Dáil Éireann Debate, Wednesday - 18 September 2013
1637. Deputy Sean Fleming asked the Minister for Transport, Tourism and Sport his views on the deficit in the Irish Aviation Authority pension scheme; if he understands this scheme to be a defined contribution scheme or a defined benefit scheme; and if he will make a statement on the matter. [37443/13]
View answerI am satisfied that the Irish Aviation Authority (IAA) is taking the appropriate steps to addresss the deficit in its pension fund. Following an extensive consultation process between the IAA and its staff unions, agreement was reached on a remedial plan in 2010 and subsequently accepted by all parties, including the Pensions Board. The agreed plan includes an increase in employee and employer pension contributions as well as a pensionable pay freeze for all staff until the Summer of 2015. I am informed by the IAA that it is on track to return the pension fund to solvency by 2018.
The IAA currently operates four superannuation schemes all of which are defined benefit schemes apart from its most recent hybrid pension scheme, which comprises both defined benefit and defined contribution elements. The defined benefit portion of the hybrid scheme applies to earnings below €60,000 with a defined contribution being applied to earnings above that amount.
