IBEC calls for review of pension scheme funding requirements

Business lobby group IBEC has called for an urgent review of Irish pension rules, claiming that many defined-benefit pension schemes risk closure because they cannot meet the minimum state requirements.

The group said that, "given the extremely volatile market conditions", the Government should reduce the minimum funding standard to give companies the necessary flexibility to make the best long-term investment decisions.

IBEC director Brendan McGinty said: "Many private sector defined benefit pension schemes are facing a November deadline from the Pensions Board to submit proposals on how they plan to address scheme deficits.

"However, companies are concerned that they are being forced to make investment decisions that will meet the draconian minimum funding standard in the short-term, but will negatively impact the long-term viability of these schemes."