Pension plans 'under-funded by €5bn'

DEFINED benefit pension plans are under-funded by a massive €5 billion, a top pensions expert warned yesterday.

Tom Murphy of Mercer Human Resource Consulting said half of the €60bn sunk into employee pension plans are under-funded.

If the figure is between 15% and 20% for those funds then the shortfall down the line is a massive €5bn, he said.