S.I. No. 115/1996 - Córas Iompair Éireann Pension Scheme For Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1996

I, MICHAEL LOWRY, Minister for Transport, Energy and Communications, in exercise of the powers conferred on me by section 44 of the Transport Act, 1950 (No. 12 of 1950), as amended by the Tourism, Transport and Communications (Alteration of Name of Department and Title of Minister) Order, 1993 ( S.I. No. 17 of 1993 ), hereby, after consultation with the Minister for Finance, order as follows:

1. This Order may be cited as the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1996.

2. In this Order, "the amending scheme" means the scheme amending the Córas Iompair Éireann Pension Scheme for Regular Wages Staff prepared by Córas Iompair Éireann and submitted to the Minister for Transport, Energy and Communications under section 44 of the Transport Act, 1950 (No. 12 of 1950), and set out in the Schedule to this Order.

3. (1) The amending scheme is hereby confirmed and shall, subject to paragraph (2), be deemed to have come into operation on the 1st day of January, 1994.

(2) ( a ) Article 13 of the amending scheme shall be deemed to have come into operation on the 17th day of January, 1995, and

( b ) Article 17 of the amending scheme shall be deemed to have come into operation on the 1st day of April, 1993.

SCHEDULE

CÓRAS IOMPAIR ÉIREANN PENSION SCHEME FOR REGULAR WAGES STAFF (AMENDMENT) SCHEME, 1996.

Interpretation.

1. (1) In this amending Scheme the following words and expressions shall have the meanings hereby assigned to them unless there is something inconsistent in the subject matter or the context repugnant to such construction:

"the existing scheme" means the Córas Iompair Éireann Pension Scheme for Regular Wages Staff confirmed by S.R. & O. No. 242 of 1945 and subsequently amended by the amending schemes confirmed by statutory instruments numbered 115 of 1949, 34 of 1955, 226 of 1957, 56 of 1961, 48 of 1965, 7 of 1967, 58 of 1969, 77 of 1971, 252 of 1974, 288 of 1977, 74 of 1980, 181 of 1982, 132 of 1985, 288 of 1985, 319 of 1985, 55 of 1987, 117 of 1988, 258 of 1988, 31 of 1989, 233 of 1991, 120 of 1992 and 420 of 1992.

"the former schemes" means

( a ) the scheme confirmed by S.R. & O. No. 55 of 1945 and amended by an amending scheme confirmed by order of the Minister for Industry and Commerce on the 31st day of October, 1957, and subsequently further amended by amending schemes confirmed by S.I. No. 57 of 1961 , 49 of 1965, 8 of 1967, 59 of 1969, 78 of 1971, 250 of 1974, 289 of 1977, 75 of 1980, 182 of 1982, 289 of 1985, 320 of 1985, 56 of 1987, 196 of 1988, 259 of 1988, 121 of 1992 and 318 of 1995.

( b ) the scheme mentioned in the agreement scheduled to the Great Northern Railway Act 1958 as amended by amending schemes confirmed by S.I. Nos. 53 of 1962, 50 of 1965, 9 of 1967, 60 of 1969, 81 of 1971, 251 of 1974, 291 of 1977, 76 of 1980, 183 of 1982, 290 of 1985, 321 of 1985, 54 of 1987, 195 of 1988, 260 of 1988, 30 of 1989, 232 of 1991, 122 of 1992 and 317 of 1995 and

( c ) the scheme established by a trust deed dated 16 November 1943 between Dublin United Transport Company Limited and Transport Subsidiary Limited and amended by trust deeds dated 23January 1958, 18 April 1962, 6 May 1965, 20 July 1977 and 31 March 1987.

"the operative date" means the 1st day of January 1994 in respect of every Article of this amending Scheme other than Article 13 and Article 17 of this amending Scheme, and means the 17th day of January 1995 in respect of Article 13 of this amending Scheme and the 1st day of April 1993 in respect of Article 17 of this amending Scheme.

