O'Rourke `ignored' airline pensioners

The Minister for Public Enterprise, Ms O'Rourke, was accused yesterday of ignoring repeated overtures by 4,500 pensioners in …

The Minister for Public Enterprise, Ms O'Rourke, was accused yesterday of ignoring repeated overtures by 4,500 pensioners in Aer Lingus and Aer Rianta for increases in line with their public service counterparts.

The Minister's reply to Dail questions on the issue was described as "hypocritical in the extreme" by Mr Emmet Stagg (Kildare North).

The pensioners, members of the Retired Aviation Staff Association, say their pensions have fallen way behind comparable grades in the public service. Before 1970 they were in line with comparable grades throughout the Civil Service.

In 1969, the Department of Finance ruled that pension contributions from employees and employers at Aer Lingus and Aer Rianta should be equalised. Over the years, however, Civil Service pensions moved in line with salaries, and gradually semi-State companies followed suit with employers willingly increasing their contributions to keep pensions in line with earnings.

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In the aviation companies, however, employers and workers continued to pay equal proportions. The Minister told the Dail she had met representatives from the Irish Airlines General Employees' Superannuation Scheme a number of times as had senior officials of her Department.

"In so far as general increases under the IALGESS are concerned, I understand from Aer Lingus that trustees of the scheme have increased pensions in line with the CPI, in keeping with discretions available to them and the rules of the scheme."

On pension enhancement and a new scheme to benefit staff and pensioners, Ms O'Rourke said "the companies' position is that these will emerge from negotiations with representatives of staff". Aer Lingus intended to implement the scheme as soon as possible.