Shane Ross (Dublin South, Independent)
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224. To ask the Minister for Transport, Tourism and Sport the position regarding the issue of Aer Lingus deferred pensions; if he plans to sign the ministerial orders which have been recently enacted in the State Airports (Shannon Airport) Act 2014 despite the detrimental effect it could have on deferred members; and if he will make a statement on the matter. [40572/14]

Paschal Donohoe (Dublin Central, Fine Gael)
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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 in the first instance by the trust deed and rules of a pension scheme. In this regard the trustees of the scheme must, in the management of the scheme, act in the best interests of all scheme members and beneficiaries.   Trustees of a pension scheme must also comply with the provisions in the Pensions Act 1990 which, among other things, sets down certain requirements in relation to the funding of pensions scheme. The funding requirements under the Pensions  Act essentially provide a ‘health check’ on the  funding level in a pension scheme and provide an indication to the trustees that action is required if the funding level falls below the requirements of the Act.   Matters relating to the provisions in the Pensions Act are the responsibility of my colleague, the Tánaiste and Minister for Social Protection.  I understand that a number of  changes have been made to the Pensions Act in recent years to assist, and to provide additional options to, employers and  the trustees of pension schemes to address the funding  challenges facing many schemes.  

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.  Notwithstanding 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 active 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.   

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 have received by now 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.