Aer Lingus and DAA pensioners sue State over new laws

More than 600 Aer Lingus and Dublin Airport Authority pensioners have sued the State alleging new laws have led to their pension entitlements being cut by about €1 million annually following a restructuring of their pension scheme.

A test case involving four pensioners from the Irish Airlines General Employees Superannuation Scheme is set to go ahead at the High Court later this year.

Constitutional point

The case came before the Commercial Court yesterday when Mr Justice Brian McGovern refused to transfer it to the fast track court, with the effect it will proceed through the ordinary High Court list. The case raised a constitutional point and was not appropriate for the Commercial Court, the judge said.

In their test action, Cornelius Clarke, Patrick Fagan, Kay Garvey and Hugh O'Brien claim they will lose €25,000 per year as a result of the reductions in pension benefits.

The challenge arises from the restructuring of the defined benefit Irish Airlines Superannuation Scheme (IAS).

The pensioners argue the legislation under which, it is claimed, the pension reduction was effected is invalid and incompatible with the European Convention of Human Rights.

Seeking damages

They are also seeking damages for alleged breach of constitutional rights and alleged wrongful interference with their economic interests.

In an affidavit, Cornelius Clarke, Maywood Park, Raheny, Dublin said a funding proposal that included provision for reducing pension benefits was submitted to the Pensions Authority in December 2014 and approved.

Mr Clarke said the consent of the members of the IAS scheme to the reductions in pensions was never sought.

This unilateral imposition of a reduction was made in reliance of a section of the State Airports (Shannon Group) Act, Mr Clarke said.

The pensioners argued that provision should be declared invalid.