2025 Annual Memorial/Ecumenical Service.
The following covering letter from RASA was sent by post to those who have subscribed to the RASA Pension Fighting Fund, together with a letter from LK Shields Solicitors, a Legal Schedule and the Letter of Claim sent in March 2015
RETIRED AVIATION STAFF ASSOCIATION
COMHLACHAS IAR-FHOIREANN EITILEORACHTA
A.L.S.A.A. COMPLEX, DUBLIN AIRPORT, IRELAND
Website: https://sites.google.com/site/retiredaviationstaffassoc/
24th June 2015
Dear RASA Member / IASS Pensioner,
I am writing to you to thank you for all your positive financial support and commitment to our pension issues and to bring you up to date with where we are in relation to our legal challenge to the recent changes to our IASS pension in payment.
As you may know, in February 2015, at a RASA organised Information Meeting, it was unanimously agreed that we pursue a legal challenge to the unilateral cuts imposed on us in January 2015. These additional cuts were on top of our IASS pensions being frozen (2007), the imposition of a lifetime indefinite reduction for Pension Levy (2011), and legislative changes that reduced our 100% protection/cover for our pensions in payment (2013).
A Section 50 actuarially calculated Minimum Funding Standard debt repayment of €174m has been imposed on approximately 2800 IASS pensioners starting from January 2015. This is a debt we did not know we had. For the first six months of this year we have circa €3m deducted unilaterally from our pension income. This is income we had January to June 2014 but not this year.
A RASA Pension Fighting Fund was established for the purpose of this legal challenge. Your support and financial generosity has been great. Over 1300 pensioners so far have contributed to the fund. This financial support and your commitment have been extremely important. It has allowed for our legal team over the last number of months to do preparatory work for legal action.
On 27th March 2015 RASA issued a letter (circulated via XEI) updating members regarding events since the Information Meeting and to provide responses to various questions raised. The update summarised the Letter of Claim that the legal team issued against the State on behalf of plaintiffs. This Letter of Claim, dated 19th March 2015 is included for your information.
It is anticipated that we should be in a position to issue proceedings in the coming weeks. We have been advised by both Counsel and our legal team to bring an initial application before the Commercial Court seeking entry into the Commercial Court list to deal with this claim. Our legal team are hopeful that this case will be permitted entry into the Commercial Court list but this is not guaranteed. There are costs risks associated with bringing this application. The relevant proceedings and commercial court application are currently being drafted by Counsel.
The legal team has advised that it is not possible to bring a class action under Irish law but it is anticipated that the State will consent to our request to allow this matter to proceed by way of one or perhaps two named plaintiffs. It is expected that all other individual plaintiff members will be identified in a Schedule, attached to the proceedings, by their names and addresses.
Prior to issuing proceedings the legal team felt it necessary to write to each individual who contributed to the Pension Fighting Fund to ensure that each potential plaintiff member fully understands the terms upon which the legal team has agreed to act and the costs risks associated with pursuing complex litigation of this nature. This letter is included with this communication and outlines issues for individuals to consider, including worst case scenarios or ‘nuclear options’, risks and costs. Individuals can also seek independent legal advice before giving their consent to be listed as a plaintiff or alternatively waive the right to obtain independent legal advice. The letter also outlines what happens if the claim is abandoned, for instance in a situation where there is insufficient funds to proceed or insufficient plaintiffs.
LK Shields requires each person to read the documents very carefully. At the end of the Schedule attached to the letter from LK Shields, there is a form that they require everyone who contributed to the Fund to send back within the time frame proposed by the legal team. We want to avoid any delay (where possible) in issuing these proceedings.
It is important that each person returns the form indicating their eligibility (or not) and agreement to being a named plaintiff and therefore to being listed on the schedule attached to the Proceedings assuming the State consents to our proceeding on this basis.
As there is strength in numbers with over 1300 individuals supporting the Fighting Fund it is important that as many as possible of the 1300 individuals who are eligible plaintiffs will respond positively with your continued commitment and support. It is also hoped that others who have suffered reductions to their monthly pension will also consider joining the claim as eligible plaintiffs.
If you have any queries or need clarification you can contact us on telephone number 01-814 4977 between 10:00 and 12:00 on Tuesdays and Thursdays or send an email to rasapension@gmail.com .
