Labour Court recommends Pfizer pension transition payments of up to €25,000

The Labour Court recommended a choice of pension arrangements and lump-sum payments after Pfizer Ireland proposed closing its defined-benefit schemes to future accrual. The recommendation, dated 26 March 2018, followed a dispute with the Services Industrial Professional Technical Union and the Technical, Engineering and Electrical Union. The unions opposed changes to the existing scheme, saying it was part of members’ terms and conditions. Pfizer Ireland said the move was decided globally to address the costs and financial risks of defined-benefit plans. The Court recommended maintaining the link between accrued benefits and final pensionable pay, with members choosing between an early move to a defined-contribution scheme or remaining in the existing scheme for additional years. It also recommended an initial €10,000 lump sum, plus €1,700 for each year of Pfizer service, capped at €25,000. These are recommended scheme terms, not compensation awarded to individuals.