2026-01-13

I wish to address the ongoing failure to implement the CIÉ pension proposals that were accepted by the CIÉ staff on 15 August 2025. Before addressing the delay itself, it is important to acknowledge how this agreement came about, because it did not happen by accident and it did not happen easily. This deal was secured through Trojan work by CIÉ employees and former workers, that is, pensioners who refused to be brushed aside, who organised, who engaged constructively and who stayed at the table when it mattered. They approached this process in good faith with patience, persistence and a clear commitment to resolution. At every stage, these workers acted responsibly. They did not grandstand. They did not walk away. Instead, they engaged, negotiated and, ultimately, accepted proposals that they believe represented a fair and hard-won outcome. That acceptance, on 15 August 2025, was the culmination of years of effort by people who had already given decades of service to public transport in this State. That is why what has happened since is so deeply disappointing. Months after acceptance, the agreed proposals remain unimplemented. Pensioners who did everything asked of them are left waiting, not because of any failure on their part but because the State has failed to move with the urgency that this agreement deserved. I will focus in on one particularly important aspect of the proposal. The agreement states that pensioners will, on acceptance of the proposal, receive increases on all CIÉ pensions up to a maximum pension of €30,000. The words "on acceptance" carry meaning. They reflect the understanding reached after difficult negotiations and sustained engagement by workers and pensioners who fought to ensure that their concerns were finally recognised yet today, those pensioners have seen no increase. The delay in introducing the necessary statutory instrument has effectively frozen the benefit of an agreement that was secured with extraordinary effort and good will on the part of workers. This raises a fundamental question of fairness also. When an agreement is accepted and when pensioners have fulfilled their side of the agreement, why should they bear the financial cost of administrative delay? Many of these pensioners are living on modest fixed incomes. They are not asking for special treatment. They are asking for the delivery of what was agreed and for recognition of the contribution they made in achieving that agreement in the first instance. This situation also risks undermining trust in the industrial relations process. If workers engage constructively, refuse to be sidelined and, ultimately, reach agreement only to see implementation drift endlessly, confidence in future engagement is weakened. I am asking the Minister of State to act with the same seriousness and good faith that CIÉ workers and pensioners showed throughout this entire process. That means providing a clear timeframe for the statutory instrument. It means confirming that pensioners will not be disadvantaged by the delay itself and it would mean recognising that agreement secured through Trojan effort must be honoured in full and without further drift. CIÉ workers and pensioners did their part. It is now time for the State to do theirs.

I thank Deputy Kenny for raising this important topic, which I am taking on behalf of the Minister for Transport, Deputy Darragh O'Brien. From the outset, I would like to clarify that the Minister for Transport has responsibility for both policy and overall funding in relation to public transport. As a commercial semi-State body, however, CIÉ is responsible for the provision of pension schemes for their employees - this is consistent with the pension arrangements of all other semi-State bodies. Issues in relation to CIÉ's pension schemes are primarily a matter for the trustees of the pension schemes, the CIÉ group and its employees. Decisions relating to the administration of CIÉ pension schemes, including pension increases, are a matter for the CIÉ board, guided by the relevant statutory instruments and actuarial advice. The 1951 superannuation scheme is one of two defined benefit pension schemes operated by the CIÉ Group, the other being the regular wages staff scheme. Between the years of 2008 and 2022, neither scheme met the statutory minimum funding standard set by the Pensions Authority, which meant no pension increases could be granted during that period. While both schemes met the minimum funding standard at the end of 2023, they have grown increasingly costly, posing a serious financial risk to CIÉ. As of December 2024, the combined pension liability stood at €361 million, the largest of its kind in the State, rendering CIÉ technically insolvent. This situation is unsustainable and out of line with practice in other commercial semi-States where new employees are no longer admitted to defined benefit schemes. Furthermore, no pension increases have been provided for the past 18 years due to the fragile funding position. Given the scale of the liability, CIÉ’s primary objective has been to close both defined benefit schemes to new entrants to protect the benefits of existing members and the solvency of the CIÉ Group and to establish a new defined contribution scheme. To this end, the Minister for Transport welcomed and commended the constructive and collaborative approach taken by the trade union group and CIÉ management in reaching agreement on a pathway forward to resolve this matter. The Minister has also acknowledged the positive outcome from the ballot held from 11 July to 15 August 2025 on the CIÉ pension proposal for both CIÉ pensions schemes. Following on from this constructive and collaborative agreement, the Department of Transport is engaging with CIÉ as well as financial advisers at NewERA and the Department of Public Expenditure, Infrastructure, Public Services, Reform and Digitalisation on the next steps in progressing the agreement and bringing CIÉ pensions onto a more stable footing for the benefit of active and retired scheme members. In line with procedures laid out in the annex on remuneration and superannuation to the code of practice for the governance of State bodies 2016, as amended in Circular 16/2021, CIÉ must provide the Minister for Transport with a formal consent request in respect of any changes to the schemes. The Department of Transport must then submit that ministerial consent request to the Minister for public expenditure, infrastructure and public service reform for consideration. Following on from the dual ministerial review, under the Transport Act 1950, a statutory public consultation process is required regarding amendments to CIÉ pension schemes where any representations from interested parties will be considered. The Minister for Transport may therefore confirm, modify or reject an amending scheme in accordance with the process set out under the Transport Act. Under section 44 of the Transport Act 1950, CIÉ is required to publish notification of any proposed change to its superannuation schemes in Iris Oifigiúil and at its head office for a period of not less than 28 days.