"this scheme" means the existing Scheme as hereby amended.

"vested benefit" means a benefit arising under Article 10 of this amending Scheme.

"early retirement pension" means a pension arising under Article 11 of Statutory Instrument No. 420 of 1992 .

"the Pensions Act" means the Pensions Act, 1990 (No. 25 of 1990), and includes any statutory amendment or re-enactment of that Act for the time being in force and any regulations made thereunder.

"qualifying service" in accordance with definition of the same term contained in the Pensions Act means service in the employment of the Board during membership of this scheme or the former schemes, and service which under the Superannuation and Pensions Act, 1963 (No. 24 of 1963), has been given with an approved organisation and is to be treated as pensionable for the purposes of this scheme, but does not include notional purchased service.

"revaluation percentage" means the percentage (if any) prescribed under section 33 (4) of the Pensions Act, in respect of each revaluation year.

"revaluation year" means each year beginning on 1 January.

(2) In this amending Scheme unless otherwise expressly stated the words and expressions used shall have the meanings assigned to them by the existing Scheme.

Continuance of the Existing Scheme.

2. (1) Subject as hereinafter specifically provided the benefits provided by the existing scheme shall continue to be paid or be payable under and in accordance with the terms thereof and without alteration to every existing pensioner whose pension commenced prior to the operative date and to the personal representative of any deceased pensioner or member if the deceased's pension commenced or death occurred prior to the operative date.

(2) Subject as hereinafter specifically provided nothing in this amending scheme shall affect the rights of any of the persons mentioned in the preceding sub-Article, nor shall this amending scheme affect any subsisting right or liability accrued to or incurred under the existing scheme by any person who retired from or left the service of the Board or died prior to the operative date.

(3) Special and deferred pensions arising under Article 2 of statutory instrument No. 56 of 1961 and deferred reduced pensions arising under Article 9 (3) of statutory instrument No. 226 of 1957 (as inserted by statutory instrument No. 288 of 1985 ) now payable or at any time to become payable shall not be affected by this amending scheme.

Amendment of the Existing Scheme.

3. Subject to the provisions of Article 2 of this amending scheme, the existing scheme shall be amended with effect on and from the operative date so as to conform to the provisions hereinafter contained and every provision of the existing scheme which is inconsistent with the provisions hereinafter contained shall cease to have effect.

Assumption of liabilities of the former schemes.

4. With effect from the operative date:

(1) all members of the former schemes shall become members of this scheme:

(2) periods of service taken into account for the provision of benefits in respect of membership of the former schemes shall be taken into account in determining benefits in respect of membership of this scheme;

(3) all liabilities under the former schemes to and in respect of pensioners and otherwise shall be assumed as respects this scheme.

Extension of obligations of the Fund.

5. With effect from the operative date all pensions in payment at the operative date and paid by the Board supplementary to pensions paid under this scheme or under the former schemes or otherwise on an ex gratia basis to or in respect of persons who were formerly members of the Wages Staff shall become obligations of the fund, and shall be paid in the amount, for the terms and otherwise upon the conditions applying to them immediately before the operative date.

6. Article 7 of the schedule to statutory instrument No. 115 of 1949 shall be deleted and the following Article substituted:

"7. (1) In every year there shall be a contribution from the Board to the fund of such sum as the Board after consulting the actuary determines to be necessary to support and maintain the solvency of the fund.

(2) The contributions by the Board to the fund in any year shall be paid to the trustees for the purposes of the scheme and may be so paid by one payment or in equal or unequal instalments and at such time or times as shall appear expedient to the Board.

(3) Notwithstanding the foregoing, the Board retains the right to vary the contributions payable by the members under Article 7 of the scheme amending the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (confirmed by the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1996) and, in particular, if the contribution determined by the Board under paragraph (1) to be necessary to support and maintain the solvency of the fund will in any period exceed 2.7 times the contributions payable by the members during that period, the contributions payable by the Board and the members shall be reviewed."

