Dáil Éireann Debate, Thursday - 17 July 2014
755. Deputy Michael McGrath asked the Minister for Transport, Tourism and Sport the steps he is taking to ensure the deferred members of the Irish airlines superannuation scheme are treated in a fair and equitable manner; and if he will make a statement on the matter. [32032/14]
View answerResolution of the funding difficulties in the Irish Airlines Superannuation Scheme (IASS), where there is a deficit of over €760m, is a matter for the Trustees, the companies participating in the Scheme, the members and the Pensions Board. The deficit in the scheme has arisen over the years as the companies and the members did not put enough into the scheme to match the benefits that were expected/promised.
There are over 5,000 deferred members of the scheme and I do understand their concerns in relation to the funding of the scheme.
Following consultations between my Department, the Department of Jobs, Enterprise and Innovation, the Irish Business and Employers’ Confederation and the Irish Congress of Trade Unions, an Expert Panel was set up in March to investigate how a resolution of the industrial relations issues relating to the IASS could be found. The Expert Panel presented its final report on 16 June last and this is available on my Department’s website. During its investigations, the Panel met with all the stakeholders and parties involved, including representatives of the deferred pensioners.
I welcome the responses from Aer Lingus and DAA, the two main employers in the Scheme, to the recommendations of the Expert Panel. The CEO of Aer Lingus has stated that Aer Lingus and the Company accepts the recommendations of the Expert Panel, albeit reluctantly, and that the company considers that this is the only solution that is capable of gaining acceptance by all of the parties involved.
The DAA has stated that, although it will continue to review the Report, it also believes that the Panel’s recommendations represent ‘the basis for a final and complete resolution of pension arrangements’. The DAA has also re-affirmed its commitment to engage with all stakeholders.
I would urge all other parties involved to also accept the Panel’s recommendations as I believe that this represents the best and last opportunity to resolve the long-standing difficulties in the IASS and give people certainty about their future pension entitlements.
