Dáil Éireann Debate, Tuesday - 21 October 2014
599. Deputy Billy Timmins asked the Minister for Transport, Tourism and Sport the position regarding the Irish airlines superannuation scheme in respect of a person (details supplied); and if he will make a statement on the matter. [39789/14]
Amharc ar fhreagra600. Deputy Finian McGrath asked the Minister for Transport, Tourism and Sport if he will resolve the issue of the proposed cuts of 60% of the pension entitlements of deferred members by the trustees of the Irish aviation superannuation scheme by amending the 2009 Pensions Act in order to regroup deferred pensioners with pensioners in payment as has been the case up to 2009 through the provisions of the Social Welfare and Pension (No. 2) Act 2013; if he will not sign the ministerial order and enforce the requirement in the 2014 Act for trustee to have due regard to all member interests; if he will stop the victimisation of IASS deferred members here as those members in the United Kingdom and deferred members prior to 2009 will not be subject to the proposed cuts; and if he will make a statement on the matter. [39872/14]
Amharc ar fhreagraI propose to take Questions Nos. 599 and 600 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 of these stakeholders, including the deferred members.
I can assure you that I do understand the concerns of the deferred members in relation to the funding of the scheme. However, such matters are governed in the first instance by the trust deed and rules of a pension scheme. In this regard the trustees of the scheme must, in the management of the scheme, act in the best interests of all scheme members and beneficiaries. Trustees of a pension scheme must also comply with the provisions in the Pensions Act 1990 which, among other things, sets down certain requirements in relation to the funding of pensions scheme. The funding requirements under the Pensions Act essentially provide a ‘health check’ on the funding level in a pension scheme and provide an indication to the trustees that action is required if the funding level falls below the requirements of the Act. Matters relating to the provisions in the Pensions Act are the responsibility of my colleague, the Tánaiste and Minister for Social Protection. I understand that a number of changes have been made to the Pensions Act in recent years to assist, and to provide additional options to, employers and the trustees of pension schemes to address the funding challenges facing many schemes.
I understand that where a pension scheme operates across EU Member States, the employees who are employed in a different Member State (i.e., the host Member State) may be subject to certain provisions (i.e., the social and labour law relevant to the field of occupational pensions) in that Member State which may provide for a different level of protection of pension rights.
In their discussions with the deferred members, the Expert Panel explained that the process was an industrial relations process and that responsibility for dealing with the deferred members of the scheme rested with the IASS Trustee through engagement with the employers. Notwithstanding that strict legal position, the Panel recommended, inter alia, that the IASS Trustee engage with the employers on ways to alleviate as much of the impact of the Trustee proposal as is possible whilst also recognising the overall affordability to the employers of the proposals for active and deferred members. As a result of that Report, there was an uplift in the monies to be provided by the employers outside of the IASS, a significant proportion of which is intended for the deferred members and which goes a long way towards mitigating the benefit cuts proposed by the IASS Trustee.
The IASS Trustee and the principal employers have recently issued documents in respect of the proposed changes in pension arrangements. These communications mark the commencement of the formal consultation process which the Trustee is required by the Pensions Act 1990 to undertake in respect of the reductions in benefits that it is proposing. Each member will also have received by now a personalised illustration of future pension benefits. All members have been invited to send their views on the proposals to the IASS Trustee by 27 October 2014. 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. A set of clear proposals has now been put forward which offer the best chance to resolve the long-standing problems of the scheme and resolve members’ uncertainties about their future pension entitlements. I would urge all parties to accept them.