7. Article 7 of the schedule to statutory instrument No. 420 of 1992 shall be deleted and as from the operative date all members shall contribute by payment into the fund at the rates determined by reference to columns (1) and (6) of Table A in Article 8 of this amending scheme.

8. Article 9 of the schedule to statutory instrument No. 420 of 1992 , shall be deleted and in respect of any pension which commences on or after the operative date under this scheme, the full pensions (including alternative full pensions and the total payments) for all members shall be the amounts determined by reference to columns (1) to (5) of Table A hereunder.

TABLE A

For the purpose of this Table "X" means the number of complete units of £5. 00 by which the Basic Weekly Wage exceeds £200.01.

9. Article 11 of the schedule to statutory instrument No. 420 of 1992 shall be amended by the deletion of the words "in the first instance" and of the words "but then reduced to reflect early payment by such amount as the Board, after consulting the actuary, considers to be appropriate", and by the substitution of "early retirement pension" for "discounted pension" wherever it appears, and by the addition to the Article of the following sentence:

"Upon the death, within five years of the date of his leaving service, of a pensioner receiving or entitled to receive an early retirement pension, there shall be paid to his personal representative in discharge of all further obligations under the fund a lump sum equal to the relative proportion of the appropriate weekly pension for life (Column 2 of Table A) multiplied by 260 less the total of payments in respect of the pension then already made, the relevant proportion being that proportion which was used in calculating the early retirement pension."

Leaving Service.

10. (1) Any member of this scheme who ceases to be employed by the Board (otherwise than in accordance with Article 10 of statutory instrument No. 226 of 1957 or due to his death in service) after having completed five years' qualifying service without being entitled to a pension under any other Rule of or Article governing this scheme shall be entitled to the benefits described in paragraph (a) below or, if he so elects by written notice to the trustees at any time before payment of benefits under paragraph (a) begins, to the benefits described in paragraph (b) below, provided that if he has previously received a reduced pension, the benefits otherwise payable under this sub-Article shall be reduced by such amount as the actuary shall recommend.

(a) A vested benefit equal to the fraction, which has accrued at the date he ceases to be employed, of the pension and retirement gratuity to which he would be entitled upon retirement at the age of 60, the accrued fraction to be calculated in accordance with the second schedule to the Pensions Act upon a basis approved by the actuary.

(b) Benefits consisting of:

(i) a refund of his contributions paid before 1 January 1991 without interest subject to the provisions of sub-Article (4) of Article 11 of Statutory Instrument No. 226 of 1957 (as renumbered by Article 4 of statutory instrument No. 7 of 1967 ) and subject to the deduction of tax at the appropriate rate under section 21 of the Finance Act 1972 or under any subsequent statute replacing or re-enacting the said section, plus

(ii) a vested benefit equal to the fraction, which has accrued after 1 January 1991 at the date he ceases to be employed, of the pension and retirement gratuity to which he would be entitled upon retirement at the age of 60, the accrued fraction to be calculated in accordance with the second schedule to the Pensions Act, upon a basis approved by the actuary.

(2) A vested benefit shall come into payment on the former member's 60th birthday subject to application by the former member. Upon the death, within five years after his 60th birthday, of a former member receiving or entitled to receive a vested benefit, there shall be paid to his personal representative in discharge of all further obligations under the fund a lump sum equal to the weekly amount of the pension comprised within his vested benefit multiplied by 260, less the total of payments in respect of the pension then already made.

(3) Wherever there is a period of at least one year between:

(a) the date a member leaves the service of the Board or 1 January 1996, whichever is the later, and

(b) that member's 60th birthday or the date of his death, whichever is the earlier,

then a vested benefit to which the member becomes entitled under sub-Article (1) shall be increased at the end of each revaluation year by the amount of the revaluation percentage.

No revaluation shall be made under this sub-Article after the earlier of:

(i) the date when payment of the pension begins, or

(ii) the date of the member's death.

