Written answers

Wednesday, 27 February 2019

Department of Public Expenditure and Reform

Irish Airlines Superannuation Scheme

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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70. To ask the Minister for Public Expenditure and Reform the reason pensioners (details supplied) were not informed before a decision was taken in June 2018 to not permit further transfers to and from the public transfer section and the scheme in view of the fact that the effect of this decision is to reduce member benefits. [9788/19]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In response to a question from the Deputy, on 2 May 2018 I advised the Dáil that

“Irish Airlines Pensions has advised this Department that as a result of the deficit that exists on the Irish Airlines Superannuation Scheme (IASS) pension fund, it is not in a position to fully fund transfers effected through the Public Sector Transfer Network (PSTN).

The rules of the PSTN require a full transfer of pension entitlements. In the case of funded pension schemes, this means that a transfer payment must be made in respect of all pensionable service with the first organisation, calculated in accordance with the relevant actuarial tables under paragraph 16(d) of the transfer scheme rules. Payment of a lesser amount will mean that the funds received by the second organization will not reflect the full service to be transferred.

Accordingly, there is no possibility of transfers involving the IASS being effected within the PSTN under these circumstances”

Irish Airlines Pensions DAC were advised formally of my Department’s position on the IASS membership of the PSTN on 14 June 2018.

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