IBEC calls for changes to defined benefit schemes

IBEC calls for changes to defined benefit schemes

IBEC is warning that a significant number of defined benefit pension schemes will collapse unless changes are made to the funding rules.

The employers group says almost two thirds of companies have closed their pension schemes to new entrants because of the rising costs associated with them.

Just under half said their schemes did not comply with the minimum funding set out by the Pensions Board and a quarter of them are considering the introduction of career-averaging, where pensions are paid on an average of career earnings.

Industrial relations director with IBEC Brendan McGinty called on the Government to change the rules for employers as defined benefit schemes were "increasingly being seen as a bottomless pit".

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