Aer Lingus Act 2004

Superannuation schemes.

9.—(1) Aer Lingus may establish one or more than one scheme for the granting of superannuation benefits to or in respect of such employees or former employees of Aer Lingus as it thinks fit (in this section referred to as a “New Scheme”) and any such scheme shall be carried out by Aer Lingus in accordance with its terms.

(2) Every New Scheme shall fix the time and conditions of retirement for all persons to or in respect of whom superannuation benefits are payable under such scheme, and different times and conditions may be fixed in respect of different classes of persons.

(3) Superannuation benefits granted under a New Scheme to or in respect of a person to whom such scheme applies shall not be less favourable than the superannuation benefits granted to or in respect of that person under the Existing Scheme at the establishment date.

(4) In determining the superannuation benefits granted to or in respect of a person under a New Scheme any period of service which was a period of reckonable service for the purposes of the Existing Scheme shall be regarded as a period of reckonable service for the purposes of the New Scheme.

(5) Where Aer Lingus establishes a New Scheme the Company shall, within 60 days following the establishment date of such scheme, issue a notice in writing to each of those persons to whom the New Scheme concerned relates and, subject to subsections (7) and (8), with effect from the transfer date each such person to whom such New Scheme relates shall become and be a member of that New Scheme and cease to be a member of the Existing Scheme.

(6) The Company shall be deemed to have issued a notice to a member of the Existing Scheme if it—

(a) delivers, or

(b) sends by ordinary pre-paid post,

the notice to the last known address held by the Company relating to that person.

(7) A person whose superannuation benefits have come into payment at the establishment date of a New Scheme and to whom a notice is issued pursuant to subsection (5), shall with effect from the transfer date become and be a member of the New Scheme concerned and cease to be a member of the Existing Scheme unless he or she gives written notification to the Company within the period of time specified in the notice (which period shall be not less than 60 days from the date of the issuing of the notice to the person concerned) to the effect that he or she does not wish to become a member of the New Scheme concerned.

(8) A person to whom subsection (7) relates who notifies the Company in accordance with that subsection that he or she does not wish to become a member of the New Scheme concerned shall remain a member of the Existing Scheme.

(9) The Company shall notify the trustees of the Existing Scheme of the persons who are to become members of the New Scheme concerned by virtue of subsections (5) and (7).

(10) Aer Lingus shall, on the establishment date of a New Scheme, establish a fund, administered by trustees who shall be appointed by the Company, from which superannuation benefits payable under such scheme shall be paid.

(11) On receipt of notification from the Company pursuant to subsection (9) the trustees of the Existing Scheme shall, as soon as practicable thereafter, determine the amount to be transferred to the New Scheme concerned pursuant to subsection (13), acting on the advice of the actuary of the Existing Scheme.

(12) The amount determined pursuant to subsection (11) shall be an amount bearing the same proportion to the assets of the Existing Scheme as the liabilities under the Existing Scheme in respect of the members who by virtue of subsections (5) and (7) become members of the New Scheme concerned bear to the total liabilities under the Existing Scheme.

(13) Subject to subsection (14), as soon as practicable after the determination of the amount to be transferred to the New Scheme concerned pursuant to subsection (11), or as the case may be pursuant to subsection (14), such amount shall be transferred by the trustees of the Existing Scheme to the fund of the New Scheme concerned established pursuant to subsection (10).

(14) Where a dispute arises between any of the following categories:

(a) the trustees of the Existing Scheme;

(b) the Company;

(c) any other company participating in the Existing Scheme;

(d) the trustees of the New Scheme concerned,

as to the amount to be transferred to the New Scheme concerned, or as to the manner in which it has been calculated, or the liability of Aer Lingus under subsection (12), the matter may be referred to a person who shall be nominated by the parties to the dispute or if they are unable to agree as to the person to be nominated for that purpose, to a person nominated for that purpose by the President for the time being of the Society of Actuaries in Ireland, following a request in writing to him or her by any one or more of the parties in dispute and a determination on the matter or matters in dispute by the person so nominated shall be binding and final.

(15) Notwithstanding anything contained in any deed of trust or rules relating to the Existing Scheme, the provisions of this Act shall take effect and any such deed or rules shall be construed accordingly.

(16) For the purposes of this section, where a person is in receipt of payment of benefits to which he or she is entitled by virtue of a person's membership of the Existing Scheme (in this subsection referred to as a “dependant”) a reference to a “member” shall be construed as including a reference to such a dependant.

(17) In this section—

“Aer Lingus” means the Company and as the case may be a subsidiary of the Company or an associated company;

“associated company” means a company of which not less than 20 per cent of the issued share capital is owned by the Company or a subsidiary of the Company;

“establishment date” means the date on which a New Scheme is established pursuant to subsection (1);

“Existing Scheme” means the Irish Airlines (General Employees) Superannuation Scheme;

“New Scheme” means a superannuation scheme established pursuant to subsection (1);

“transfer date” means the date on which the trustees of a New Scheme receive payment of the amount referred to in subsection (13).