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Written Answers. - ESB Salaries.

Wednesday, 28 February 1996

Dáil Éireann Debate
Vol. 462 No. 3

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 138. Mr. S. Brennan Information on Seamus Brennan Zoom on Seamus Brennan  asked the Minister for Transport, Energy and Communications Information on Michael Lowry Zoom on Michael Lowry  the way in which the salary of a 50 year old ESB employee will be increased after 1 September 1996; the total cost to the ESB to make this person redundant by way of total pay to retirement age, lump sum, pension contribution required as of 31 July 1996 to fully cover the ESB pension fund against all additional costs arising to it from providing this employee with the pension rights provided for in the CCR plan and related side agreements. [4712/96]

Minister for Transport, Energy and Communications (Mr. Lowry): Information on Michael Lowry Zoom on Michael Lowry I have been advised by ESB that the average salary of a 50 year old employee may increase on average by approximately 2.5 per cent after 1 September 1996, assuming the implementation of CCR and the payment of the next phase of Programme for Competitiveness and Work. This increase depends on employee eligibility for productivity agreements. The total cost of making that employee redundant, in present value terms, is made up as follows:—

(i) £20,300 relating to a lump sum of one year's salary.

[823] (ii) £75,900 relating to total retirement pay at 50 per cent over the next ten years.

(iii) £78,750 relating to total payments to the superannuation fund over the years to secure pension entitlements.

The cost of the severance, as outlined here, must be measured against the cost — estimated at £275,000 in present value terms — of keeping the employee in service until age 65 on full pay. The ESB has assured me that the costs of the voluntary severance for such a person will be fully recovered in approximately six years.

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