ICTU: Govt pension plans don’t go far enough

The head of the trade union movement has said the Government's scheme to support defined-benefit pension schemes at companies that go bust does not go far enough.

Under the scheme, pension funds will pay a sum to the Exchequer to cover the cost of payments to retired members, instead of buying annuities.

The savings that accrue from using the Exchequer scheme will be put towards the pensions of existing workers, thereby helping to reduce shortfalls in pension funds.

An estimated 90% of defined-benefit schemes in the private sector are believed to be current running a deficit.

The total shortfall could be up to €30bn.

However, ICTU general secretary David Begg says the Government's proposals are flawed and a protection fund is needed to safeguard pension schemes that are already insolvent.


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