State’s pension boost not enough, say unions

THE Government last night confirmed a new Pension Insolvency Payment Scheme (PIPS), which will make defined benefit pension schemes up to 20% more valuable, following the collapse of pension schemes in some major employers and the threat to many more.

However, unions, who are demanding a state-backed pension protection scheme in the ongoing talks on a new national recovery plan, said the Government’s proposals did not nearly go far enough.

Announcing PIPS, the Department of Social and Family Affairs said it would “assist employees and former employees of companies where the employer becomes insolvent and the defined benefit pension fund is in deficit”.