Archive 2014/2015_RASA Statements_Pension Update

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/

24^th 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 27^th 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 19^th 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

19^th 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, 5^th 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, 24^th December 2014

Contact details: Paddy Kilduff - 086 820 7465 - paddykilduff@ymail.com