The Labour Court recommended further engagement between Bank of Ireland and the Irish Bank Officials’ Association on pension arrangements for new staff, after finding the bank had not fully used agreed procedures before introducing changes. The recommendation was signed on 23 January 2007.
Bank of Ireland said rising pension liabilities, low bond yields, longer life expectancy and accounting rules drove its changes. The union objected that the new scheme shifted financial risk to employees and did not guarantee the outcome provided by the established scheme.
The Court recommended an intensive process to address the structure and funding of pension schemes and assurances about the value of pensions at retirement, with professional experts and the Labour Relations Commission assisting. While that process continued, staff recruited since 1 October 2006 who met the established scheme’s rules and requested it should be given a one-time option to join that scheme.