Call for ‘creative solutions’ to pension funding

A LEADING pensions expert has called for a radically new approach to pension funding to deal with crisis.

“Irish defined benefit (DB) pension schemes are now at a tipping point and urgent action is needed to throw a lifeline to schemes,” said Michael Walsh, head of retirement practice at Mercer.

The low yield on German bonds is the latest crisis to hit the DB segment of the market while the cost of funding schemes has doubled in the past 10 years, piling huge pressure on Irish pension schemes, he said.