Bank of Ireland (B of I) has accepted proposals for a pensions deal for incoming workers.
The proposals were recommended by the Labour Relations Commission (LRC) and endorsed by the Labour Court following a protracted dispute with unions over the terms of the package.
The new "hybrid" scheme is a mixture of defined-benefit and defined-contribution (where staff contributions to pension plans are fixed). It replaces a defined-benefit pension plan for existing workers where a final payout was guaranteed.
Under the scheme, workers will contribute 2.5 per cent of salary to a Retirement Capital Account and will have the option of contributing up to 3 per cent of salary to a Personal Investment Account (PIA), which the bank will match with up to 3 per cent of salary.
Entry-level staff who opt to contribute to PIA, will also receive an additional contribution of 2 per cent of salary in the first year of employment, 2 per cent in the second and 1 per cent in the third year to their PIA.