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MPF 2009 Annual Report:MPF 2004 Annual Report 20/08/2010 10:00 Page 4
MPF Annual Report Year Ending 31.12.2009
REPORT OF THE TRUSTEES
This Annual Report of the ESB Staff Medical Provident Fund explains the main objectives of the
Fund, outlines the main issues facing the Trustees and also includes the audited financial statements
for the fund year ending 31 December 2009. An abridged version of this report has been issued to
each subscriber.
Both reports give key information to provide you with a good overview of the financial and long-term
position of the Fund. The Accounts and the related notes, which form part of the Financial
Statements are included in pages 9 to 14 of this report and have been audited by Whelan Dowling
& Associates, Chartered Accountant & Registered Auditor on behalf of Group Internal Audit, ESB.
The Accounts were approved by the Trustees on 22 June 2010.
Objectives of the Fund
Since being founded in 1955, MPF has as its objective the assisting of members in the payment of
medical expenses. This includes both inpatient and outpatient costs with a priority being applied to
maintaining the best possible inpatient cover. As a health insurance provider, MPF is regulated under
the Health Insurance Act 1994 – S.I. No. 80 of Health Insurance Act, 1994 (Registration)
Regulations, 1996 and subsequent Acts and Regulations.
Financial Results
An operating deficit arises for the year under review. Claim expenditure exceeded Subscription
income by €825,397. When administrative expenses, bank interest, tax is taken into account the
overall operating deficit was €866,262.
For 2009, contributions increased by 12% to €29.357 million but expenditure on benefits was up
by 14% to €30.183 million. This reflects not just an increase in the cost of these claims but also the
effect of an upward trend in actual claim numbers, which increased to over 32,000 for the year.
The good news is that we had a major improvement on investment markets and the return on invested
reserves for the year was a very positive + 20.2%. After providing for Tax the gains amounted to
over €3.6 million.
These gains less the operating deficit allowed for a surplus of €2.741 million to be transferred to
Reserves. The value of the Fund increased to €25.961 million.
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