Aer Lingus 2008 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2008 Aer Lingus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

AER LINGUS GROUP PLC - ANNUAL REPORT 2008
82
24 Pensions and other post employment benefits
The Group operates a number of externally funded pension schemes for the majority of its employees. The Irish Pension
Schemes meet the definition of defined benefit schemes under the terms of the Pensions Act 1990. One of the Irish Pension
Schemes, the Irish Airline (General Employees) Superannuation Scheme (the “Main Scheme”) is operated in conjunction with a
number of other employers.
The Group and employees contribute a fixed percentage of salaries each year to these schemes, which does not vary according
to the funded level of the Irish Pension Schemes.
The rules of the Irish Pension Schemes provide for the following in the event that there is an actuarial surplus or deficiency in
the schemes:
Surplus
If an actuarial valuation discloses a surplus, it shall be applied by the trustees, after consultation with the Actuary, for the
purpose of increasing the benefits to members or reducing the rate of contribution by the employers and/or members.
Deficiency
If an actuarial valuation discloses a deficiency, the trustees shall take such measures as they think appropriate, having regard to
the recommendations of the Actuary, to remedy any such actual or anticipated deficiency provided that no such measures shall,
without the consent of the employers, make provision for payment of any increased contribution by the employers, or, without
the consent of the members make provision for the payment of any increased contribution by the members.
The cost and liabilities of the schemes are assessed in accordance with the advice of a professionally qualified actuary. The
most recent actuarial review was carried out at 31 March 2009.
As the Company contribution rate is entirely independent of the Irish Pension Schemes’ funding level, the value of the Irish
Pension Schemes’ assets and liabilities are not relevant in the context of reporting under IAS 19 Employee Benefits.
The Group’s contributions charged for the year were €29.3m (2007: €23.5m), based on rates specified by the scheme rules.
The actuarial reports are not available for public inspection.
At the time of the IPO, the Group reached agreement with the trade unions representing the majority of staff to establish two
supplemental funds. The purpose of the supplemental funds is to seek to provide, insofar as available funds permit and subject
to their trustees’ discretion, increases to pensions in payment for those members of the Main Scheme who are also participants
in the supplemental funds where the trustees of the Main Scheme do not grant increases to pensions in payment in line with
rises in the Consumer Price Index.
In 2007, the Group made a once off contribution of €104.0m from the IPO proceeds to these funds. The Group and current
eligible employees who have opted to become members of the funds also pay ongoing annual contributions. As is the case
with the Main Scheme, the two supplemental funds were established on the basis that neither the Group nor a participating
employee can be obliged to pay more than the specified contribution to the funds without their written consent.
25 Financial commitments
(a) Capital commitments
At 31 December the Group had capital commitments as follows:
2008
€’000
2007
€’000
Contracted for but not provided
- Aircraft and equipment 1,070,761 122
- Other 2,162 3,625
1,072,923 3,747
Authorised but not contracted for 74,807 14,316
1,147,730 18,063
Notes to the Consolidated Financial Statements
continued