Dáil Éireann Debate, Thursday - 18 September 2014
258. Deputy Finian McGrath asked the Minister for Transport, Tourism and Sport if he will provide an update on a matter (details supplied) regarding the Irish aviation superannuation scheme; and if he will make a statement on the matter. [34874/14]
View answer272. Deputy Terence Flanagan asked the Minister for Transport, Tourism and Sport if he will provide an update regarding the Aer Lingus pension scheme and deferred pension scheme in view of the current difficulties; and if he will make a statement on the matter. [35053/14]
View answerI propose to take Questions Nos. 258 and 272 together.
Resolution of the funding difficulties of the IASS is primarily a matter for the Trustee, the companies participating in the scheme, the scheme’s members and the Pensions Authority. The process currently underway involves all these stakeholders.
Pension schemes are closely regulated under Irish and European pension law and the Pensions Authority is the national statutory regulatory authority in Ireland. There are prescribed procedures and limitations in place governing any reductions in pension rights introduced to address funding difficulties in a scheme such as the IASS. Policy in this regard is primarily a matter for my colleague the Tánaiste and Minister for Social Protection.
It has been clear for a long time that any solution to the complex problems of the IASS requires significant contributions from both employers and members of the scheme. Earlier this year an Expert Panel was established by my Department, along with the Department of Jobs, Enterprise and Innovation, IBEC and ICTU. The Expert Panel built on the 2013 Labour Court recommendations and the summary of a draft funding proposal put forward by the Trustee in February this year. The Expert Panel was tasked with finding the fairest way to distribute the burden, while addressing a range of other impediments.
This week the principal employers have written to the members of the scheme informing them that an agreement has been reached with the Trustee on comprehensive pension changes, based on the Expert Panel's recommendations. The letter outlines the various stages of the process going forward. Later this month the Trustee will formally put forward its funding proposal, for consideration as part of a statutory consultation process, which all members are open to participate in. Each member will also receive a personalised illustration of future pension benefits. The target date for implementation of the proposals remains 31 December 2014.
Huge efforts have been put in by all concerned over many years in an attempt to resolve the scheme's funding problems. Over the coming weeks a set of clear proposals will be put forward, which offer the best chance to resolve the long-standing problems of the scheme and give the members certainty about their future pension entitlements, and I would urge all parties to accept them.
