IBEC has initiated a new pensions arrangement, allowing small and medium-sized companies to obtain cover at reasonable rates. The umbrella pension arrangement is aimed at companies which would otherwise not afford a pension scheme as the costs involved can often be prohibitive.

Companies joining the umbrella fund will have a choice of investment managers including Ulster Bank, Bank of Ireland and Irish Life. The fund promises minimal amounts of medical underwriting for life assurance, disability and serious illness benefits.

The scheme will also offer streamlined administration processes and access to Irish Pensions Trust to provide consultancy.

IBEC said it hoped the scheme would go some way to improving the 50 per cent coverage occupational schemes now enjoy.