Pension deficits drop to €5.3bn

DEFICITS at the country’s biggest defined benefit pension schemes in the public and private sector fell from €13.3 billion in September 2010 to €5.3bn at the end of March.

Figures released yesterday by Attain Consulting show that the total accounting deficit of defined benefit pension schemes of Irish- based plcs quoted on the Irish Stock Exchange and the 11 largest semi-state companies with funded pension schemes, has decreased from an estimated €6.4bn in December to €5.3bn in first three months ended March 31, 2011.

The Attain Pension Accounting Index by the company Attain estimates that during the quarter, assets decreased by approximately 1% but the value of the companies’ liabilities fell by an even greater amount due to favourable movements in bond yields.