Committee Reports > List of Committees > Seanad > 1967 > Select Committee on Statutory Instruments > Report No. 03 - Statutory Instruments [7]

APPENDIX I.

Central Bank of Ireland: Amending Superannuation Scheme

14th July, 1966.

A Chara,

The Select Committee on Statutory Instruments has the duty of examining every statutory instrument laid before Seanad Éireann pursuant to a statutory requirement with a view to determining whether the special attention of Seanad Éireann should be drawn to the instrument. In discharge of this duty the Committee has examined the Amending Superannuation Scheme made by the Central Bank of Ireland on 5th January, 1966. To enable it to decide if it is necessary to draw special attention to the Scheme the Committee would be glad if you would furnish it with an explanatory memorandum explaining some aspects of the Scheme.

In regard to Article 1 of the Scheme the Committee wishes to ascertain precisely what purpose paragraph (b) thereof is intended to serve which cannot be achieved under paragraph (a). In particular it desires to learn if it is intended that future legislation and regulations made by the Minister for Finance under existing or future legislation are to be regarded as applying to pensioners of the Bank without further amendment of the Bank’s existing schemes and, if so, whether the award of pension increases payable under such legislation or regulations is to be left entirely to the discretion of the Bank.

It is observed that section 30 (1) of the 1964 Act speaks of “employees” and “persons who have retired from the service of the board.” The Committee would be glad if you would confirm that it is intended that any increases granted under Article 1 of the Scheme will be applied to the pension of a Governor. If so the Committee would like the Banks’ observations on whether the Governor can be regarded as an employee or person in the service of the board of the Central Bank in view of the provisions of section 5 (3) of the Central Bank Act, 1942.

Article 2 of the Scheme appears to be an amendment of earlier schemes applicable to Governors, officers and servants. The Committee notes that section 2 (1) of the Central Bank Act, 1961 authorises the amendment of schemes relating to Governors but it would be glad to learn on what statutory authority the Bank relies for the amendment of schemes relating to officers and servants.

It is not clear to the Committee what is intended by providing in Article 2 that the Bank shall “do all things which it considers necessary to enable the provisions of the Superannuation Acts to be made fully applicable to a governor, officer or servant.” The Committee is in doubt as to how the provision can be reconciled with section 3 (2) of the Central Bank Act, 1961 which provides that certain provisions of the Superannuation Acts must apply to an amending scheme relating to a Governor which depends on section 3 (1) of that Act. If the provisions of the Superannuation Acts or some of them are to be applied to officers and servants it is not understood why such provisions are not specifically applied in an appropriate scheme.

Finally the Committee would welcome the views of the Bank on the desirability of including provisions relating to the superannuation of a Governor in the same instrument as deals with the superannuation of officers and servants in view of the fact that the same statutory provisions do not apply to both cases.

Cléireach an Roghchoiste.

The Secretary,

Central Bank of Ireland.

Cléireach an Roghchoiste,

Seanad Éireann.

I am directed by the Minister for Finance to refer to your minute of 14 July, 1966, and enclosure regarding an amending superannuation scheme made by the Central Bank on 5 January, 1966, and to enclose herewith a memorandum on aspects of the scheme referred to by the Select Committee.

9 Samhain, 1966.

Scheme

Made under the Central Bank Acts, 1927 to 1964 and the Pensions (Increase) Act, 1964

Explanatory Memorandum

1. The officers and servants of the Central Bank are covered by a scheme enabling the Bank to grant them awards similar to those granted to civil servants under the Superannuation Acts. Pensions for governors are provided by separate schemes. Pensions under the Superannuation Acts and pensions of the same type as those payable to former governors, have been increased under the Pensions (Increase) Acts and the Regulations made thereunder.

2. Article 1 (a) of the Scheme attaches the provisions of the Pensions (Increase) Acts to the other superannuation provisions for former governors, officers and servants of the bank, thus placing them in the same position as other public servants.

3. Article 1 (b) is a complementary provision which the Bank adopted on legal advice to cover payments of increases in pensions, awarded before the date of the Scheme.

4. Any future pensions increase to be granted by the Bank will be limited to the provision made by future Pensions Increase Acts, or Regulations, for other public service pensioners or any category of such pensioners distinguished by date of retirement, salary levels, or otherwise: Article 1 (a) of the Scheme gives the Bank no discretion to exceed the limits fixed by the Pensions Increase Acts or Regulations. The question whether future Pensions Increase Acts or Regulations will enable an increase to be granted in any pension payable by the Bank will depend on the limits fixed by such Act or Regulations.

5. The application of the Pension Increase Acts to the pension of a Governor by paragraph (1) is effected by virtue of the provisions of Section 2 of the Central Bank Act, 1961, which provide for the amendment of the superannuation schemes for a Governor of the Bank.

6. Article 2 is an addition to existing schemes, as was the scheme of 1934. and was the exercise of a power in accord with the Interpretation Acts 1923 and 1937, subsection 1 of Section 12 and subsection 1 of Section 15 respectively, and in the absence of any contrary intention in the Currency Act 1927. Also see paragraph (b) of subsection (4) of Section 15 of the Central Bank Act, 1942.

This Article is intended to clarify the position of the Bank in relation to Superannuation in general. The Superannuation Acts comprise many statutes and numerous functions apart from the actual grant of pensions. The Article affirms that the Bank may do anything required by these Acts to secure that those eligible for pensions should receive no less favourable treatment that that capable of being accorded to civil servants under the Acts.

7. A separate scheme could have been made for a governor and another for officers and servants. As the subject matter and purpose of such schemes would have been similar in both instances, the Bank considered that it would be of advantage to avoid duplicate schemes and to adopt one comprehensive scheme.