Aviva Ireland to close defined benefit pension plan for staff

Aviva's Irish unit will close its defined benefit pension plan, where benefits are linked to employees' final salary, next month after staff members of the UNITE union voted in favour of the move.

The insurer's defined benefit scheme "will close to future accrual on April 30th, with all staff transitioning to the new defined contribution arrangements May 1st," a spokeswoman for Aviva Ireland said.

The plan had a £371 million ( €435 million) deficit on December 31st, its London-based company said in its annual report.

Some 93 per cent UNITE members voted to close the plan and transfer employees to the company's defined contribution plan, the spokeswoman said.

Aviva Ireland is the last wholly-owned subsidiary of the UK insurer to close its defined benefit scheme.