Radical plan to slash generous public sector pension benefit

Ireland“All new entrants to the public sector face the prospect of losing the traditionally generous defined benefit pension under a radical plan being considered by the government that would save the exchequer billions of euro in pension contributions. The plan, which would see new recruits being shifted to less generous defined contribution pension schemes commonplace in the private sector, would prove controversial with the public sector unions. They regard defined contribution pensions as ‘yellow pack’, because the final pension is dependent on investment returns, compared to defined benefit arrangements, where the employer, in this case the government, takes all the risk. The plans do not seek to alter in any way the pension entitlements of current workers or those already retired …” (more)

[Emmet Oliver and Shane Coleman, Tribune, 29 March]

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