Amicus in pension deal with IL&P

eedwards@irish-times.com

The Amicus trade union has reached agreement with Irish Life and Permanent TSB on a pension scheme, the union said today.

Amicus said although the full details have yet to be put to its members, the existing defined-benefit pension scheme would be retained for existing members, with a new "hybrid" defined benefit scheme for new entrants after January 1st.

There will be a cap on the value of the benefits it will guarantee, and a "top-up" funded by a defined contribution scheme into which the employer will pay an agreed percentage, Amicus said.

In the past three months, Amicus has successfully negotiated pension agreements with EBS Building Society, Allianz and Royal and Sun Alliance.

The union has 2,000 members at Irish Life and Permanent TSB and claims to be the largest single union at the bank.

ATGWU, Mandate and Siptu were also part of today's negotiations.

"This is another example of a real solution to the pension issue which satisfies both employers and employees", said Amicus national secretary Jerry Shanahan.

"The Bank of Ireland said there was no alternative. They are wrong, and we would urge them to open their minds and think again ahead of our Labour Court hearing on December 15th. There is no doubt their employees are doing so already."

Bank of Ireland is also in dispute with unions over plans to close its defined-benefit scheme. Many employers are examining similar options as defined-benefit schemes are costly to provide.

Instead, they propose replacing their generous retirement schemes with defined contribution pensions, where the ultimate pension paid to an employee would depend entirely on the monies paid in and on the value of the fund on the retirement date.