Government may get €2bn boost from pension funds

[spalpeen]

Government may get €2bn boost from pension funds
Tuesday, August 12, 2008
http://www.irishtimes.com/newspaper/fro ... 42627.html

"THE GOVERNMENT will improve its financial position by up to €2 billion under plans to assume the assets of pension funds in the semi-State sector.

The money will help keep the Government within Maastricht spending guidelines next year despite worsening tax revenues.

A Department of Finance spokesman confirmed yesterday the transfer of pension fund assets to the exchequer was "anticipated to affect the General Government Balance" - the measure of the State's finances that determines compliance with the EU Stability and Growth Pact.

Under a statutory instrument signed late in July, a number of institutions that have funded their own pension schemes to meet staff retirement costs were told the State intended to "assume the assets and liabilities of this scheme and meet future liabilities as they arise on a pay as you go basis". It is unclear how much these funds hold in assets but industry sources said it would amount to more than €2 billion...."

Here they come to steal the pension money... not content what they have screwed the public out of they now want all the eggs from all the baskets

[aodh_rua]

I can't remember which thread - but someone did recently point out that the government might do a Robert Maxwell with the public pension funds.

[BodyofEvidence]

Government may get €2bn boost from pension funds
Tuesday, August 12, 2008
http://www.irishtimes.com/newspaper/fro ... 42627.html

"THE GOVERNMENT will improve its financial position by up to €2 billion under plans to assume the assets of pension funds in the semi-State sector.

The money will help keep the Government within Maastricht spending guidelines next year despite worsening tax revenues.

A Department of Finance spokesman confirmed yesterday the transfer of pension fund assets to the exchequer was "anticipated to affect the General Government Balance" - the measure of the State's finances that determines compliance with the EU Stability and Growth Pact.

Under a statutory instrument signed late in July, a number of institutions that have funded their own pension schemes to meet staff retirement costs were told the State intended to "assume the assets and liabilities of this scheme and meet future liabilities as they arise on a pay as you go basis". It is unclear how much these funds hold in assets but industry sources said it would amount to more than €2 billion...."

Here they come to steal the pension money... not content what they have screwed the public out of they now want all the eggs from all the baskets

Will they also take the pension funds that show actuarial deficits (like the Universities, where there are severe deficits conssequent of the introduction of the FTWA without any change in funding structures to support these liabilities).....

[kerrynorth]

From what I can make of it there is virtually no hope of Eurostat accepting the governments version of events on this. Eurostat would almost certainly treat this in exactly the same way as that of the NPRF and discount it in calculating for the Maastricht criteria. What it does highlight though is that the government are panicing and have run out of all ideas in managing the public finances and are desperately trying to evade making the tough decisions.

[Magror14]

I was trying to find the statutory instrument on the net. Does anyone have a list of the semi-states involved.