Defined benefit fund rules could cost Irish firms €3bn

The funding requirements for defined benefit pension schemes introduced by the Pensions Board in June could cost Irish companies a further €3bn, said Maurice Whyms, director of insurance firm Willis Ireland.

The board brought in legislation requiring companies running defined benefit schemes to take an actuarial assessment of the fund at the end of each year and provide a timetable for when any hole will be plugged.

At a conference in Dublin yesterday, Mr Whyms said: “In view of the complexities involved in dealing with deficits, the proposed time frame for the completion of funding proposals appears particularly onerous.”