CIÉ's accounts show pension schemes actuarial loss of €422m for 2008

THE ACTUARIAL loss for the CIÉ pension schemes in 2008 was €422 million, according to the State company’s accounts for that year.

The figure represents a loss in value of more than 27 per cent over the value of the schemes at the year’s outset.

The loss brought the deficit in the State transport company’s pension schemes to €567.6 million. The schemes have been in deficit for the past number of years, usually to an amount of in the order of €250 million .

A senior source in the group said its pension schemes are not underwritten by the State.

Notes to the accounts show that, at the end of 2008, 41.8 per cent of the schemes’ assets were equities while 36.9 per cent were bonds and 15 per cent property.

The value of the schemes’ assets at the end of the year was €1.16 billion, while the liabilities were valued at €1.72 billion.

The company and its subsidiaries employed an average of 11,848 people during 2008, a 147 rise in the numbers employed the previous year. Staff costs for the year were €676.5 million, up from €645.1 million the previous year.

CIÉ, whose subsidiaries are Iarnród Éireann, Bus Éireann, and Bus Átha Cliath, had revenue of €789.1 million in 2008, up from €785.5 million the previous year.

However, operating costs were €1.18 billion, up from €1.12 billion the previous year. A public sector grant of €321 million meant an end-of-year surplus of €10 million.

The group’s fixed assets totalled €2.62 billion at year’s end, up from €2.17 billion the previous year.

The group’s balance sheet shows that its retirement benefit obligation grew to a €567.6 million deficit, from a €162 million deficit the previous year.

The notes to the financial statements show mainline and suburban railway brought in revenue of €208 million, but had operational costs of €299.2 million. Infrastructural costs were €218.6 million. Bus services brought in revenue of €522.6 million, but had operational costs of €704.6 million. The largest deficit by activity was mainline rail, at €242.4 million.

Board members’ remuneration included €155,000 for “services as board members” and €486,000 “for other services”. Executive chairman Dr John Lynch was paid €239,602 “for other services”.