Brian O'Shea (Waterford, Labour)
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Question 44: To ask the Minister for Transport if he will report on his recent meeting with RASA; the main issues discussed and the steps he will take to address these issues; and if he will make a statement on the matter. [9670/05]

Martin Cullen (Waterford, Fianna Fail)
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I refer the Deputy to my reply to Question No. 325 of 22 March 2005, which stated: 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, that is, 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.