I met representatives from the Retired Aviation Staff Association on 10 October 2000 to hear details of its submission for enhanced pension benefits presented to the task force. At the meeting I undertook to raise the concerns of the association with the chairmen of Aer Lingus and Aer Rianta. I hope to have meetings on that matter next week. I also undertook on behalf of the association to clarify some issues with my colleague, the Minister for Finance, on receipt of additional information from the association, which is awaited. It said it would send it to me.
The task force on pensions established by the chairmen of Aer Lingus and Aer Rianta at my request to examine concerns about the Irish airlines general employees superannuation scheme submitted a report to the chairmen of the companies concerned at the end of May 2000.
The task force report summarised the main concerns and views about the pension scheme made by various representative associations in submissions and presentations and an independent actuary costed the various proposals received.
Following receipt of the task force report, Aer Lingus and Aer Rianta commissioned separate reviews of the report. As far as Aer Rianta is concerned, the company proposes to establish a new pension scheme in due course in accordance with section 32 of the Air Navigation and Transport (Amendment) Act, 1988, and the company is giving consideration to this matter.
Aer Lingus, as a result of its review and having regard to the structure and terms of the existing scheme, decided that the most appropriate course of action was to set about establishing a separate pension scheme for relevant Aer Lingus staff. In light of these circumstances, the airline has been discussing the terms of a proposed new pension scheme with employee representatives. The company has also recently outlined its proposals to the Retired Aviation Staff Association.
Appropriate enabling provisions to allow Aer Lingus to establish the new pension scheme are contained in the Aer Lingus Bill, 2000. Under those provisions, it is proposed that existing Aer Lingus employees will transfer to the proposed new pension scheme while Aer Lingus pensioners will have the option of either remaining in the existing scheme or alternatively joining the proposed new scheme.