Vol. 560 No. 1
771 Mr. R. Bruton asked the Minister for Transport if it is his intention to address the shortfall in the funding of the pension schemes of Aer Lingus and Aer Rianta as raised by the Retired Aviation Staff Association, before consideration is given to a flotation of either Aer Lingus or Aer Rianta; and if he will make a statement on the matter. [1426/03]
The Retired Aviation Staff Association are seeking a cash injection into the Irish airlines general employees superannuation scheme to bridge the difference between the annual consumer price index related increases awarded to the pensions in payment and salary movements from 1989.
The case made by the Retired Aviation Staff Association was forwarded by my predecessor, former Deputy Mary O'Rourke, for consideration to the Minister for Finance, who has overall responsibility for pension matters in the public sector. The contents of his reply were communicated to the retirees' association in October 2001.
In summary, the Minister does not consider that it would be appropriate to accede to the request from the association for an injection into the pension fund and that there must be continued adherence to the long-standing policy in this area, that is, that pension entitlements for employees of commercial State bodies, which includes Aer Lingus and Aer Rianta, are matters primarily for the trustees, the members of the relevant scheme and the company involved.
I have been advised that neither Aer Lingus nor Aer Rianta is in a position to provide additional payments into the pension fund to meet the claim by the retirees' association. I understand that both companies have been meeting all of their liabilities towards the pension fund in accordance with the rules of the scheme.
There has been no obvious solution to this matter despite detailed examination over the last number of years. Nevertheless I am asking the companies to keep the situation under review.
