RASA UPDATE - LEGAL LETTER ISSUED

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