AIB and BOI's combined pension deficits of €2.7 billion

From Sunday Buiness Post…

First time in a long time I haven’t taken exception to a Davy’s comment. I’d expect such proposals, if enacted, would be eased in.

Sure they should just fix the pension deficit themselves i.e increase contributions, reduce benefits or some mix of both? If not why are the management of BOI there at all if the taxpayer is just going to pay up any and all bills they generate?

But sure why not, we are payin for everything else, may as well pay for that too. :unamused: F*** me pink!

It may be that pension deficits are due to bad luck. I am also not sure what proportion of the overall fund the deficit represents or how long it would take the company to make this up.

Generally speaking however, I think that where large pension deficits arise there should be an independent investigation as to whether a company knowingly made insufficient pension contributions to defined benefit pension scheme without the consent of employees.

If it is determined that a company did knowingly make insufficient contributions to a fund then there should be an indepth investigation whether this amounted to a fraud on employees and if so whether officers of the company were involved in and may be personally and criminally liable for such fraud.

As unfair as it is, I think that any obligation of the banks to employees which the banks are not solvent enough to meet should be defaulted upon. It is enough to pay the depositors up to a certain amount and bondholders and other people whom we theoretically should not have to pay.

Pension obligations, indemnity obligations etc should be defaulted upon. Ideally we would replace the debts due to these people with shares in the new bank and the existing shareholders would get wiped out.

Wonder what they invested the pension funds in…oh wait, dont tell me, not bank shares?

The last paragraph of the article would agree with you :wink:

It’s still a large deficit per full-time employee and will take years to balance out. It’s reasonable that these imbalances are taken more seriously - deducting it from capital would certainly do this.

More on Basle III here:

It looks like both companies are reviewing arrangements but its a huge hole to fill. It seems the deficits are expected to be made up by increasing employee contributions.

According to this BOI has a €1.5bn hole with just €3bn of assets.

AIB staff told that they will be paying additional 5% some haven’t paid a contribution up to now. Went done resonably well I understand

The problem is that the young workers will be paying more for years to come so that current pensioners and those near retirement can get their full benefits. I wonder what age the people in the banks trusted with making these decisions are?

I’ve got 7.5 years contributions left at one of these two firms after leaving them in 2008. Should I get a buy-out bond and transfer it to someone else…?