Reference in this Article to the amount of a benefit at any date after the member's date of leaving the service of the Board is a reference to the benefit as increased to that date unless expressly stated otherwise.

(4) At any time before payment of a vested benefit begins, the member entitled thereto may request that a transfer payment be made out of the fund to the fund of any other retirement benefits scheme which is treated as an exempt approved scheme for the purposes of Chapter II of Part I of the Finance Act, 1972 (No. 19 of 1972), or to an insurance policy or contract of insurance approved for the purposes of the said Chapter II (a "retirement arrangement"), or the trustees may, subject to the requirements of the Pensions Act, determine to effect such a transfer. As soon as practicable after the request or determination, an amount which the trustees on the advice of the actuary determine to be equivalent to the benefit shall be transferred to that retirement arrangement, and the trustees or life office operating that retirement arrangement shall be given all information needed to administer the amount transferred, and the benefits thereby secured, in accordance with the requirements of the Pensions Act, and of the Revenue Commissioners under Chapter II of Part I of the Finance Act, 1972 (No. 19 of 1972). Following the transfer the member concerned shall have no further entitlement under this scheme.

(5) On the death of a former member entitled to a vested benefit before payment begins and before any tranfer payment has been made under paragraph (4) of this Article there shall be paid to his personal representative out of the fund upon his application such amount as the trustees on the advice of the actuary determine to be equal at the date of death to the value of the benefit granted to the former member.

(6) Subject always to the requirements of the Pensions Act, if the Board notifies the trustees that any debt is due to the Board from the member, the trustees shall reduce any entitlements under this Article by an amount which the actuary advises them to be equivalent to the amount as notified to them of the debt. The amount of the reduction shall be paid by the trustees to the Board, whose receipt shall discharge the trustees for it, and the benefits, when they come into payment, shall be paid only in the reduced amount.

(7) Article 11 (1) of statutory instrument No. 226 of 1957 as inserted by Article 10 of statutory instrument No. 117 of 1988 shall be amended by the addition immediately after the words "without becoming entitled to any pension" of the words "and without becoming entitled to a vested benefit".

(8) Article 11 (2) of statutory instrument No. 226 of 1957 shall be deleted, and the following substituted:

"If any former member of this scheme who has received a refund of his contributions under Article 11 (1) of statutory instrument No. 226 of 1957 as inserted by Article 10 of statutory instrument No. 117 of 1988 or under paragraph (1) (b) (i) of this Article or who is entitled to a vested benefit is subsequently re-employed by the Board he shall, if and when he is re-appointed to the regular wages staff, not be entitled merely by reason of such reappointment to be readmitted to membership of the scheme, but the Board may, at its discretion, and whether or not such former member exceeds the age limit herein prescribed, readmit him to membership upon such terms and conditions as the Board may think proper, including, if the Board so thinks fit, a condition that such former member shall pay an amount into the fund equivalent to the total contributions (including the amount of any contributions already refunded together with compound interest at such rate as the Board thinks appropriate) which he would have made to the fund had he continued in the service of the Board without interruption. Upon readmission of any former member under the provisions of this sub-article, the Board may direct that his service shall, for the purpose of the scheme, be deemed to have been continuous notwithstanding its interruption. Any existing entitlement to a vested benefit, within the meaning of Article 1 (1) of the scheme amending the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (confirmed by the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1996), shall be extinguished save that the amount of the benefits to which he subsequently becomes entitled shall be increased if necessary so that they are, in the opinion of the actuary, at least equivalent to the said vested benefit which he would, but for this sub-Article, have received."

Review of pensions.

