Dáil Éireann Debate, Tuesday - 24 June 2014
142. Deputy Michael McGrath asked the Minister for Finance the current status of the AIB defined benefit pension scheme; his plans to deal with the deficit in the scheme; and if he will make a statement on the matter. [26843/14]
View answerAs the Deputy will be aware all defined benefit schemes in AIB closed to future accrual on 31st December 2013 and all AIB staff now receive defined contribution pension benefits for future service. This applies to AIB Ireland, AIB UK, EBS and any other AIB staff in other jurisdictions. The closure of the defined benefit pension schemes resulted in a one off curtailment gain of in excess of €200m to the bank.
I have been informed that funding plans have been agreed with each defined benefit scheme and the schemes are in the process of de-risking their investment strategies. The Pension Scheme deficit has declined from €0.8 billion at June 2013 to circa €0.1 billion at December 2013. This is due to a number of factors including changes to the discount rate, an increase in the value of market assets and the curtailment gain on closure.
Further details in respect of AIB's pension schemes can be found in the AIB Annual Report which is available at www.aibgroup.com/investorrelations. An update on the performance of the schemes will be provided as part of AIB's half year results announcement scheduled for 30 July 2014.
