IBEC urges Government to protect pensions
EMPLOYERS' body IBEC has urged the Government to reinforce the law to protect employee's pensions. There are fears that a large number of the almost 1,000 defined-benefit company schemes will close because most of them are in arrears.
Schemes that are wound up have to prioritise putting money aside to provide for those already receiving a pension.
IBEC director Brendan McGinty told the IBEC conference on pensions that this could mean that, in schemes with large deficits that are wound up, there will be nothing left for those still in work.
Mr McGinty called for a change in the rules that see existing pensioners in company schemes getting priority over all the money in a scheme when it is wound down.