NIB staff get early retirement proposals

National Irish Bank is offering generous terms to employees who wish to take early retirement. The general secretary of the Irish Bank Officials' Association (IBOA), Mr Ciaran Ryan, has said he expects the offer to be over-subscribed.

Under the terms, employees aged 50 years and over will receive 2 1/2 weeks salary per year of service and go straight onto pension. Employees under 50 years of age are being offered six weeks pay per year of service, with their pension deferred until normal retirement age.

A spokeswoman for National Irish Bank (NIB) questioned the accuracy of the figures but reliable sources said they were correct.

The bank pension scheme pays one-sixtieth of the final salary for every year of service up to a maximum of forty-sixtieths. So a manager aged 50 and earning £40,000 a year, who had 30 years service, would receive a lump sum of £57,690, and immediately receive a pension equal to thirty-sixtieths of £40,000, or £20,000 a year. When employees at the troubled bank were advised of the terms recently, a number immediately contacted personnel to say they wished to take advantage of the scheme. However, the date for applications has not yet been set and the number of jobs which are to be shed has not yet been decided. National Australia Bank, which owns NIB, recently announced a worldwide restructuring programme for the group. Meanwhile, NIB has told former and serving managers and other executives with the bank they may engage personal legal advisers for their dealings with the two Government-appointed inspectors carrying out an inquiry into NIB.

The executives have also received letters from the inspectors asking them if they have information or documentation relevant to their inquiry. The inspectors are inquiring into interest and fee loading by the bank and any assistance the bank may have given towards the evasion of tax.

The bank has confirmed that legal correspondence has been received from a number of customers who had invested in the Clerical Medical International investments bonds, which were distributed by the bank. It is understood the customers are concerned about the fact that confidential details of their affairs were taken from the bank and handed over to the Revenue Commissioners.

The investigation by the Garda Bureau of Fraud Investigation into allegations against banks is continuing.

Chief Supt Frank Glacken said they now have more than 400 complaints. Of these, 40 per cent have been fully investigated and no offence disclosed.