Written answer
Pension Provisions
Uisce Éireann’s Ex-Ervia scheme requires ministerial approval for pension increases, while its Ex-Local Authority scheme follows local-authority arrangements without explicit consent.
74. Deputy Ken O'Flynn asked the Minister for Housing, Local Government and Heritage if he will set out the statutory basis under which Irish Water (Uisce Éireann) may award pension increases to members of its funded defined benefit pension schemes without requiring ministerial authorisation; if he will confirm that Irish Water is not subject to the approval process outlined in Circular 16/2021 for commercial semi state bodies; the reason for this divergence in governance compared with other State bodies operating funded DB schemes; and if he will make a statement on the matter. [67349/26]
Comment on this
Uisce Éireann operates two defined benefit pension schemes, namely the Uisce Éireann (Ex-Ervia) Scheme and the Uisce Éireann (Ex-Local Authority) Scheme. Each scheme was established pursuant to Ministerial consent and operates under a distinct legislative and governance framework.
For the Ex-Ervia Scheme, the award of pension increases is at the discretion of the employer and is subject to my consent as Minister for Housing, Local Government and Heritage, in conjunction with the consent of the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. This requirement is explicitly set out in the Trust Deed and Rules governing the scheme and aligns with the approval process set out in the Department of Public Expenditure and Reform Circular 16/2021.
Employees who transferred to Uisce Éireann from local authorities become members of the Uisce Éireann (Ex-Local Authority) Scheme. Section 28 of the Water Services (No.2) Act 2013 (as amended) provides that these pension benefits will be no more and no less favourable than those that would have applied had the employee remained in local authority employment.
Accordingly, the Trust Deed for the Ex-Local Authority Scheme does not reference Ministerial consent for pension increases but provides that benefits are aligned with those payable within the local authority framework. In practice, pension increases under this scheme mirror those granted across the wider local authority and public service sector.