The National Pensions Reserve Fund Act 2000 provides for an annual contribution from the Exchequer to the National Pensions Reserve Fund equivalent to 1% of GNP. The amount to be paid in respect of 2009 is €1.584 billion. The contribution is normally paid quarterly and the payment in respect of the first quarter of 2009 was made in March.
The Government announced on 11 February 2009 that the recapitalisation of Allied Irish Bank and Bank of Ireland through the purchase of preference shares to the value of €3.5 billion in each bank would be funded through the National Pensions Reserve Fund, with €4 billion coming from the Fund's resources and €3 billion to be provided by frontloading the Exchequer contributions for 2009 and 2010. The recapitalisation of Bank of Ireland was effected on Tuesday, 31 March 2009 from the Fund's resources. The balance of this year's contribution and the further payment of €1.416 billion will be paid to the Fund for the recapitalisation of Allied Irish Bank when that bank has completed the necessary internal procedures to approve the issuance of preference shares. This is expected to be in early May.