IBRC has only large defined-benefit scheme to be fully funded this year

THE IRISH Bank Resolution Corporation was the only company to have reported a fully funded pension scheme this year, compared to three companies last year, according to new research

Deficits in Ireland’s biggest defined-benefit pension schemes rose by €4 billion in the 12 months to September, according to research carried out by international actuarial consultancy firm Lane, Clark and Peacock Ireland.

Difficulties posed by the challenging economic climate, changes to domestic legislation and international accounting rules will force the closure of many defined-benefit pension schemes, according to the actuarial consultants, which found pension schemes were already starting to withdraw from the equity markets.

The 2011 survey shows an average equity asset allocation across companies analysed of 52 per cent, down from 58 per cent in 2010.

“We believe that a significant number of these schemes will wind up in the next 18 months. In the absence of innovative measures from Government and steps to extend working lifetimes, the current trend to provide lower value defined contribution-type pension arrangements will continue,” LCP partner Conor Daly said.

IBRC is the only company to have consistently reported a fully funded defined-benefit pension scheme since LCP began reporting on this survey in 2009.