Dáil Éireann Debate, Tuesday - 31 January 2012
136 Deputy Peter Mathews asked the Minister for Finance, further to Parliamentary Question No. 112 of 29 November 2011, if he will clarify a matter (details supplied) on the banks’ pension funds; and if he will make a statement on the matter. [5348/12]
Amharc ar fhreagraAs the Deputy will be aware none of the institutions in receipt of State Aid has used State Funds directly to offset deficits in defined benefit pension schemes. This assurance, provided by the banks, would cover the direct transfer of funds provided in State Aid towards the reduction of deficits in the banks' pension schemes. The institutions do contribute, as required by law and regulation, to pension schemes in the normal way. Deficits that exist in pension schemes in the institutions are being reduced generally through increased employee contributions and reductions in future benefits. The Deputy will appreciate, however, an institution's funds are not generally segregated by source for distribution in specific ways. It is very difficult in terms of a bank's funding to categorically state that State Aid does not indirectly find its way through normal employee contribution or pre-State Aid contractual arrangements into pension funds. However, in terms of the principal at issue I am assured by the institutions that none of the institutions has used State funds directly to off-set deficits in defined benefit pension scheme funds.
