Oh to be an employee of the Central Bank of Ireland where the costs of running its gold-plated defined benefit pension scheme can simply be passed on to the industry to absorb.

An industry, that is, whose members have mostly either closed or radically restructured their own schemes to reflect the financial realities of the recession.

The Central Bank recently informed the various financial services sector groups that the industry funding levy would have to rise by a hefty €20.6 million this year.

The €29 million pension cost for this year was cited as the “most significant driver” of the increase in the levy. The regulator’s pension scheme is under water and rules on how it is accounted for in its accounts have driven up costs to the bank.

In addition, a shortfall in levies from prior years of €2.4 million has to be recouped in 2015. The industry is being asked to pick up both tabs.

Not surprisingly, this led to a certain amount of blowback from the banking, insurance and investment-fund sectors, which are not impressed at being asked to underwrite the deficit in the Central Bank’s pension scheme.

On Wednesday, the Central Bank announced a measure of relief with its decision to increase the levy by just €15 million. The balance will be clawed back over a 10-year period.

The regulator said staff expenses, which include pensions, are a “significant component” of its overall costs.

The various industry groups have told Cantillon that they will review the Central Bank's latest proposal before making any comment.

This could be moot as the regulator plans to seek the approval of Minister for Finance Michael Noonan for the levy rise in the coming days. Noonan might own sizeable stakes in AIB, Bank of Ireland and Permanent TSB but the likelihood is that he will nod through the increase.

If that isn’t enough, the Central Bank wants to move to a situation where the industry pays for the full cost of its regulatory activities as opposed to the current 50-50 split.

Where are those smelling salts?