Plans to plug €750m hole in Aer Lingus pension scheme rejected
PLANS by Aer Lingus and its unions to plug a €750m hole in its pension scheme have been rejected by the Pensions Board.
The outline of proposals to meet the Minimum Funding Standard for the scheme were not acceptable, the board told the Trustees of the Irish Airlines Superannuation Scheme.
The IASS covers workers in Aer Lingus, the Dublin Airport Authority and the now defunct SR Technics.
"We understand from your presentations that it would be up to seventy years before the scheme would meet the funding standard, and it is our view that such a lengthy derogation from the obligation to meet the funding standard would not be consistent with the objectives of the Pensions Act," the Pensions Board’s chief executive Brenda Kennedy said in a letter to the ISASS.
The board was “broadly happy with other aspects of the proposals and could constitute a reasonable basis for a plan in due course although details would have to further assessed.