Terence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

278. To ask the Minister for Transport, Tourism and Sport his views on correspondence (details supplied) regarding the Irish airlines superannuation scheme. [38761/14]

Róisín Shortall (Dublin North West, Independent)
Link to this: Individually | In context | Oireachtas source

283. To ask the Minister for Transport, Tourism and Sport the actions he or his Department are taking to ensure that the interests of deferred members of the Irish Airline Superannuation Scheme are adequately protected in any amended pension scheme; and if he will make a statement on the matter. [38819/14]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 278 and 283 together.  

Resolution of the funding difficulties of the IASS is primarily a matter for the Trustee, the companies participating in the scheme, the scheme’s members and the Pensions Authority. The process currently underway involves all of these stakeholders, including the deferred members.  

I can assure the Deputy that I fully understand the  concerns of the deferred members in relation to the funding of the scheme.  However, such matters are governed by the Pensions Acts, which fall under the responsibility of my colleague, Joan Burton T.D., the Tánaiste and Minister for Social Protection. Pension schemes are closely regulated under Irish and European pension law and the Pensions Authority is the national statutory regulatory authority in Ireland.  There are prescribed procedures and limitations in place governing any reductions in pension rights introduced to address funding difficulties in a scheme such as the IASS.   

It has been clear for a long time that any solution to the complex problems of the IASS requires significant contributions from both employers and members of the scheme.  The Expert Panel established earlier this year was tasked with finding the fairest way to distribute the burden, while addressing a range of other impediments. As a result of that Report, there was an uplift in the monies to be provided by the employers outside of the IASS, a significant proportion of which is intended for the deferred members.  

The IASS Trustee and the principal employers have recently issued documents in respect of the proposed changes in pension arrangements.  These communications mark the commencement of the formal consultation process which the Trustee is required by the Pensions Act 1990 to undertake in respect of the reductions in benefits that it is proposing.  Each member will also shortly receive a personalised illustration of future pension benefits.  All members have been invited to send their views on the proposals to the IASS Trustee by 27 October 2014.  The target date for implementation of the proposals remains 31 December 2014.  

Huge efforts have been put in by all concerned over many years in an attempt to resolve the scheme's funding problems.  A set of clear proposals has now been put forward which offer the best chance to resolve the long-standing problems of the scheme and resolve members’ uncertainties about their future pension entitlements.  I would urge all parties to accept them.   

On the basis that the Trustee decides to proceed with changes to the IAS scheme following the consultation process which is underway, I will sign the Ministerial Orders enabling the IAS scheme trustees to amend the scheme.