Finian McGrath (Dublin North Central, Independent)
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166. To ask the Minister for Transport, Tourism and Sport if he will not cut an airport pension by 60% in respect of a person (details supplied) in Dublin 3; and if he will make a statement on the matter. [39445/14]

Finian McGrath (Dublin North Central, Independent)
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167. To ask the Minister for Transport, Tourism and Sport if he will support a matter regarding the Irish aviation superannuation sheme pension issue (details supplied); and if he will make a statement on the matter. [39491/14]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 166 and 167 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 you that I do 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, 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.

In their discussions with the deferred members, the Expert Panel explained that the process was an industrial relations process and that responsibility for dealing with the deferred members of the scheme rested with the IASS Trustee through engagement with the employers.  Nothwithstanding that strict legal position, the Panel recommended, inter alia, that the IASS Trustee engage with the employers on ways to alleviate as much of the impact of the Trustee proposal as is possible whilst also recognising the overall affordability to the employers of the proposals for actice and deferred members.  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 and which goes a long way towards mitigating the benefit cuts proposed by the IASS Trustee.

I also understand that discussions are ongoing between the Department of Jobs, Enterprise and Innovation and the Department of Social Protection in relation to access of former employees, in particular deferred pensioners and pensioners, to the industrial relations machinery of the State.

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.