Tommy Broughan (Dublin Bay North, Independent) | Oireachtas source

Last Wednesday, my colleague, Deputy Daly, hosted a briefing by members of the Aer Lingus supplementary pension scheme, known as the second scheme, to discuss the serious issues that have emerged relating to the wind-up of the scheme. I attended the briefing. I understand that up to 2,500 workers and pensioners are entitled to a share of the €106 million pension fund, known as Pot B or the Second Scheme, that is currently being wound up.

Members of the scheme raised concerns when they began receiving letters detailing their allocations. They soon realised that there did not appear to be any rhyme or reason to the method of distribution of funds. The distribution had been decided without consultation by the trustees, Irish Pensions Trust.

The second Aer Lingus supplementary scheme was in operation from 2007 to 2014. Aer Lingus paid 4% of pensionable salary on behalf of employees and employees paid 2% in all. Additionally, the Government provided €34 million from the sale of Aer Lingus. It is striking to note the decline in the value of the fund by €2 million to 31 March 2016 and the fact that administrative expenses increased by over 100% between 2015 and the wind-up. When the wind-up was mooted, members believed they would receive their allocated contributions and a fixed percentage of the performance of the scheme, but that has not happened. There has been a total lack of consultation with members. The proposed distribution seems erratic, inconsistent with the principles of the scheme and totally unfair on many members. Deputy Daly gave several examples when she raised the matter with the Taoiseach some days ago.

On behalf of constituents I am calling on the trustees and the regulatory authorities, the Pensions Authority and the Pensions Ombudsman, to investigate the distribution of the second scheme and to explain why no other options were afforded to members, as is usual in many other schemes. Moreover, I want them to explain the accounting and actuarial basis on which the distribution calculation is based. I call on the Minster to ensure such an investigation takes place.

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