THE LICENSED Vintners Association’s pension scheme for bar staff is being wound up.

A spokesman for the association, which represents Dublin publicans and bar workers, said the decision had been taken by the trustees of the scheme and was based on “extensive actuarial and legal advice”.

There are about 480 active members of the scheme, who are currently employed and contributing to the scheme, and 320 retired bar staff. In addition, some 2,000 bar staff who contributed to the scheme at some point have deferred rights.

The LVA said the pension benefits currently being paid to 320 retired bar staff would not be affected. Those who were already in receipt of the defined benefit scheme were protected by law.

The defined benefits scheme, which dates back to the 1970s, will be replaced by a new scheme, called the LVA New Ireland PRSA Scheme.

Two representatives from the union Mandate and two representatives from the LVA constitute the board of trustees.

A spokesman for the trustees said they had received “unequivocal advice” that, if they failed to wind up the scheme now, they would risk significantly worsening the position of active and deferred members, as any deterioration in the financial position of the scheme from November 3th would have meant a reduced transfer value for active and deferred members compared to what they would now receive.

That “transfer value” which will be paid to active and deferred members will be determined in early 2011.

The spokesman for the trustees said the decision was taken “with great regret”.

“Unfortunately, as is the case with about 80 per cent of defined benefit schemes in the State, liabilities in the scheme have grown dramatically due to circumstances outside of the control of the trustees.

“Factors include falling annuity rates, increased life expectancy and the collapsing investment markets.”

Mandate and the LVA said they were strongly recommending that employers maintain the current level of contributions, which sees employers contributing two-thirds and employees one-third, to the new PRSA scheme.