Aer Lingus and DAA urged to plug pension deficit

Aer Lingus and the Dublin Airport Authority should significantly increase their financial contributions aimed at dealing with a €760 million deficit in the pension scheme at the companies, a new expert group report has urged.

The report recommends Aer Lingus should increase its contribution in relation to serving staff from €110 million to €146.7 million.

It says the Dublin Airport Authority should raise the amount it would have to put up from €50 million to €57.3 million.

The report says if this "final initiative" aimed at dealing with the issue over the joint pension was unsuccessful, the trustee of the pension scheme would immediately proceed with a submission to the Pensions Authority with plans to bring it back into the black.

It said this would involve "freezing the Irish Aviation Superannuation Scheme for future service, no future accrual, no future re-valuation, removal of uncordination adn a 20 per cent cut in accrued benefits".

The expert panel also urges the trustee should meet Aer Lingus and the DAA to discuss funding arrangements for former staff who have left the companies but not yet retired.

The DAA said it would review the recommendations put forward by the expert group.