Pension Provisions
Dail Éireann — 2026-01-13
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Alan Dillon (FG), Mayo

I thank Deputy Kenny for raising this important topic, which I am taking on behalf of the Minister for Transport, Deputy Darragh O'Brien.
From the outset, I would like to clarify that the Minister for Transport has responsibility for both policy and overall funding in relation to public transport.
As a commercial semi-State body, however, CIÉ is responsible for the provision of pension schemes for their employees - this is consistent with the pension arrangements of all other semi-State bodies. Issues in relation to CIÉ's pension schemes are primarily a matter for the trustees of the pension schemes, the CIÉ group and its employees. Decisions relating to the administration of CIÉ pension schemes, including pension increases, are a matter for the CIÉ board, guided by the relevant statutory instruments and actuarial advice.
The 1951 superannuation scheme is one of two defined benefit pension schemes operated by the CIÉ Group, the other being the regular wages staff scheme. Between the years of 2008 and 2022, neither scheme met the statutory minimum funding standard set by the Pensions Authority, which meant no pension increases could be granted during that period. While both schemes met the minimum funding standard at the end of 2023, they have grown increasingly costly, posing a serious financial risk to CIÉ. As of December 2024, the combined pension liability stood at €361 million, the largest of its kind in the State, rendering CIÉ technically insolvent. This situation is unsustainable and out of line with practice in other commercial semi-States where new employees are no longer admitted to defined benefit schemes. Furthermore, no pension increases have been provided for the past 18 years due to the fragile funding position. Given the scale of the liability, CIÉ’s primary objective has been to close both defined benefit schemes to new entrants to protect the benefits of existing members and the solvency of the CIÉ Group and to establish a new defined contribution scheme. To this end, the Minister for Transport welcomed and commended the constructive and collaborative approach taken by the trade union group and CIÉ management in reaching agreement on a pathway forward to resolve this matter. The Minister has also acknowledged the positive outcome from the ballot held from 11 July to 15 August 2025 on the CIÉ pension proposal for both CIÉ pensions schemes.
Following on from this constructive and collaborative agreement, the Department of Transport is engaging with CIÉ as well as financial advisers at NewERA and the Department of Public Expenditure, Infrastructure, Public Services, Reform and Digitalisation on the next steps in progressing the agreement and bringing CIÉ pensions onto a more stable footing for the benefit of active and retired scheme members. In line with procedures laid out in the annex on remuneration and superannuation to the code of practice for the governance of State bodies 2016, as amended in Circular 16/2021, CIÉ must provide the Minister for Transport with a formal consent request in respect of any changes to the schemes. The Department of Transport must then submit that ministerial consent request to the Minister for public expenditure, infrastructure and public service reform for consideration. Following on from the dual ministerial review, under the Transport Act 1950, a statutory public consultation process is required regarding amendments to CIÉ pension schemes where any representations from interested parties will be considered. The Minister for Transport may therefore confirm, modify or reject an amending scheme in accordance with the process set out under the Transport Act. Under section 44 of the Transport Act 1950, CIÉ is required to publish notification of any proposed change to its superannuation schemes in Iris Oifigiúil and at its head office for a period of not less than 28 days.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-01-13/debate/main
Retrieved: 2026-08-14T04:54:30+00:00
Sitting date: 2026-01-13