Enda Kenny (Mayo, Fine Gael) | Oireachtas source

This has dragged on for years and has been of great concern to those involved. The deficit is €769 million. We established an expert panel that considered all the combinations and possibilities involved and was able to bring forward a further €20 million. Scheme membership comprises 5,000 active members, 5,000 deferred members and 5,000 pensioners. There is widespread agreement within the Irish Airlines Superannuation Scheme, IASS, that the scheme is unsustainable. The employers are putting in moneys to cushion a move from a defined benefit to a defined contribution scheme. The report of the expert panel recommended that additional moneys be paid to the deferred pensioners, and the employers have agreed to this. Legally, the employers' role is voluntary and there is no legal requirement that they sustain the scheme. The only other option, in the event of current negotiations being unsuccessful, is for the Pensions Authority to wind up the scheme. Legal action by deferred members could undermine the current proposals, which are very finely balanced, and derail the proposals. Yesterday, it was announced that a ballot of members resulted in a 70% vote in favour of the pension deal.

This has gone on for years with no solution. The expert panel that was established made recommendations that further moneys be made available, of which €20 million came forward. The scheme is a multi-employer scheme and its membership comprises employees from Aer Lingus, 69%, the Dublin Airport Authority, 27% and SR Technics, 4%. It carries a deficit of €769 million. The negotiations have gone on for years and have failed to resolve the difficulties with the scheme. There have been intense efforts in recent months to try to resolve the difficulties with the introduction of the legislation and the establishment of the expert panel to report on these matters. The members of the scheme who are unhappy with the situation have sought a meeting and I have had some correspondence from them, to which I intend to respond. At a meeting on 2 October, and in recent representations, deferred scheme members outlined a number of concerns. The situation has been unresolvable for years. The alternative is that the Pensions Authority wind up the scheme completely. It is a very difficult situation with which to have to deal.

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