IRELAND - Competition has become stronger in the financial services private pension scheme sector, according to pensions ombudsman Paul Kenny.
Kenny said the reason financial services companies had been reviewing their pension activity followed recommendations last week by the Labour Relations Commission (LRC) that the AIB Bank should re-open its defined benefit (DB) scheme so employees could have a sufficient pension of around two-thirds of their final salary.
Kenny said: “This has been an ongoing controversy since autumn but if the recommendations are put in place it will put pressure on the AIB bank to provide the provision for its employees.”
Kenny explained that similar models had already been implemented and were becoming common.
In the case of AXA and Irish Life and Permanent, they use capped DB schemes topped up with DC style contributions.
However these companies employ lower caps of around €45,000 than those proposed for AIB.
Kenny said: “Eventually you will be forced into investment decisions because you have ageing members, you can get the worse of both worlds as you have the expense and regulation of DB schemes as well as the complication of running a DC scheme alongside it.”
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.