Department changes could force the cost of pension provision up by 60%

THE cost of pension provision could rise by 60% if some of the proposals set out in the Department of Social Protection’s consultation document are adopted.

Michael Walsh, leader of Mercer’s Retirement, Risk and Finance Business in Ireland, told a seminar for pension scheme trustees and employers that “the two main options under consideration would increase liabilities on average by 10% and 50% respectively”.

He warned that the changes envisaged would hasten the demise of defined benefit pension plans because of the impossible burdens they would place on employers and workers.