31st December, 1972 were £8,300,000.
The next actuarial examination is due at the end of 1973 but CIE anticipate that liabilities will again be found to be in excess of the fund's assets.
As the fund's assets which include the pension contributions of the staff now employed by CIE are required to meet the ongoing liabilities to existing pensioners and to provide for the pensions of existing staff, they must continue to be managed in the interest of both categories.
At least Deputy Kyne is aware of the reality of the situation.