Dáil Éireann Debate, Thursday - 6 May 2004
171 Ms Shortall asked the Minister for Transport the steps he has taken to ensure that Aer Lingus management addresses long outstanding issues relating to the pension scheme; and if he will make a statement on the matter. [13062/04]
View answerThe current pension scheme for general employees in Aer Lingus (Irish Airlines (General Employees) Superannuation Scheme) is a multi-employer scheme which also includes Aer Rianta and a private sector company, FLS Aerospace. The administration of this scheme is a matter for the trustees of the scheme and the company concerned having regard to the rules of the scheme.
A key issue in relation to the scheme is that it cannot be amended without the consent of all participating employers and a majority of members so that no employer is in a position to negotiate exclusively with its employees as to their pension entitlements.
The recently enacted Aer Lingus Act 2004 contains enabling provisions which allow Aer Lingus to establish new pension schemes for its own employees and pensioners. The Act also ensures that the benefits granted under such a scheme or schemes shall not be less favourable than those granted under the existing scheme.
In the context of any new scheme or schemes being established by Aer Lingus, the Act provides that existing pensioners who come within the scope of the new scheme will be transferred to that scheme unless they elect to remain in the existing scheme. It is a matter for Aer Lingus to decide if and when a new pension scheme or schemes are to be established and the terms of any such schemes would be a matter for negotiations with unions.
