IRELAND - The number of firms offering defined benefit (DB) pension schemes has significantly decreased from 67% to 37%, according to the Irish Association of Pension Funds (IAPF).
The results of a new study conducted on behalf of the IAPF by UCD Michael Smurfit School of Business was revealed at the IAPF Annual Conference in Dublin Castle today.
The report found that 39% of firms which provide DB schemes have closed them to new members. This is up from 12% five years ago, when the survey was last carried out.
Patrick Burke, chairman of the IAPF said: “The findings emphasise that the responsibility and risk of securing an adequate income in retirement is increasingly moving to employees, but our study suggests that many are not fully aware of the extent of this major change in the pensions’ landscape or, at an individual level, of its implications for them personally."
Burke said the number of firms offering defined contribution (DC) only schemes had tripled from 8% to 24% and noted a concern among many companies providing pensions was that employees were not taking sufficient interest in their scheme.
Burke said about 50% of pension holders in the private sector were now members of DC schemes.
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