11. Prior to 1 July in each year following the confirmation of this amending scheme, the Board shall, in consultation with the actuary, review the rate of pension in payment under this scheme (other than vested pensions which have come into payment) with a view to increasing the rate of payment, having regard to any maximum increase in pensions authorised by the Minister, with the consent of the Minister for Finance, for the purpose of ensuring that public service norms as to pension increases are not exceeded, having regard to increases in rates of pay for the employees of the Board, the financial condition of the fund and any other matter which the Board considers to be relevant. For the purpose of its review the Board shall obtain from the actuary advice on the cost of increasing the rate of payment and the effect such increase would have on the financial position of the fund. Following its review, the Board shall determine the amount or amounts or rate or rates of increase to be made to each pension in payment under the scheme (other than vested pensions which have come into payment) with effect from the next 1 July, and shall notify the trustees accordingly. Unless the trustees determine, after consulting the actuary, that no such increases should be paid, or that all such increases should be reduced rateably, they shall, subject always to any maximum increase authorised by the Minister with the consent of the Minister for Finance as aforesaid, pay the increases with effect from the next 1 July. Increases granted under this rule shall be disregarded for the purposes of calculating the amount of any lump sum benefit payable upon the death of a pensioner.

Retirement gratuity.

12. When a member of this scheme who retires or leaves service on or after 1 January 1994 becomes entitled to a full pension, a reduced pension or an early retirement pension or to receive payment of a deferred pension or a deferred reduced pension arising under Article 9 (3) of statutory instrument No. 226 of 1957 (as inserted by statutory instrument No. 288 of 1985 ), he shall be paid a retirement gratuity equal to 104 times the weekly rate of such pension, less the amount of any gratuity which he may previously have received under this Article.

13. Article 9 (3) of statutory instrument No. 226 of 1957 (inserted by statutory instrument No. 288 of 1985 and amended by statutory instrument No. 420 of 1992 ) is hereby amended by deleting paragraphs (a), (b) and (c) of that Article and substituting the following:

(a) a member having not less than 10 years service whose services are dispensed with on or after the operative date within the meaning of Article 1 (1) of the scheme amending the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (confirmed by the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1996), and before the 17 January 1998 because of redundancy arising from any scheme for the reorganisation or more economical operation of any department of the Board's undertaking, he then being within 10 years of reaching the normal age of retirement, may, if the Board so agrees, be granted a reduced pension calculated in accordance with Article 5 of the schedule to S.I. No. 48 of 1965 and Table A of Article 4 of the said Schedule as amended and a retirement gratuity calculated in accordance with Article 12 of the said scheme.

(b) a member having not less than 10 years service whose services are dispensed with on or after the operative date referred to in paragraph (a) and before the 17 January 1998 for the reason specified in the preceding paragraph, he being then between the ages of 50 and 55 years, may, if the Board so agrees be granted a reduced pension and retirement gratuity deferred to and payable from the date on which he attains the age of 55 years. The reduced pension shall be calculated in accordance with Article 5 of the schedule to S.I. No. 48 of 1965 and Table A of Article 4 of the said Schedule as amended and the retirement gratuity shall be calculated in accordance with Article 12 of the scheme referred to in paragraph (a).

(c) if an additional contribution to the fund is required to meet the cost of providing a reduced pension and retirement gratuity under paragraphs (a) and (b) above, it shall be contributed by the member or by the Board or jointly by the member and the Board as they may agree between them.

Dissolution of the Fund.

14. (1) The Board may, with the consent of the Minister, dissolve the fund.

(2) If the Board, with the consent of the Minister, determines that the fund shall be dissolved then, upon its dissolution, the liability of the Board and of the members to contribute to the fund shall cease. The fund shall then be realised and the trustees shall apply the proceeds of the realisation, so far as they permit, to the following purposes and in the following order of priority:

( a ) They shall discharge or make a reserve to discharge:

(i) the expenses, fees and costs relating to and associated with the dissolution of the fund, and

(ii) in so far as permitted under the Pensions Act, the other expenses, fees and costs of or incidental to the administration and management of this scheme which in their opinion may not be recoverable from the Board;

( b ) they shall, pay or secure the benefits referred to in paragraph 1 of the third schedule to the Pensions Act;

( c ) they shall, pay or secure the benefits referred to in paragraphs 2 and 3 of the third schedule to the Pensions Act;

( d ) they shall, discharge or make a reserve to discharge any expenses, fees and costs of or incidental to the administration and management of this scheme and the dissolution of the fund which in their opinion may not be recoverable from the Board and which have not already been discharged or for which no reserve has been made by reason of the Pensions Act;

( e ) they shall, pay or secure all benefits payable or contigently payable under this scheme to the extent that they have not already been paid or secured.