Yours Sincerely,
Arthur McSwiney
Chairman
RASA LETTER - FEBRUARY 19 2015 - SENT IN POST
19th February 2015
Dear Pensioner,
PLEASE READ THIS VERY IMPORTANT LETTER
Our recent General Meeting focussed on our current Pension status and on the options open to us to redress the cuts made by the Companies at the end of January.
You will recall that the Trustees in their recent letter to you did not rule out the possibility of further cuts. This underlines the need to take immediate action to protect our pension benefits.
The packed-house meeting endorsed the pursuit of our objectives through the courts. Clearly this can be done only with the financial backing of you, the Pensioners.
To progress our case, RASA has requested a donation of 500 euro per person. Many have paid already, or are in the process of doing so. Contributions can be made in one payment, or by instalments, as suits yourself. You may also use a time limited Standing Order through your bank to our account listed below. However we need the funds as soon as possible to be effective.
If you have already contributed 100 euro we are asking for an additional 400 euro.
All contributions are recorded under your name, where supplied. Funds not used for the legal action will be refunded on a pro-rata basis.
Only those pensioners who have contributed to the fund can be represented by our legal team. It is now clear that if your name is not attached to this case that you cannot benefit from this action.
RASA is very aware that there are many pensioners who cannot afford to pay the above amount. We will, of course, accept any level of contribution to the cause!
If we do not have the correct details for you we apologise and ask you to send your current information to RASA to revise our records.
We have engaged a legal team to pursue this action on your behalf as mandated by the general meeting. We need funds to keep this going, so hesitate no longer!
PLEASE MAKE THAT CONTRIBUTION THIS WEEK.
Sincerely,
Arthur McSwiney P J Smyth
Chairman Treasurer
Please send your Subscription by Cheque to RASA Fighting Fund at the above address or by Bank Transfer (EFT) to:
Bank/Branch Bank of Ireland, Malahide
Account Name R.A.S.A.
Account No 7963 8102
Sort Code 90 06 07
IBAN IE43 BOFI 9006 0779 6381 02
BIC BOFI IE2D
Reference Include your SURNAME, First Name and Pension or Staff Number
RASA STATEMENT – FEB 4 2015
IASS PENSIONERS PROCEEDING TO LEGAL CHALLENGE
A packed meeting of IASS pensioners was held at ALSAA complex Dublin Airport Monday.
The meeting was convened by RASA, Retired Aviation Staff Association immediately after cuts to monthly pension income were implemented following acceptance by the Pensions Authority of a funding proposal put forward by Aer Lingus, daa and Irish Airlines Pension Limited (the "IASS Trustee").
RASA’s Legal advisors, Senior Counsel and solicitors, L K Shields, attended the meeting. Senior Counsel, John Hennessy, in his introductory remarks to the meeting summarised the complaints of pensioners and the legal process involved in a legal challenge against a number of potential defendants. This was then followed by nearly two hours of questions and answers from pensioners.
The RASA pensioners present agreed unanimously at the meeting to proceed to a legal challenge. A Pension Fighting Fund has been established and donations are requested. Details of where donations can be made are available on RASA’s website retiredaviationstaffassoc.
Issued by RASA, 4 February 2015 Contact details: Paddy Kilduff - 086 820 7465 paddykilduff@ymail.com
Background notes to these cuts for Editors.
RASA understands that the reduction in the commitment to IASS pensioners, resulting from approval by the Pensions Authority of the proposals agreed by Aer Lingus, daa and the IASS trustee has been actuarially calculated at c. €174m on the statutory funding standard basis ("MFS"). The reduction to Aer Lingus and related employers is estimated at c. €129m, and the daa reduction at c. €45m. The effective result of a reduction in this commitment is that this liability has now been transferred to pensioners by the employers and the IASS trustee,.
The cuts to pensions commenced this month and are in addition to the Government Pension Levy which also increased this month.
The cuts to pensioner income followed extensive engagement and negotiations to reduce the MFS deficit within the IASS pension scheme (estimated to be c.€750 million). The parties included Aer Lingus, daa, IASS Trustee, Trade Unions, Labour Court and a Government Expert Panel but did not include pensioners, despite numerous requests from RASA to be a party to these negotiations. The State (the owner of daa and major shareholder of Aer Lingus) introduced legislation in July 2014 - the State Airports (Shannon) Act 2014 – which removes the necessity to seek the consent of IASS pensioners prior to cutting their pensions.
