Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

I welcome the opportunity to speak on the Workplace Relations Bill and would like to refer, in particular, to the question of pensions and the wholesale destruction and closure of pension schemes and the changing of schemes from defined benefit to defined contribution schemes, which has been ongoing in the workplace over the past number of years. Those changes mean huge losses for workers in those schemes.

I refer specifically to the huge loss being proposed for deferred pensioners under the Irish Airlines Superannuation Scheme, IASS. These pensioners are being treated particularly badly, are being discriminated against and are suffering huge losses under the scheme. The long serving deferred, as they are known, face the greatest loss because the co-ordination deduction is at the highest level possible for them. They will not benefit from the re-evaluation included in the expert panel recommendations as that does not commence until after five years. It is quite clear that deferred pensioners have been targeted because they have no power and no representation. It is essential that they are treated fairly and equitably and that amendments are made to legislation to ensure that is the case.

I would like to put on the record details of pensioners who have been in touch with me in regard to this issue. One pensioner said they were looking for equitable treatment for deferred pensioners, that they were employed by Aer Lingus for 40 years and were also a member of the pension fund for 40 years. They said they were now 64 years of age, were encouraged to take redundancy at the age of 60 and were provided with a contract guaranteeing their Aer Lingus pension and old age contributory pension. They also said they have now been informed by the pension fund that they will lose 50% of their pension and that if they had already been receiving a pension, they would only lose 10% and that as deferred members of the scheme who worked for Aer Lingus in England are guaranteed the same rights as pensioners, it seems grossly unfair that deferred pensioners in Ireland are not protected.

Another lady wrote to me saying that she was a deferred member of the IASS, that she was 59 years of age and that when she was made redundant, she was guaranteed that she would receive her full unco-ordinated pension when she reached the age of 65. It is proposed that her pension entitlement will now be reduced by 64% and she said she cannot survive such a draconian pension cut. She went on to say that on her death, her spouse will be expected to live on 50% of the proposed savagely reduced pension. She said that employees of Aer Lingus and the Dublin Airport Authority will be entitled to jobseeker's benefit until they reach the State pension age of 66, 67 or 68, whichever it may be, but her pension will have the State pension proportion deducted from the date she receives her first payment.

These pensioners are being very badly treated and are being discriminated against. I urge the Minister of State and the Tánaiste to ensure an amendment is brought forward to ensure these pensioners get fair and equitable treatment under the schemes.

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