40% of defined benefit schemes to remain unchanged

A study carried out by Mercer Human Resource Consulting reveals that 40% of defined benefit scheme sponsors have indicated that they do not intend to change their defined benefit scheme.

A defined benefit pension scheme is an arrangement where the benefits payable to members are clearly specified, usually as a percentage of salary at or near retirement.

But the study also found 30% of sponsors have made benefit changes over the past couple of years and a further 30% intend to review in the near future.

Around 480,000 employees are members of defined benefit pension schemes in Ireland.