Pension proposal could be ‘win-win’

A BUDGET provision that will allow cash-starved pension schemes to purchase annuities invested in Irish government bonds could be a ‘win-win’ situation for both scheme members and the state’s finances.

The move will provide relief for defined benefit pension funds in particular, as it will allow them to lower their deficits by being able to set aside less money to cover liabilities.

More than 75% of the country’s defined benefit pension schemes are in deficit to the tune of an estimated €13 billion.