RTE wrote to the Department of Culture and Communications last autumn asking for permission to amend the regulations of a defined-benefit superannuation scheme. The change would have made the fund pay its own operational costs.<\/p>\n
RTE claimed the cost of supporting the pension scheme had risen significantly, and at a time when the cash-strapped station needed the money to support other priorities.<\/p>\n
Angry pensioners had accused RTE of trying to \u201craid\u201d the scheme, and urged the Government not to grant the request. Today the pensioners were informed that the application has been refused, and the costs of the scheme will continue to be paid by RTE.<\/p>\n
A spokesman for the station would only say that \u201cRTE notes the decision\u201d. Asked if the station will appeal, he said RTE had previously done so, and pointed out that the communication from the Department had concluded by saying: \u201cGiven the extensive scrutiny of the matter over the past six years, the Department is also of the view that a longer time period pass before the matter is revisited\u201d.<\/p>\n
The RT\u00c9 Retired Staff Association (RT\u00c9RSA) said it was pleased to learn that Minister Patrick O\u2019Donovan had rejected the attempt to transfer the administration costs of the scheme from RT\u00c9 to the actual fund.<\/p>\n
\u201cWe believe that such a move would have been detrimental to future payments and cost of living increments for our members,\u201d said Phil Healy, chair of the association. \u201cIt is particularly important for those members who, due to the rules of the scheme, do not qualify for a state pension or benefits and rely solely on their RTE pension.<\/p>\n
\u201cIt would also have set a very negative precedent for pensioners in other schemes sponsored by commercial state bodies.\u201d<\/p>\n
RTE had been told in February 2024 that the Department would keep the issue under review, given the declining number of active members in the pension scheme, leading to de-risking.<\/p>\n
In its application last autumn, RTE said it and the board shared the belief that the scheme should cover its own operational expenses, and that the case for doing so was strong, given that concerns previously raised by the Government had been addressed.<\/p>\n
The station also pointed out that, as of January 2024, the pension scheme showed a surplus of \u20ac421m, or \u20ac61m after allowing for pension increases in excess of expected inflation.<\/p>\n
\u201cThis surplus significantly exceeds what is required to fund future operational expenses,\u201d it said.<\/p>\n
RTE also argued that the scheme\u2019s investment portfolio had been de-risked with matching assets such as sovereign bonds rising from 46pc in 2022 to 76pc in 2025. This had reduced volatility and stabilised the scheme\u2019s long-term funding position, it said.<\/p>\n
RTE also made that the case that the pension\u2019s active membership \u2013 the number of people still working \u2013 fell from 98 in 2020 to 26 in 2024 and was likely to be just 10 by the end of 2025. This meant the scheme was \u201coverwhelmingly\u201d made up of pensioners.<\/p>\n
The retired staff had countered that the full cost of the change over the lift-time of the scheme could be as much as \u20ac40m. <\/p>\n","protected":false},"excerpt":{"rendered":"RTE wrote to the Department of Culture and Communications last autumn asking for permission to amend the regulations…\n","protected":false},"author":2,"featured_media":408360,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,5243,15645,174,175,6085],"class_list":{"0":"post-408359","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-ie","11":"tag-ireland","12":"tag-john-burns","13":"tag-patrick-odonovan","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-rte"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/408359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=408359"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/408359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/408360"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=408359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=408359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=408359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}