Dáil Éireann debate -
Thursday, 10 Jul 1997

Vol. 480 No. 3

Written Answers - Superannuation Schemes.

Noel Ahern

Question:

24 Mr. N. Ahern asked the Minister for Transport, Energy and Communications if she will give details of the co-ordination introduced on instructions from her Department in 1970 into the pension scheme of many Aer Lingus and Aer Rianta staff whereby, for those staff who joined after 1 April 1970, the current social welfare old age pension rate is deducted from their superannuation entitlement before payment; the reason this co-ordination was introduced; the companies or category of workers involved; if it is covered by legislation; if her attention has been drawn to concerns in this regard; if it will be removed; and if she will make a statement on the matter. [14175/97]

Minister for Transport, Energy and Communications (Mrs. O'Rourke)

While I have a statutory role in relation to the superannuation schemes in some State bodies — under section 20 of the Air Companies Act, 1966, all changes to the existing schemes in Aer Lingus and Aer Rianta are subject to my approval, following consultation with the Minister for Finance — the determination of general policy in relation to such schemes is a matter for the Minister for Finance. Having said that, the co-ordinated arrangements which apply since 1970 are inherently logical and there is no proposal to change them. Under these arrangements, eligibility for social welfare pensions, where it arises is taken into account in setting the arrangements in vocational schemes both in relation to contributions and benefits.

In the case under reference co-ordination was introduced in the context of proposed amendments to the Irish Airlines (General Employees) Superannuation Scheme. In the course of granting approval for those changes, the then Department of Transport and Power required that the scheme be co-ordinated with social welfare benefits. This arrangement applied to new members joining the scheme after 1 April 1970. Existing members were given the option of joining the new arrangements or remaining in the existing scheme. This type of co-ordination is now a fundamental feature of most public and private sector schemes and since April 1995, has been extended to all new entrants to the public service who are on full PRSI.