Pat Breen (Clare, Fine Gael)
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Question 325: To ask the Minister for Transport the steps that have been taken to restructure the airlines pension to include inflation and salary related indexation; the way in which requests of Retired Aviation Staff Association are being addressed by his Department; and if he will make a statement on the matter. [8798/05]

Olivia Mitchell (Dublin South, Fine Gael)
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Question 327: To ask the Minister for Transport if he is aware of the pension concerns of the members of the Retired Aviation Staff Association; his views on whether the concerns raised by the group are bona fide; if he will address these concerns; if so, the proposals that are being advanced by his Department to resolve the grievances; and if he will make a statement on the matter. [8827/05]

Joe Higgins (Dublin West, Socialist Party)
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Question 336: To ask the Minister for Transport if he has recently had a meeting with the Retired Aviation Staff Association concerning the long standing claim of Aer Lingus and Aer Rianta pensioners for restructuring of the airline's pension fund to include CPI and salary related indexation; the action he intends to take to resolve this issue; and when he expects to take action. [8971/05]

Dan Boyle (Cork South Central, Green Party)
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Question 341: To ask the Minister for Transport the measures he is taking to meet the Aer Lingus and the Aer Rianta pensioners' claim for restructuring of the airlines pension fund to include the consumer price index and salary related indexation. [9075/05]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 325, 327, 336 and 341 together.

I am aware of the views of the Retired Aviation Staff Association, RASA, on the Aer Lingus and the Dublin Airport Authority, DAA, formerly Aer Rianta, pension scheme for general employees. These pensioners are seeking enhanced benefits under the scheme, i.e., guaranteed CPI and salary indexation. However, pension entitlements for employees of commercial State bodies, including Aer Lingus and the DAA, are primarily matters for the trustees, the members of the relevant scheme and the company or companies involved.

The pension scheme in question, the Irish airlines (general employees) superannuation scheme, is a multi-employer scheme which, in addition to Aer Lingus and DAA staff, also includes a private sector company, SR Technics, formerly FLS Aerospace. A key issue is that the scheme cannot be amended without the consent of all participating employers and a majority of members. This means that no employer is in a position to negotiate exclusively with its employees as to their pension entitlements.

The rules of the scheme do not provide for automatic pension increases in line with salary movements or the CPI. However, the practice by the trustees under the scheme has been to provide increases in line with the CPI to pensions in payment. These increases are not guaranteed and not explicitly funded but depend on the performance of the pension fund and are paid at the discretion of the trustees of the scheme.

Numerous meetings have taken place between RASA representatives and the companies and also with previous Ministers and officials from my Department and the Departments of the Taoiseach and Finance to discuss this matter. I met representatives of the group on 19 January 2005. Despite detailed examination, there has been no obvious solution to the RASA concerns. However, I indicated at that meeting that I would keep the matter under review with the companies concerned. Legislation has been put in place to enable both Aer Lingus and the DAA to establish new pension schemes for their own employees and pensioners. This was provided for in the Aer Lingus Act 2004 and the Air Navigation and Transport (Amendment) Act 1998, as amended by the State Airports Act 2004. However, it is a matter for the companies concerned to decide if and when a new pension scheme, or schemes, are to be established and the terms of any such schemes would be a matter for consultation with unions. The normal arrangement where pension schemes of State bodies must be approved by the Minister for Transport, following consultation with the Minister for Finance, will continue to apply. There is no guarantee that RASA's concerns can be addressed in any new schemes that might be established.

In the event of any new scheme or schemes being established, the Acts referred to previously provide that existing pensioners who come within the scope of the existing scheme will be transferred to the new scheme, unless they elect to remain in the existing scheme. The Acts also ensure that the benefits granted under such a new scheme, or schemes, shall not be less than those granted under the existing scheme.