Row erupts over Aer Lingus pension pot
A MAJOR row has broken out at Dublin Airport over a special pot of pension money that is being shared out among Aer Lingus workers.
About 2,300 staff will receive their share of a €100m-plus pension pot, known as Pot B, which is now being wound up.
Staff will receive on average €40,000 each from the special supplementary pension. It was established eight years ago with a €34m Exchequer payment to compensate workers for the Aer Lingus flotation and to prop up its then ailing defined benefit pension fund.
Pot B’s investment performance has been strong — up €14m in 2015 alone — leaving members with a big return on their 2pc of salary contributions over the last eight years, further boosted by a 4pc contribution from Aer Lingus. Each worker’s total share is now to be transferred into their new defined-contribution schemes.
But huge discrepancies have emerged in what each member will actually receive after trustee Irish Pensions Trust wrote to members last week detailing amounts. This newspaper has seen numerous examples of letters to individuals that show huge differences — even between individuals with very similar age and service profiles.