Defined benefit schemes in decline

Irish defined benefit pension schemes have become increasingly insolvent, with the deficit hitting €10bn, according to a Lane Clark & Peacock Ireland survey.

The latest survey by the company into the largest defined benefit pension schemes found that deficits rose by €4bn in the 12 months to September.

The report also found that the difficulties posed by the challenging economic climate, changes to domestic legislation in Ireland and international accounting rules will force the closure of many defined benefit pension schemes here.