The Pensions Authority has agreed to what appears to be an unprecedented 25-year recovery plan which sees a partial buy-out of IASS liabilities to deferred and active members by way of individual compensatory payments by both Aer Lingus and Daa at a discounted ‘negotiated’ price requiring individual acceptance by those members. These payments (totalling c.€250 million) are being paid outside of the IASS. There have been no similar engagements, negotiations or agreements reached with IASS pensioners
RASA STATEMENT – 05JAN15
NO RESOLUTION FOR IASS PENSIONERS YET
IASS ANNUAL PENSION CUTS IN JAN 2015 WITH NO MITIGATION!
IASS retirees, who are receiving and promised “pensions fixed in monetary terms and payable for the remainder of the beneficiaries’ lifetime”, will see these cut this month by up to six week.
Employers, Aer Lingus and daa, their shareholders, Trade Unions and the pension fund trustees have all agreed amongst themselves to unilaterally reduce the Pension Savings Funds of the majority of pensioners. These pensioners, who are members of IASS, Aer Lingus S1/S2 Funds and daa ARSS pension funds, had no negotiations, no vote, no voice, in these cuts.
All these stakeholders seem to have agreed amongst themselves that pensioners, many in their 70s or 80s, are an ‘easy’ target for this confiscation without any mitigation for these losses.
The pension fund trustees and the employers, Aer Lingus and daa, submitted a Pensions Act Funding Proposal/Section 50 to the Pensions Authority for approval of the liability reductions of the Pension fund by way of cutting pensions. The proposal is to take €175m from pensioners unilaterally without their input, or say.
Pensioners wrote in their hundreds to the trustees and to the Pensions Authority and others before and during the statutory ‘consultation’ period. They objected to the cuts outlined in the Aer Lingus/daa and Trustees Funding Proposal/Section 50 submitted to the Pensions Authority. All of their submissions were effectively ignored as the joint trustee/employer proposals were unchanged by them and approved unchanged by the Pensions Authority,
In January 2015 non pensioner members of IASS Pension scheme received detailed financial information outlining individual compensation amounts as agreed between the Employers and Trustees for the reductions in their individual liabilities within the IASS pension fund.
There are no side benefits, such as compensation funds from employers to pensioners, or of guarantees that their reduced monthly pension income will be safe if the investment returns fail to achieve the targets assumed by the employer/trustees plan.
Pensioners are being told to keep control of their finances to avoid financial abuse. So far control of their Defined Benefit Pension Savings Fund has not happened. In fact they are deliberately made voiceless victims of the so-called ‘resolution of IASS deficit’.
Issued by RASA, 5th January 2015
Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
December 23/24 2014
RASA STATEMENT
PENSIONS AUTHORITY APPROVES PENSIONERS PENSION ANNUITY TO BE CUT BY SIX WEEKS FROM JANUARY 2015.
A great Christmas present for aviation pensioners from the Pensions Authority, daa and Aer Lingus, trustees and shareholders for 73 year old pensioners.
This time last year all pensioners received a Christmas present from the Government with the signing on Christmas Day 2013 of legislation to cut pensioners private pensions.
This year Christmas 2014 those on pensions in IASS are being told their pensions are being cut by six weeks in January 2015. A small number will see cuts of up to 12 weeks.
This is happening despite all the hundreds of letters sent to the Pensions Authority, employers and trustees during the ‘consultation’ period. All of these comments were ignored.
These pensioners are the only group within the IASS pension fund who were not considered wordy to be part of the Communication Roadshows where daa/Aer Lingus and trustees met with active and deferred members.
These pensioners are also the only group who will receive no compensation to mitigate against their actual losses.
RASA are of the view that these cuts are the beginning of many cuts for all those receiving a PENSION ANNUITY
RASA has stated that the fight continues.
They would like as many people as possible to help with this fight and RASA has set up a Pension Fighting Fund and requesting donations of €100 from all pensioners and friends. Details on Retired Aviation Staff Association website.
Issued by RASA, 24th December 2014
Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
December 10 2014
RASA STATEMENT
AER LINGUS SHAREHOLDERS VOTED TO CUT PENSIONERS INCOMES BY SIX WEEKS FROM JANUARY 2015.
