The Irish Government has paid a €500 million (about $630 million) pension fund a “coupon” for its assets, leaving it to rely on cash flow from a “vulture fund” to fund its retirement.
The payment was announced by Finance Minister Micheál Martin as he unveiled the pension plan for Aviva Pension Fund, which will receive €4.5 billion from the State, and €2.6 billion from Aviva Ireland.
Mr Martin said the pension fund would have the option of paying the money back to the State.
It will receive the payment from Avivas assets at a rate of €50 per annum for 10 years.
Mr Mahesh said the payments were “an example of how the Government can ensure we are not relying on pension funds to fund public services”.
Aviva’s pension fund has been under pressure since the financial crisis in 2009.
It was forced to reduce its funding in the wake of the financial crash, and it has since faced increasing pressure to make more money from the public sector.
Mr Finlay said Aviva had “an important role to play in the public service”.
“Avivas investment in public services was a key factor in the Government’s decision to reduce public sector funding to the private sector in 2011,” he said.
The payment comes amid growing pressure on the Government, which has already faced criticism over its handling of the fallout from the Brexit vote and the impact of the Brexit referendum. “
This decision also helps the Government balance its books as well as providing a significant source of revenue for the State.”
The payment comes amid growing pressure on the Government, which has already faced criticism over its handling of the fallout from the Brexit vote and the impact of the Brexit referendum.
The Government has faced criticism for the way it dealt with the Brexit crisis, including its decision to hold the referendum before it had fully decided whether to leave the EU.
The State Government has since cut the budget by more than €500 billion, and the Government is currently under pressure to reduce costs, as well.