Dáil Éireann Debate, Wednesday - 7 November 2012
56. Deputy Michael McGrath asked the Minister for Finance if he or his officials have had direct contact with Allied Irish Bank in relation to the commitment given by the Chairman of the bank at the last annual general meeting to contact the former chief executives of the bank to request a voluntary reduction in their pension entitlements; and if he will make a statement on the matter. [49038/12]
Amharc ar fhreagraI understand that Department of Finance officials have been in contact with AIB in relation to this matter. I am informed that AIB has written to former senior executives at the bank requesting a voluntary contribution or reduction in their pension. This process is ongoing as other individuals are written to including former staff of EBS. I understand that this is a technically complex matter from a Tax and Revenue perspective which will require further analysis. However, at a minimum, former executives should they choose could make an after-tax contribution of a portion of their pension. As this is a voluntary request and given that there is a statutory prohibition on reducing pension amounts once the relevant pension is in payment, it will be a matter for the individuals concerned to agree to the amount and scope of the proposal.
