Bank of Ireland to inject €400m into pension fund after deal to cut benefits

Bank of Ireland said its pension deficit will narrow by an initial €400m under a plan to cut employee retirement benefits, in an accord that eases the way for the nation’s largest lender to repay part of its state bailout.

The deal, supported by the bank’s biggest union, centres on how future pay increases are treated for pension purposes, the bank said yesterday.

Should workers back the changes, the bank will then inject an additional €400m into the pension plan over time, according to sources.