Retired RTÉ staff welcome rejection of broadcaster’s bid to transfer pension scheme costs – The Irish Times

The Minister for Communications has rejected a bid by RTÉ to transfer the administration costs of one of its legacy pension schemes to the scheme itself, a move former staff said would have cost them €40m over the long term.

The broadcaster first sought the change in February 2020 as part of a wider €60 million cost-cutting plan but was rebuffed by the department at the time on the basis that in the event the transfer prompted a deficit in the fund, RTÉ would have to make it up.

The department again rejected the proposal in February 2024 when it said the evidence provided to it by the New Economy and Recovery Authority (NewEra) – which provides financial advice to departments – was that it was usual for semi-State bodies to cover the administration costs covered by the scheme.

On Monday the RTÉ Retired Staff Association (RTÉRSA) welcomed a decision by Patrick O’Donovan to maintain the position that the request be rejected.

Chair Phil Healy said that after a long and determined campaign against the proposals, it was “a good day for occupational pensioners and proves that older people can raise their voices”.

“We believe the move would have been detrimental to future payments and cost-of-living increments for our members. It 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 RTÉ pension,” Healy said.

“It would also have set a very negative precedent for pensioners in other schemes sponsored by commercial State bodies.”

The pension plan, which is a defined benefit scheme under which members are paid a proportion of their salaries depending on service, was closed to new members in 1989.

It has a total of 1,601 members of whom the number still working in RTÉ is said to be in single figures.

The broadcaster had argued that even after factoring in pension increases of 4 per cent every year for as long as any members survive, the fund has a surplus of €61 million.

It had suggested setting aside €20m of this would have covered all future costs, which had been put at €500,000 per annum when the original application was made but which are said to have increased significantly since.

Approached for comment on Monday, the broadcaster said it “noted the decision” by the Minister.