Bid to ease pressure on DB pensions

The Government has introduced a number of measures aimed at helping under-pressure defined benefit pension schemes meet their funding proposals.

Among these will be a widening in the type of assets that can be used to reduce the reserving requirements of the funding standard; a reduction in the level of the risk reserve from 15% to 10% and various changes to reflect recent changes in sovereign bond yields.

Speaking yesterday, Social Protection Minister, Joan Burton said that her department is also delaying the introduction of proposed changes to the calculation of transfer values — which would have had the effect of increasing schemes’ liabilities.