I propose to answer Questions Nos. 33 and 56 together.
I am fully aware of the concerns of the Retired Aviation Staff Association. Over the past two years I have responded to numerous representations in relation to the concerns of RASA about the Irish airlines (general employees) Superannuation Scheme. I have also met representatives from this organisation and senior officials from my Department met the association on three occasions over the past year most recently last month. In addition, the association has also met senior management representatives from Aer Lingus and Aer Rianta in relation to their concerns.
In so far as pension increases under the Irish airline (general employees) superannuation scheme are concerned, I understand from Aer Lingus that the trustees of the scheme have increased pensions in line with the annual consumer price index in keeping with the discretion available to them under the rules of the scheme.
As regards pension enhancements in a new scheme to benefit both serving staff and existing pensioners, the companies' position is that these will emerge from negotiations with representatives of staff which are associated with strategic change initiatives. It is Aer Lingus's intention to implement the new pension scheme as soon as possible after the privatisation of the airline is completed.
Aer Lingus management has proposed that in the new scheme, pensions will increase in line with the annual consumer price index provided that it does not exceed 5%. Furthermore, should the CPI exceed 5%, the trustees of the new scheme may at their discretion award further percentage increases to pensions in payment on the basis of advice from the scheme's actuary. It is also proposed that the new scheme will provide improved benefits in areas such as guaranteed pension payments periods and death-in-service benefits. Aer Lingus advise that the overall terms of the proposed new scheme would be in line with practice in the private sector and, in many cases, would have better benefits.
In so far as Aer Rianta is concerned, the company proposes to establish a new scheme as soon as possible in consultation with staff interests. I understand that new scheme will be along the lines of the new scheme outlined by Aer Lingus. The terms of the proposed new pension schemes are essentially a matter for the companies concerned to negotiate with staff interests. Existing Aer Lingus and Aer Rianta pensioners who transfer to the new Aer Lingus and Aer Rianta schemes will receive the improved benefits when the new schemes are introduced.