Finian McGrath (Dublin North Central, Independent)
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372. To ask the Minister for Social Protection the position regarding the Irish airlines superannuation scheme pension (details supplied); and if she will make a statement on the matter. [30952/14]

Joan Burton (Dublin West, Labour)
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I am very aware of the issues arising in Irish airlines superannuation scheme. However, you will appreciate that is it is not appropriate for me to comment on matters relating to an individual pension scheme as these are matters for the management of a company and the trustees of the relevant pension scheme.

I can advise that the trustees of a pension scheme are required under trust law to ensure that the scheme is administered at all times in accordance with the trust deed and scheme rules and in compliance with the requirements of the Pensions Act.

The Pensions Act makes provision in section 50 of the Act for the restructure of scheme benefits in circumstances where the scheme has funding difficulties. Any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Act and with guidance issued by the Pensions Authority. This guidance makes provision for the notification of all scheme members in advance of any application to the Pensions Authority to issue a notice to the trustees of a pension scheme to restructure scheme benefits. In such circumstances, scheme members will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Authority must be satisfied that all the provisions in the guidance are complied with before the Authority will consider issuing a notice to restructure scheme benefits.

The provisions in section 50 of the Pensions Act were amended in 2009 and again in 2013. Prior to the amendments made in 2009, the benefits of active scheme members could only be considered in the context of a restructuring of scheme benefits under section 50 of the Act. This provision was broadened in 2009 to include the benefits of deferred scheme members and future increases in scheme benefits for all scheme members. The Social Welfare and Pensions (No.2) Act 2013 made further changes to section 50 of the Pensions Act and extended the provisions to include a portion of pensioner benefits in any consideration of the restructure of scheme benefits. These changes essentially provide for the sharing of the risk of scheme underfunding across all scheme members. The issue of how these changes might be applied will be a matter for the trustees of the scheme who are required under trust law to act in the best interest of all scheme members. Section 50 of the Pensions Act provides for a higher level of protection for pensioner benefits as it is considered that pensioners are less likely to be in a position to respond to a restructure of scheme benefits.