Aviation pensioners, whose average age is 73 years, will see their income cut by the equivalent of six weeks per year in 1 January 2015 following an Aer Lingus EGM today.
Institution shareholders, asset managers of pension funds, Government and shareholders voted at an EGM of Aer Lingus shareholders to cut pensioners pensions.
The EGM meeting voted in favour of paying compensation to non pensioners, active and deferred members, to mitigate against some of their potential loss in the future.
and no compensation to pensioners for their actual losses.
Following a meeting of pensioners at the Airport where they heard the Retired Staff Association’s actuary outline all the risks for them in these proposals pensioners staged a protest outside the Airport Radisson Hotel where the EGM was being held.
Aer Lingus shareholders were handed leaflets as they entered the hotel and a letter of protest was given to the Aer Lingus Chairman, Mr Colm Barrington.
RASA has stated that the fight continues and has set up a Pension Fighting Fund and requesting donations of €100
Issued by RASA, Dec 10 2014
Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
Nov 19 2014
RASA STATEMENT / PRESS RELEASE
MINISTERIAL ORDER CUTS IASS PENSIONERS INCOME BY 6 WEEKS
EMPLOYER CONSIDERING HOW TO SPEND THE MONEY THAT SHOULD BE GOING TO PENSIONS!!!
The Minister for Transport, Tourism & Sport signed a Ministerial Order on November 18 2014 to cut the pensions of pensioners in the IASS pension scheme. The Trustees have submitted a funding proposal last Friday 14th November 2014 to the Pensions Authority.
Aviation pensioners, whose average age is 73 years, will see their income cut by the equivalent of six weeks in 1 January 2015. This is an income that has been static and flat since 2007.
RASA wishes to make it clear that there are no funds from the employers going into the IASS fund to address the actuarially calculated deficit. The Funding Proposal to the Pensions Authority only deals with benefit cuts.
The monies that are talked about are the amount of compensation funds negotiated by employers with Trade Unions which are going in some way towards mitigating against the potential losses in respect of deferred and active members.
There is no such mitigation for pensioners who are in their 70’s/80’s/90’+ . Pensioners have had no voice, no vote, deliberately excluded by the Employer/Trustee and not involved in any communication roadshows . However they are being hit with a reduction in the capitalised value of their pension benefit of €175m.
Following Trade Union members votes to cut pensioners pensions without compensation the Aer Lingus shareholders will now vote on December 10 2014 for the same.
The Company is already considering how to spend the money from these pensioner benefit cuts!!.
Issued by RASA, 18th November 2014. Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
Nov 14 2014
RASA STATEMENT/PRESS RELEASE
PENSIONERS’ PAY CUTS
PENSIONER’S VOICE IGNORED!
In a recent letter to Aer Lingus/daa pensioner members the Trustees of the IASS Defined Benefit Pension Savings Fund stated that they will be going ahead with proposals to cut pension payments by the equivalent of six weeks in every year for the rest of their lives from 1 January 2015.
The Retired Aviation Staff Association (RASA) and their members are not surprised that the recent four week consultation process required by the Pensions Authority regarding these planned cuts changed nothing. A large number of comments and observations were made by pensioners during this consultation period. However all were ignored.
The Trustees are now going ahead and unilaterally propose to deduct six weeks from pensioner’s current annual pension income. This pension for life was subscribed and paid for during employment on a formula agreed between the employers and the actuary, and approved by governments of the day, for agreed pension amounts. The annual amount for life was confirmed for each pensioner on the day of retirement.
The Trustees’ proposal would leave pensioners at risk of further cuts if the fund does not produce projected investment returns and/or match actuarial assumptions. RASA has now written to the Pensions Authority regarding the proposed Funding Proposal.
The Trustees’ letter also stated they will now be submitting a funding proposal to the Pensions Authority that will unilaterally redirect €175 million from pensioners’ accumulated pension savings towards the resolution of a fund deficit calculated under the Pensions Authority’s Minimum Funding Standard calculation rules the calculation of which assumes the scheme is wound up.
Shareholders in Aer Lingus/daa will soon be asked to vote to cut pensioners’ annual income by six weeks. The Minister for Transport, Tourism & Sport will also be asked to approve thesepension cuts.
RASA, on behalf of IASS pensioners, is now moving forward with their legal advisers with a view towards protecting pensioners’ income.
