Pension crisis as Irish Life scraps gold-plated fund
The largest pension provider in the State is closing its staff pension scheme, prompting fears that traditional defined benefit plans are now set to disappear from the private sector.
Unions at Irish Life want the law altered urgently in a bid to stop the company closing its defined benefit pension for staff.
Some 1,200 staff members will be hit by the move.
It comes despite the Irish Life scheme having a €150m surplus.
It is unusual for a private sector defined benefit scheme to be in surplus.
The Irish Life scheme has 2,200 pensioners and former employees yet to reach retirement age, or deferred members.
The scheme provides a pension of two-thirds of employees’ salary at retirement at age 65, for those with 40 years’ service.
A briefing document, compiled by the Unite trade union, states: “The scheme has assets of €1bn, comfortably meets the minimum funding standard, and had a surplus of €150m at the last actuarial valuation.”
Full Content: Independent
Remember to subscribe to our free weekly newsletter for more news or subscribe to our service to get unlimited access.
