Dáil Éireann Debate, Wednesday - 20 March 2024
201. Deputy Joe Carey asked the Minister for Transport if he will request the board of a company (details supplied) to comply with the spirit of the Mulvey report 2023 and provide a pension increase in 2024 for pensions in payment to pensioners of the IAA in line with the pension increase recommendations within the report; and if he will make a statement on the matter. [13136/24]
View answer202. Deputy Joe Carey asked the Minister for Transport if he will instruct the board of a company (details supplied) to provide an amount within the Eurocontrol user charge unit rate air navigation charging mechanism, to ensure that current pensions in payment to pensioners of the IAA receive occasional pension increases concurrently with the occasional pay increases received by their colleagues still working within the State's air navigation and regulation services, in light of the huge increase since the Covid pandemic ended in the demand for commercial and leisure air travel and in light of the significant rise in consumer inflation for pensioners; and if he will make a statement on the matter. [13137/24]
View answerI propose to take Questions Nos. 201 and 202 together.
From 1 May 2023 responsibility for past pensionable remuneration for all Irish Aviation Authority (“IAA”) staff, transferred from the IAA to AirNav Ireland.
In line with the Rules of the Pension Plan any increases to pensions in payment are at the discretion of AirNav Ireland, and where proposed are subject to ministerial approval.
I understand that in 2014 in the light of adverse market conditions and falling bond yields, the Board of the then IAA took a decision to cease accruing for discretionary increases to pensions in payment. The decision followed agreement with the Staff Panel of Trade Unions in 2011 on a Pension Recovery Plan to address a significant deficit in the Main Pension Plan. The Pension Recovery Plan covered the period 2011 to 2018. It was necessary to agree a second Pension Recovery Plan in 2019 which remains in place until 31 December 2024.
Both pension recovery plans, which were concluded with consent of Pension Trustees, do not provide for increases to discretionary benefits.
The priority of AirNav Ireland has been to protect core pension benefits.
I understand that the solvency of the pension plan has improved significantly of late and, in this regard, the Board of AirNav Ireland approved a 2% increase to pensions in payment with effect from 1 January 2023. This increase was implemented following ministerial approval. An increase in respect of 2024 is also being considered.
A large portion of AirNav Ireland income derives from regulated charges applied for air traffic control services which it provides in Irish controlled airspace. These charges are set at EU level, in accordance with an economic regulatory process administered by the EU Commission ('Performance Plan' process). In setting the charges, a whole range of costs and service level issues are considered and subject to detailed analysis, including staffing costs and pensions costs.
AirNav Ireland has indicated it is considering development of a Pensions in Payment Policy to align with the next Performance Plan period, commencing 2025.
