GSE 10-22 eir Superannuation Scheme
17/October/2022
Description
I wish to update you regarding several matters in respect of the eir Superannuation Scheme.
Foremost, the fund is in a strong financial position, and its recent Triennial Review indicates that it is currently financially healthy and stable. This result is primarily because of the sacrifices of members under the Pension Accord and very prudent management by the Trustees. It has enabled the eircom Superannuation Fund to continually de-risk its assets that has resulted in the fund continually achieving statutory funding requirements (Minimum Funding Standard).
Having successfully got to this point, the CWU is committed to maximising pensionable increases notwithstanding the constraints of the pay agreement. Given the current unanticipated cost of living difficulties and the current stability of the fund, we approached the company with a view to securing a pensionable increase over and above the 2% pay increase applied on the 1st of July 2022.
We are pleased to announce that we have reached agreement with the company to exercise its power under the Trust Deed to increase pensions as follows:
Pensioners and deferred
- Provide an exceptional additional one-off 1% increase of pension in the case of pensioners or 1% of benefits in the case of deferred.
Actives
- Provide an exceptional additional one-off 1% transfer from non-pensionable pay to pensionable pay.
The above pension increases are in addition to the pension increase of 2% that arises under the terms of the Accord which gives an overall result of a one-off exceptional increase of 3% to pensions for 2022. There is no doubt the increase is welcomed, particularly by pensioners at this time.
The proposals are subject to Ministerial approval.
For Pensioners and deferred, the increase will have an effective date of 1st July 2022. For active members, including those that have a DC contribution, their transfer will be made available as soon as practicable following Ministerial approval and their DB pensionable pay will be adjusted accordingly from that date.
Pension increases combined with the reversal of amounts, held for the pension levy, have delivered pension increases of 5% for pensioners, over the last 2 years, as follows:
The pension increases outlined above requires Ministerial approval. Our experience would suggest that this may take several months, however, it is our intention to engage with the relevant Departments so that sign off can be achieved as soon as possible.
I also wish to advise that Brian Duncan is retiring as the Chairperson. I wish him well and acknowledge our sincere appreciation of his good work and guidance on behalf of the members. I very much welcome the appointment of Michael Madden as Chairperson, who has a wealth of experience and who is also the Chairperson of the An Post Superannuation Scheme.
Please bring the contents of this circular to the attention of all members and retired members in your area/section.