Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1637. To ask the Minister for Transport, Tourism and Sport his views on the deficit in the Irish Aviation Authority pension scheme; if he understands this scheme to be a defined contribution scheme or a defined benefit scheme; and if he will make a statement on the matter. [37443/13]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am satisfied that the Irish Aviation  Authority (IAA) is taking the appropriate steps to addresss the deficit in its  pension fund. Following an extensive consultation process between the IAA and its staff unions, agreement was reached on a remedial plan in 2010 and subsequently accepted by all parties, including the Pensions Board.  The agreed plan  includes an increase in employee and employer pension contributions as well as a pensionable pay freeze for all staff until the Summer of 2015.  I am informed by the IAA that it is on track to return the pension fund to solvency by 2018.

The IAA currently operates four superannuation schemes all of which are defined benefit schemes apart from its most recent hybrid pension scheme, which comprises both defined benefit and defined contribution elements.  The defined benefit portion of the hybrid scheme applies to earnings below €60,000 with  a defined contribution being applied to earnings above that amount.

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1638. To ask the Minister for Transport, Tourism and Sport his views on the deficit in the Córas Iompair Éireann pension scheme; if he understands this scheme to be a defined contribution scheme or the defined benefit scheme; and if he will make a statement on the matter. [37445/13]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The CIÉ Group operates two defined benefit pension schemes, the Executive scheme and the Regular Wages scheme. The total deficit in the schemes at 31st December 2012, as reported in the 2012 published Accounts, was €491.9m. I met the Chairperson and officials from CIÉ last week and received an update on the deficit in the pensions schemes. I was advised at that meeting that CIÉ had submitted a funding proposal to the Pensions Board to address the deficit and this proposal has been accepted.

Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1639. To ask the Minister for Transport, Tourism and Sport his views on the deficit in the Dublin Airport Authority pension scheme; if he understands this scheme to be a defined contribution scheme or the defined benefit scheme; and if he will make a statement on the matter. [37446/13]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Irish Airlines (General Employees) Superannuation Scheme (IASS) is a multi-employer scheme involving the employees of Aer Lingus, Dublin Airport Authority (DAA), Shannon Airport Authority (SAA) and the now non-operational SRT Technics.

Pension entitlements and pensions in payment under this scheme are primarily matters for the Trustees, the members and the companies participating in the scheme and I have no operational responsibilities in that regard but it is important to state that this scheme is closed to new entrants.

Under the IASS, fixed contributions are payable by the employers and members regardless of the funding position of the IASS. Both the benefits and the contributions are defined within the scheme rules. The scheme is registered and operated as a defined benefit scheme under the Pensions Board criteria due to the benefits it seeks to provide and accounted for as a defined contribution scheme by the sponsoring employers due to the fixed funding covenant.

I understand that the Trustees of the IASS have advised the participating employers and membership that the  results of the March 2011 actuarial valuation of the scheme indicates a significant deficit as measured under the statutory minimum funding standard.

Resolution of the funding difficulties in the scheme is a matter for the Trustees, the companies participating in the scheme, the members and for the Pensions Board.  The parties have participated in discussions with the assistance of the Labour Relations Commission and the Labour Court to identify solutions. Once agreement is reached among all parties, I understand that it is intended that union members will be balloted over the coming months on the proposals.