Issued by RASA, 14th November 2014
Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
November 5 2014
PRESS RELEASE
BIG PENSION GRAB – AIRPORT TRADE UNION MEMBERS
VOTE TO CUT PENSIONERS INCOME BY SIX WEEKS.
Seventy percent (70%) of Aer Lingus current employees have voted to cut pensioners annual income by six weeks starting next January 2015. DAA employees have yet to vote.
A large amount of pensioners’ capital, €175m, has been redirected away from the pensioners defined benefit pension savings fund without their permission. This is a unilateral decision by the Employers, IASS Trustee, Trade Unions and all those involved in what they describe as a ‘resolution of the IASS deficit’ as defined by the Minimum Funding Standard calculation rules. This is a standard for the wind up of the scheme.
At a meeting of the Retired Aviation Staff Association (RASA) members, after their Annual Ecumenical Remembrance Service this week, pensioners expressed extreme anger at these unilateral actions to raid and cut their annual pension income by six weeks.
Pensioners had no involvement whatsoever in any of the resolution negotiations leading up to the decision to cut their income. They are the only group of members of the IASS pension scheme where the employers (Aer Lingus/DAA) decided not to provide any compensation to mitigate against these extreme cuts of six weeks of their current pension per annum for every year the pensioner lives after January 2015.
Issued by RASA, 5th November 2014.
Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com
COMHLACHAS IAR-FHOIREANN EITILEORACHTA
RETIRED AVIATION STAFF ASSOCIATION
A.L.S.A.A. COMPLEX, DUBLIN AIRPORT, IRELAND
Ph (01) 8144977.
Email rasadub@gmail.com
Twitter:@rasatweet
Website: https://sites.google.com/site/retiredaviationstaffassoc/
GO TO SIDE BAR TO READ UPDATE OF MEETING
IASS PENSION UPDATE – 5 Sept 2014
Further to the Update circulated on 22nd August 2014 we have arranged to have an
Information Meeting for RASA members on
Tuesday, 23rd September 2014 at 11:00
in the Banqueting Room in ALSAA at Dublin Airport.
We understand that the Trustee of the IASS will shortly be sending out details of the SAVAGE CUTS to our pensions from the 1st January 2015 next.
A table showing the impact of these cuts is shown below. [*click on attachment at bottom of page]
It is important that members respond to the Trustee letter but not until after you have attended the meeting and get clarification of the impact of the Trustee Proposals on your future income.
RASA has received advice from legal and actuarial professionals, which will be explained at the Meeting.
As we are progressing with legal action on your behalf we need to increase the RASA Pension Fighting Fund to defend your interests.
We are now asking each RASA member to donate €100 towards the legal costs and are setting up a Special Bank Account for these funds, details of which will be circulated when available.
Meanwhile you may send your donation to RASA by cheque to the above address or drop it in to the RASA office on Tuesdays or Thursdays between 10:00 and 12:00.
Please tell you colleagues who do not get the XEI Newsletter about the Meeting and the proposed Cuts.
RASA request that any queries you have should be emailed direct to rasadub@gmail.com
Chairman, RASA
5th September 2014
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IASS PENSION UPDATE - August 22 2014
RASA has learned that the Trustees, along with the IASS sponsoring employers and ICTU, intend to apply SAVAGE CUTS to our pensions from the 1st January 2015 next.
These savage cuts will reduce your pension even more, which is on top of the Government Pension Levy already being taken from your pension. Higher levy cuts will apply in January 2015 and January 2016.
In effect these savage cuts will mean you receive 10.5 months' salary to cover you for 12 months.
For information NO MONIES will be paid by the sponsoring employers, Aer Lingus, DAA/SAA, SR-T into IASS fund - our pension fund. Employers have continuously insisted they have no responsibility for pensioners and refuse to put any money into our fund.
We intend calling a meeting of members following our upcoming meeting with legal and actuarial advisors. We ask you all to update any pensioners they know but bear in mind that those pensioners under €12,000 per year or €230 per week will not be subject to the 10% cut. The very small numbers of pensioners who have in excess of €60,000 are aware of their situation.
We will issue a separate table* so that all pensioners can see the effect of the cuts on their income.
RASA request that any queries you have should be emailed directly to rasadub@gmail.com
Chairman, RASA
August 22, 2014
* click on attachment to this page.