As regards any member who is in service on the dissolution date and who has not then reached the normal age of retirement, benefits shall be calculated on the assumptions that:

(i) he left service on the dissolution date, and

(ii) he was entitled to receive benefits under Article 10 (1) (a) of this amending scheme;

(f) in so far as sufficient funds remain, they shall pay or secure a fixed increase at the rate of up to 3 per cent per annum to pensions in payment with effect from the date at which they become payable to all persons entitled to such pensions, other than persons who immediately prior to the operative date were members or pensioners under the former schemes or were in receipt of pensions paid by the Board on an ex gratia basis;

( g ) in so far as sufficient funds remain, they shall pay or secure a fixed increase at the rate of up to 3 per cent per annum to pensions in payment with effect from the date at which they become payable to persons who immediately prior to the operative date were members or pensioners under the former schemes or were in receipt of pensions paid by the Board on an ex gratia basis;

( h ) if any moneys remain after all the preceding purposes have been carried out in full they shall be paid to the Board.

Payment without Representation.

15. Article 16 of statutory instrument No. 226 of 1957 (as inserted by Article 3 (5) of statutory instrument No. 132 of 1985 ) shall be amended by the deletion of the words "two thousand pounds" and the substitution of the words "six thousand pounds".

16. Article 9 of statutory instrument No. 115 of 1949 shall be amended by the addition of the words "including any administration costs incurred by the Board itself".

17. Article 11A of the schedule to statutory instrument No. 226 of 1957 as introduced by statutory instrument No. 7 of 1967 and substituted by statutory instrument No. 319 of 1985 shall be deleted and the following substituted:

"11A. Death of Employee;

(1) If a member dies while in the service of the Board and before retiring on pension having not more than 26 and ²/₃ years of membership, a lump sum shall be paid to his personal representative calculated at 52 times the basic weekly wage of which the member was in receipt at the date of his death or immediately prior to the commencement of sickness benefit, as the case may be.

(2) If a member dies while in the service of the Board and before retiring on pension having more than 26 and ²/₃ years of membership, a lump sum shall be paid to his personal representative calculated at ³/₈₀ of 52 times the basic weekly wage of which the member was in receipt at the date of his death or immediately prior to the commencement of sickness benefit for each year of membership, subject to a maximum of ¹²⁰/₈₀ .

(3) The said lump sum shall be reduced by the amount of any mortality grant paid or payable out of the Board's Welfare Scheme for Regular Wages Staff and the member's contributions to the fund shall not be returned."

18. The scheme amending the Córas Iompair Éireann Pension Scheme for Regular Wages Staff, confirmed by the Córas Iompair Éireann Pension Scheme for Regular Wages Staff (Amendment) Scheme (Confirmation) Order, 1995 (S.I. No. 319 of 1995), is hereby revoked.

GIVEN under my Official Seal, this 1st day of May, 1996.

MICHAEL LOWRY,

Minister for Transport, Energy and Communications.

EXPLANATORY NOTE.

The purpose of the Scheme is to provide for the establishment of a single scheme, the review of pensions in payment, the basis on which the members' and the Boards contributions are to be paid, the basis on which pensions will be paid, vested benefits, a retirement gratuity, the order of priority if the Scheme is dissolved, payment of administration costs by the Fund, improved death in service benefits, the elimination of the percentage discount factor which applies on early retirement, the extension of the existing provisions to allow for voluntary early retirement on redundancy and to make reference to the amount which may be paid to the personal representatives of deceased members without probate. (This note revokes the previous note attached to S.I. No. 319 of 1995).