NTMA to issue new bonds for pension funds

THE National Treasury Management Agency is set to start issuing new Government bonds specifically aimed at Irish-managed pension funds, before the end of this month.

The sovereign annuity bonds follow on from the passing of the Sovereign Annuities Initiative legislation before Christmas — a policy first proposed by the Irish Association of Pension Funds and the Society of Actuaries in Ireland and backed by the Department of Social Protection.

The move enables Irish pension funds to invest more in Irish Government bonds. It also allows for the retention of Irish funds for investment in Ireland and will see pension schemes benefit from higher yields than are currently available to them.