Pension deficits double to €8.5bn

Deficits in the Defined Benefit (DB) schemes of the largest Irish private and public sector bodies more than doubled between January and August of this year as the pension levy and falling bond yields took their toll.

The combined deficits of 16 of the largest Irish-quoted companies and 13 state or semi-state companies’ schemes grew from €4bn in December 2013 to more than €8.5bn at the end of August, according to an analysis published yesterday by consultants LCP Ireland.

The report finds that falling bond yields coupled with the government pension levy have driven the rapid increases in deficit levels and wiped out any benefit derived from a gain of more than 12% in global equity markets.