IASS Co-ordinated/ Integrated IASS Member on Pension in December 2014 & Affect on Public Sector Transfer Network Benefit

REMINDER: Clarification regarding Coordinated members on early retirement pensions in Jan 2015

If you are an IASS coordinated member in January 2015 who left employer with immediate pension i.e.early retirement pension, who has not yet reached normal retirement date, your pension in payment that was REDUCED in Jan 2015 will be further reduced to reflect your coordinated member status [while an active employee your annual % contribution to IASS was reduced to reflect coordinated membership status].

This reduction is in addition to your pension levy DEDUCTION and the SECTION 50 DEBT REDUCTION imposed on your pension income by Employers/Trustees/Pension Authority in January 2015 without your consent. For some pensioners that can be an additional cut of 50%*. Individuals are expected to be informed by the Secretary of the IASS scheme in the month before the reduction is implemented.

There has been no mitigation or compensation for these cuts - the buy-out compensation for reduced benefits provided by employers only available to future pensioners i.e. active and deferred members of IASS who are not in receipt of pension on January 1 2015.

*NOTE: IF YOUR CURRENT PENSION POST PENSION LEVY AND SECTION 50 DEBT CUT IMPOSED IN

JAN 2015 IS FOR EXAMPLE €16,000 AND AT EARLY RETIREMENT YOU HAD 40 YEARS PENSIONABLE SERVICE IT WILL BE CUT BY THE FULL SOCIAL WELFARE OFFSET AND THIS WILL BRING YOUR PENSION DOWN TO €4,000 PER ANNUM.

THERE WILL LIKELY BE A GAP OF MAXIMUM ONE YEAR BEFORE YOUR RECEIVE YOUR STATE CONTRIBUTORY PENSION AT AGE 66 AND AT A HIGHER AGE IN SUBSEQUENT YEARS.

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MAY 2018

PUBLIC SECTOR TRANSFER NETWORK

See latest exchange of PQ [Note: no mention of this during restructuring discussions.]

Link to HSE 004/2015 circular https://www.hse.ie/eng/staff/resources/hr-circulars/circ00414.pdf

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For Written Answer on : 02/05/2018

Question Number(s): 88 Question Reference(s): 19226/18

Department: Public Expenditure and Reform

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QUESTION

To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 383 of 20 June 2017 and other statements from his Department (details supplied), the position regarding persons with this legislation benefit under the Irish airlines superannuation scheme that wish to transfer from IASS to other schemes within the PSTN at full value of their benefits prior to December 2014; and if he will make a statement on the matter. (Details Supplied) In the public service transfer network (PSTN) transfers from funded schemes are processed using what is known as a 16(d) transfer. In a 16(d) case the transfer value is calculated in accordance with the actuarial tables provided under the PSTN. The PSTN has no mechanism for accepting transfers at less than Full Value Circular from DPER dated 12/12/2014 on the subject of PSTN and IASS to all Personnel Officer/HR Managers put all applications for transfer of service under the PSTN on hold till further notice. Individual schemes then informed their organisations of this, for instance HSE circulator 04/2015 on the basis of the notification from DPER not to process any current applications nor accept any further applications for transfer of service under the PSTN and IASS. Being part of the PSTN was a significant benefit enshrined into legislation for members of IASS with significant numbers of members transferring within PSTN to accept transfers at full value of benefits.

REPLY

Irish Airlines Pensions has advised this Department that as a result of the deficit that exists on the Irish Airlines Superannuation Scheme (IASS) pension fund, it is not in a position to fully fund transfers effected through the Public Sector Transfer Network (PSTN).

The rules of the PSTN require a full transfer of pension entitlements. In the case of funded pension schemes, this means that a transfer payment must be made in respect of all pensionable service with the first organisation, calculated in accordance with the relevant actuarial tables under paragraph 16(d) of the transfer scheme rules. Payment of a lesser amount will mean that the funds received by the second organization will not reflect the full service to be transferred.

Accordingly, there is no possibility of transfers involving the IASS being effected within the PSTN under these circumstances.