Timmy Dooley (Clare, Fianna Fail)
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Question 8: To ask the Minister for Transport; Tourism and Sport the status of the pension fund at Aer Rianta and Dublin Airport Authority; and if he will make a statement on the matter. [33455/11]

Leo Varadkar (Dublin West, Fine Gael)
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The Irish airlines (general employees) superannuation scheme, IASS, is a multi-employer scheme involving the employees of Aer Lingus, the Dublin Airport Authority and the now non-operational SR Technics. Following the enactment of the State Airports Bill 2004, all former employees and pensioners of Aer Rianta became employees and pensioners of the DAA and are, accordingly, covered by this same superannuation scheme. DAA pensioners and employees constitute a minority of the members of the IASS. DAA membership constitutes around 27% of the total, with Aer Lingus and SRT representing 69% and 4%, respectively. The scheme is closed to new entrants.

Pension entitlements and pensions in payment under the scheme are primarily matters for the trustees, the members and the companies participating in the scheme. I understand, however, that the trustees for the IASS have advised the participating employers and membership that the preliminary results of the March 2011 actuarial valuation of the scheme indicate a significant deficit as measured using the statutory minimum funding requirement. A final actuarial report is expected by the end of the year. I understand it is expected that the trustees of the scheme will make proposals at that stage on how to address the deficit. I have been informed by the DAA that it continues to work with the other stakeholders to identify solutions and that it remains hopeful of a negotiated resolution of the current pension challenges.

Timmy Dooley (Clare, Fianna Fail)
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I understand there is a deficit of somewhere in the region of €500 million. Obviously, this exerts significant strain on the capacity of the fund to remain solvent into the future. As the Minister said, there is no capacity for future new members, which is one issue. Aer Lingus has been privatised and there is a belief that it has no liability to plug a potential gap. However, I noticed during the week that one of its significant shareholders indicated that Aer Lingus would perhaps make a payment in this regard. Taking this in the context of the Minister's stated intention to progress the issue of the ownership and management of the three State airports, does he believe the State has a liability in this regard? Does he believe it will ultimately, through whatever structure is in place, have to find a way to plug what appears to be a substantial hole?

Leo Varadkar (Dublin West, Fine Gael)
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Both Aer Lingus and the DAA maintain that they have no liability in this regard. We have to wait for the trustees of the pension fund to bring forward their proposals and I have asked for this to be done by the end of the year. That should be done in the normal way. The trustees will put forward options for how the deficit issue can be resolved. I want it to be resolved. DAA staff are employees of a semi-State company, while Aer Lingus staff are employees of a private company. Notwithstanding this, those who have contributed to a pension fund throughout their working lives should have a decent pension.

It is not the case that either the Exchequer or the DAA, a State company, is in a position to bail out a pension fund in significant deficit. This is an issue for An Post and other pension funds, and the ESB may provide the template. It dealt with its pension deficit largely via an agreement under which employees increased their contributions, the terms of the pensions they expected to receive were changed and the company made a contribution. A solution such as this may offer a good model for the companies in question to pursue.