Dáil Éireann Debate, Thursday - 18 September 2014
40. Deputy Billy Kelleher asked the Tánaiste and Minister for Social Protection in relation to the Irish airlines superannuation scheme, if she will consider amending existing legislation to reverse the separation of deferred members from pensioners; and if she will make a statement on the matter. [34901/14]
View answerWhile I am aware of the issues arising in relation to this scheme, you will appreciate that it is not appropriate for me to comment on issues relating to a particular pension scheme as these are matters for the management of the company and the trustees of the pension scheme.
You will be aware that a number of changes were made to the Pensions Act in recent years to assist both the employers and the trustees of defined benefit pension schemes respond to the funding difficulties encountered by many schemes at this time. The Pensions Act was amended in 2009 to broaden the options available to the trustees of a defined benefit pension scheme in any consideration of a restructure of scheme benefits under section 50 of the Act to include the benefits of deferred scheme members and post retirement increases in pension benefits. Prior to the 2009 Act, only the benefits of active scheme members could be considered in a restructure of scheme benefits.
The Social Welfare and Pensions (No. 2) Act 2013 further extended the options available to the trustees of a scheme to include a portion of benefits payable to pensioners.
These changes essentially provide for the sharing of the risk of scheme underfunding across all scheme members. The issue of how these changes might be applied is a matter for the trustees of a scheme who are required under trust law to act in the best interests of all scheme beneficiaries.
There are no plans to review this legislation further.
