Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 27 Mar 2001

Vol. 533 No. 3

Written Answers. - Pension Provisions.

Richard Bruton

Ceist:

45 Mr. R. Bruton asked the Minister for Public Enterprise if she will make arrangements to meet the Retired Aviation Staff Association to discuss its concerns about the offers made to date by Aer Lingus and Aer Rianta with regard to the under funding of pensions by these companies; and if she will make a statement on the matter. [6122/01]

Pat Rabbitte

Ceist:

52 Mr. Rabbitte asked the Minister for Public Enterprise if, in view of her commitments in Dáil Éireann on 19 October 2000 concerning the needs of Aer Lingus and Aer Rianta pensioners, she will outline the position in this regard; and if she will make a statement on the matter. [8716/01]

Richard Bruton

Ceist:

56 Mr. R. Bruton asked the Minister for Public Enterprise her views on the Retired Aviation Staff Association submission which accepted that future indexation of pensions fall to be negotiated between the companies and the unions representing serving employees, but which seeks her assistance in bringing their pensions, which have fallen far behind, up to an equitable starting line. [8690/01]

Ivor Callely

Ceist:

101 Mr. Callely asked the Minister for Public Enterprise if she has been kept informed by Aer Lingus and Aer Rianta of developments to address the issues of concern by the Retired Aviation Staff Association; her understanding of the progress on the issues of concern; and if she will make a statement on the matter. [7887/01]

I propose to take Questions Nos. 45, 52, 56 and 101 together.

I met representatives of the Retired Aviation Staff Association on 10 October 2000 and senior officials from my Department also met the association on 23 October 2000 to hear details of its claim for enhanced pension benefits for Aer Lingus and Aer Rianta pensioners. More recently, officials from my Department met the association on 1 March 2001.

In relation to the pensioners' demands, Aer Lingus and Aer Rianta have both indicated that they are not in a position to meet those demands for ongoing costs reasons and as it would also necessitate a substantial capital injection into the pension fund which they cannot afford. Last week, I received correspondence from the Retired Aviation Staff Association revising its claim for enhanced pension entitlements. I am writing to the chairmen of Aer Lingus and Aer Rianta seeking their comments on the latest proposal from RASA.

In so far as the funding arrangements for the current scheme are concerned, I have been advised that, on the basis of the terms of the scheme, it is not under-funded. According to the most recent actuarial valuation the scheme has a surplus of more than £249 million. Under the rules of the scheme, members pay a contribution calculated as a percentage of their salary. For staff recruited prior to 1970 this contribution is 6.375% while for staff recruited after 1970 it is 5.1% approximately. The employers contribute a similar amount. I have already indicated in replies to a number of parliamentary questions, that Aer Lingus and Aer Rianta are proposing to establish new pension schemes for their serving staff and pensioners. The terms of the new pension schemes are essentially a matter for the companies concerned to negotiate with staff interests taking account of overall Government policy on public sector pensions, affordability and broader industrial relations priorities for the companies going forward.

I understand that Aer Lingus will be resuming discussions with staff interests on a new scheme shortly. It is Aer Lingus's intention to implement the new pension scheme as soon as possible after the IPO of the airline is completed. Existing Aer Lingus pensioners who transfer to the new scheme will receive the improved benefits. In so far as Aer Rianta is concerned, the company proposes to establish a new scheme as soon as possible in consultation with staff interests.

Barr
Roinn