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Pension Provisions

Dáil Éireann Debate, Tuesday - 3 March 2026

Tuesday, 3 March 2026

Questions (351)

Ken O'Flynn

Question:

351. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the total annual Exchequer funding currently provided in respect of the No. 2 Fund of the Eircom Superannuation Scheme; whether pension increases under that fund require approval from the Minister for Finance; whether any Exchequer exposure arises in respect of the main fund; whether the Minister has received representations regarding erosion of purchasing power for pensioners under this scheme; and whether a review of indexation policy has been considered. [16738/26]

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Written answers

Section 46 of the Postal and Telecommunications Services Act 1983, in conjunction with Section 10 of the Eircom Superannuation scheme rules, make provision for the granting of a discretionary annual pension increases for relevant scheme members, subject to the relevant Ministerial approval.

Under the scheme rules, any increases in pensions from the Eircom Superannuation Scheme must be authorized by both the Minister for Culture, Communications and Sport, and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, with the concurrence of the Minister for Finance.

Although the consent of the Minister for Public Expenditure and the concurrence of the Minister for Finance is required, it is the Minister for Culture, Communications and Sport, as the authorising Minister who retains final decision-making authority for approving and releasing State-funded pension increases under the Eircom Superannuation Scheme.

The Eircom Superannuation Scheme Main Fund (No. 1 Fund) provides for pension benefits in respect of service post-vesting day of Telecom Éireann on 1st January 1984. The Minister for Finance has no liability for the No. 1 Fund.

The Eircom Superannuation Scheme No. 2 Fund was established at the time of the privatisation of Eircom in 1999 as a separate fund within the pension scheme to provide for pension benefits accrued prior to vesting by former civil service servants who had transferred to Telecom Éireann on vesting day from the Department of Posts and Telegraphs. The “No. 2 Fund” is funded on a quarterly pay-as-you-go basis by the Exchequer.

Details of the annual Exchequer funding currently provided in respect of the No. 2 Fund of the Eircom Superannuation Scheme are presented in the table below:

Year

Total Payment Amount

2021

€81,180,000.00

2022

€78,650,000.00

2023

€75,290,000.00

2024

€73,120,000.00

2025

€73,170,000.00

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