Pensions Board agrees greater flexibility

Greater flexibility for pension schemes which find themselves in difficulties due to prolonged falls in equity markets have been approved by the Irish Pensions Board.

It now has discretion to extend beyond three and a half years, the period in which pension schemes are required to make good any shortfall in their assets.

The Board indicated that while its policy is to only consider extensions for periods up to 10 years it may now consider applications for longer extensions in exceptional circumstances.

Any extensions are confined to schemes whose funding difficulties relate wholly or mainly to investment market falls.

IAPF Chairman, Gerry Ryan said today: "It is clear that extensions will only be granted where a strong case can be made that any such extension is necessary or appropriate and not contrary to the interests of members.

"In broad terms the new guidelines issued by the Pensions Board take account of the funding difficulties which the IAPF had highlighted and provides an opportunity for the Board to separately consider the nature of the funding standard itself," Ryan added.