Eamon Ryan (Dublin Bay South, Green Party)
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From the outset I would like to clarify that I, as Minister for Transport, have responsibility for policy and overall funding in relation to public transport. Issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the pension schemes, the CIÉ, Group and their employees.

Concerning pension increases for CIÉ pensioners, it is understood that an increase for pensioners would only be possible when the respective Schemes are capable of sustaining such increases. For the first time in many years both CIÉ pension Schemes now meet the Pensions Authority’s Minimum Funding Standard (MFS), but the scheme deficits are still significant. The MFS indicates both schemes ability to ‘wind-up’ as it currently stands, as opposed to the ability to fund an increase in pension benefits.

The CIÉ Board has been advised by the respective Scheme Actuary that the current MFS position does not create sufficient headroom to grant pension increases at this time, as such a move would put the Schemes at risk of having a deficit on an MFS basis again. In line with industry norms, and in order to achieve stability and security for all members, a MFS funding level (including the Risk Reserve) of materially in excess of 100% is required to give the Schemes sufficient resources to withstand the investment losses that could result from investment market falls.

Any proposal to increase pension benefits would be dependent on the advice of the Schemes Actuary at the time an increase is proposed and must be done in agreement with the Trustees of the Schemes. Awarding discretionary pension increases remains a goal of the CIÉ Group, but it is not envisaged that any such increases can be awarded from the Schemes in the near term.

Accordingly, I have forwarded the Deputy's question to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.