Dáil Éireann debate -
Wednesday, 6 Oct 1993

Vol. 434 No. 2

Written Answers. - Public Sector Transfer Scheme.

Noel Ahern

Question:

328 Mr. N. Ahern asked the Minister for Transport, Energy and Communications if he will make a transfer payment to the Irish Airlines Superannuation Scheme in respect of Aer Lingus and Aer Rianta staff members who previously served in the Defence Forces and left prior to 9 September 1968, in view of the fact that several staff members currently considering early retirement under the Aer Lingus restructuring package are affected and there is a precedent from other Government Departments for such a payment.

Minister for Transport, Energy and Communications (Mr. Cowen)

The Public Sector Transfer Scheme, of which Aer Lingus and Aer Rianta are members, provides a mechanism whereby persons employed by member organisations can have prior service with other member bodies reckoned for superannuation purposes by their final employer. Since the service referred to was given prior to the date on which Aer Lingus and Aer Rianta became members of the transfer scheme, those organisations have discretion as to whether it should be reckoned for benefit purposes under their Superannuation Scheme. Subject to the agreement of reciprocal arrangements, the State — in its role as former employer — would be prepared to make the appropriate contributions provided for under the transfer scheme in respect of the transfer of service.

However, it should be noted that in some cases at least, the cost to Aer Lingus/Aer Rianta of providing the enhanced benefits accruing from the transferred service might be more than the contribution income which those bodies would receive under the transfer scheme. In other words, the reckoning by Aer Lingus/Aer Rianta of pre-1968 Defence Force service could entail extra costs for those organisations. This is a factor which Aer Lingus/Aer Rianta would have to take into account in deciding whether or not the service in question should be reckoned by them for superannuation purposes.