I appreciate the reply from the Department. I want to give some context to the significant issue I raised. Yesterday, in my office, I met a former CIÉ worker, a pensioner. This is the fundamental issue he is facing right now, as it is for those he meets for the monthly cup of tea or coffee - the conversation they once had in their staffroom. On the new defined contribution scheme, the Minister acknowledged the positive outcome of the ballot held on 15 August 2025. Following on from this constructive and collaborative agreement, the Department of Transport is engaging with CÍÉ. It brings us back to fundamental fact – the proposals were accepted on 15 August 2025. The agreement states that pensioners will receive increases on acceptance. That is not ambiguous language, yet today, pensioners have received nothing because the Government has failed to act in a timely manner. References to process and statutory instruments do not change that reality. Administrative delay by the State cannot become a justification for the financial loss of pensioners. The question remains and deserves a clear answer – when the statutory instrument is eventually introduced, will the pension increases be backdated to 15 August 2025? I think it is the case in a lot of similar situations to that of the man I met yesterday, who I know very well, and of all the pensioners in CIÉ, that it is often the case that the money itself is not the actual issue. It is that they signed up to this agreement under a pretence on 15 August 2025 - understandably it would have taken a period of time to get the agreement in place - but their fundamental question now is whether, if it happens in one year, two years or three years, it will be backdated to 15 August 2025, when that agreement was reached?

The Minister for Transport acknowledges the long-standing tradition within the CIÉ Group of ensuring the terms and conditions of employees, which include pension provisions, are negotiated collectively with the recognised trade unions. As I said, the Minister is responsible for policy and operational matters within transport. Pension schemes and provisions are the responsibility of CIÉ and its trusteed. However, the Minister is engaging proactively with all of the relevant stakeholders to progress this matter. I assure the Deputy that he is raising this important matter and securing the dual ministerial consent for the statutory instrument. We have to follow due process in regard to the responsibility of both the Minister for Transport and the Minister for public expenditure and reform following that period of consultation, which will be launched prior to the implementation of the new CIÉ pension scheme. It is a key focus of the Department to ensure all stakeholders endeavour to achieve this at the earliest possible opportunity while keeping in line with the appropriate processes and ensuring it is in compliance with the relevant regulations and statutory instruments to ensure all necessary approvals are given effect and all agreements are honoured. I thank the Deputy for bringing up this important matter. We all know people who have given enormous service to CIÉ over many decades and we want them to be supported in regard to their pension entitlements. It is important to bring these concerns to the floor of the Dáil. I will convey all of the Deputy’s points to the Minister, Deputy O’Brien.