Dáil Éireann Debate, Wednesday - 11 December 2013
46. Deputy Michael McGrath asked the Minister for Finance the current status of the AIB defined benefit pension scheme; the annual cost savings associated with changing the scheme from defined benefit to defined contribution; the number of staff impacted by the change; and if he will make a statement on the matter. [53326/13]
View answerI have been informed that the AIB Defined Benefit Pension Scheme will close to future accrual as planned on 31st December 2013 in line with the recommendation of the Labour Court. Relevant details in respect of the closure of AIB's Defined Benefit schemes will be reflected in AIB's 2013 Annual Financial Report which is likely to be available in Q1 2014. This change affects c. 11,000 AIB staff based in the Republic of Ireland and the UK who were members of the AIB Defined Benefit Pension Schemes. AIB staff will accrue future pension benefits on a defined contribution basis from 1st January 2014. The individual effect on each staff member will depend on their previous benefit structure and period to retirement.
As the Deputy will be aware AIB has previously announced that it intends to make cost savings of c€350m by the end of 2014 and the closure of the pension scheme forms a significant proportion of this proposed saving.
