Tax breaks ‘needed to protect pensions’

PENSION schemes that guarantee a percentage of final salary will die out unless employers are given tax breaks to keep them in place, a leading pensions consultancy said yesterday.

International human resources advisers Mercer called on new Finance Minister Brian Cowen to use December’s Budget to make defined benefit pension schemes more attractive for employers.

Mercer said employers should be allowed offset their contributions towards employee pensions against their PRSI bill.