Dublin airport: €500m pension deficit

THE joint pension scheme for workers at Aer Lingus, Dublin Airport Authority and the former employees of SR Technics, which has a deficit approaching €500m, could be separated as part of an agreement to solve the funding crisis in the scheme.

The Irish Airlines (General Employees) Superannuation Scheme has been part of talks between staff representatives and the companies to plug the gap and could be separated into three different schemes.

In a letter last month to the scheme's members, the chairman of its board of trustees, Brian Duncan, said the fund didn't meet the minimum funding standards set by the Pensions Board and had until the end of November to come up with proposals to meet the new level.

"The employers are aware that the current benefits under the scheme cannot be maintained without increased funding and if increased funding is not available then benefit changes will be required," Duncan wrote. The companies and unions representing employees are currently discussing funding proposals at the Labour Relations Commission.

If the funding proposal is not submitted the Pensions Board by the 30 November deadline, it could reduce benefits for members not yet in receipt of a pension, Duncan said. Existing pensioners will not see their benefits reduced.