Labour Court recommends changes to Maxol pension scheme wind-up

The Labour Court recommended changes to Maxol Ltd’s plans to wind up its defined benefit pension scheme, which had a shortfall of €8.7 million. The recommendation, signed on 1 July 2010, called for higher lump sum offers for members and minimum employer and employee contribution rates for existing staff. The Court said continued operation of the scheme was not viable and saw no realistic alternative to winding it up. It recommended that the company increase its lump sum offer by a further 5% for members over 50 and 2% for those under 50, and provide funding of at least 10% from the employer and 5% from employees for existing staff. It also recommended a voluntary redundancy or early retirement package for employees aged 54 and over on the recommendation date, with the parties to discuss terms by 31 July 2010. The Services Industrial Professional Technical Union had sought a fair solution to the scheme deficit, while Maxol said the scheme was no longer sustainable.