Are taxpayers subsidising Bank of ireland pension?

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BoI staff face vote on deal to tackle pensions deficit - Irish, Business - Independent.ie
Its nice to see that the loss-making BOI increased salaries by 3.5% and that staff pay 2.5% contribution to pension but is it asking a bit much of taxpayers (public servants included) to pay in an additional €750million to keep staff contibutions so low.
The taxpayer has pumped in billions already but this seems a bit rich to reward so many who got bonus payments for pushing insane loans to our developer class.
I'm sure good ol Dan McLoughlin must be pleased.
 


bormotello

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Because nobody wanted participate in bunk run and see NAMA banks dead, it means that most of people think that BoI staff deserves their gold plated pensions and recent pay increases
If people would start to move their savings into PTSB and Ulster bank, then BoI staff would think twice before asking for pay increase and forcing taxpayer to subsidize their pensions
 

OCicero

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It is also interesting to note that, unlike the public service pay proposals, neither the €750m cash injection into the pension fund nor the low pension contributions appear to have an attached "escape clause" in the event of adverse financial circumstances.
 
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Larry Broderick, The pot 'is truly calling the kettle black' today!

Taxpayers are indirectly subsidising the loss-making BOI pesnion fund to the tune of €750 million.
Meanwhile the poor souls from the Irish Bank Officials Association contribute only 2.5% of their salary to their generous defined benefit pension scheme. It looks like they bought too many of their own shares!! But they want the taxpayer to subsidise them.
Some cheek from Broderick to be ranting about Richie Boucher.
 

powderfinger

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Does the Bank of Ireland pension fund (Salix Trust) operate a separate DB scheme for Directors and Senior Executives ?
 
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Harmonica

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Taxpayers are indirectly subsidising the loss-making BOI pesnion fund to the tune of €750 million.
Meanwhile the poor souls from the Irish Bank Officials Association contribute only 2.5% of their salary to their generous defined benefit pension scheme.
Insanity. Article above says the banks are paying 15% of employee salary into the pot. They need to wake to the new reality that their business is insolvent.

The new government has to stop the 750m payment. I really blame the last government as they have let this go on for years.
 
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We have now reached the stage where we are closing hospitals while funding Defined benefit pensions for older bank staff.

Should the state directly or indirectly, continue to have any role
in funding shortfall in insolvent
BOI (and AIB) defined benefit pension schemes?

Bank staff who have taken no pay cuts (actually recieved pay rise in 2008) who contribute only 2.5-5% of their salary ( and receive tax relief on this paltry amount) who receive 15% contribution from bank (taxpayer) who have
very generously also promised to inject €750 million over five years.

Is it legitimate to use taxpayers money in this way to subsidise relatively well off individuals who make little or no realistic contribution to their pensions.

Have the IMF anything to say on this given that, according to Ruairi Quinn, they demand a reduction in the money spent on Special needs assistants?
 

Samell

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Whatever happened to the financial regulators spiel of "investments may fall as well as rise" or does it not happen to bankers? It is their fellow employees that invested poorly so why should everybody else pay these DB pensions valued on paper not worth using in the jacks.
 

Harmonica

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Employer contributing 6 times the employees contribution is crazy especially as it is defined benefit which means employer will likely have to subsidise again in later years. That is bordering on the terms politicians get which is syaing something. This is 100% subsidised by tax payers as they company would have folder without state support. Bankrupt companies don't usually pay good pensions.

:(
 

Expatriot

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Whats new in this?

A state run by people that put the interests of thing others than the state first could be no other way.

This state will fund pay rises and pensions of those it values and needs, that has clearly been shown to be well connected parts of the financial sector. Even in public ownership no unpleasantness will be meated to those that control bank accounts, loans and confidential financial info on the decision makers.
If you are on the lower rungs and hold no power over these peoples finances start working on your CV, if not enjoy the best job in the country.
 
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Employer contributing 6 times the employees contribution is crazy especially as it is defined benefit which means employer will likely have to subsidise again in later years. That is bordering on the terms politicians get which is syaing something. This is 100% subsidised by tax payers as they company would have folder without state support. Bankrupt companies don't usually pay good pensions.

:(
But in Ireland a bankrupt company (BOI) can find €800 million to inject into its pension scheme according to the attached.
In other words the taxpayer.
Why are taxpayers so happy to fund this gravy train?

Bank of Ireland staff agree on changes to pension fund
 
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http://www.google.ie/url?sa=t&source=web&cd=24&ved=0CDIQFjADOBQ&url=http://www.boipensionsreview.com/includes/pdfs/uk_roadshow.pdf&ei=eCSKTsiNDonK0QXw_KD1Dw&usg=AFQjCNFN5O6eFsLXMJemxJvoaDW4k3JKFA

Quite extraorinary how the taxpayer has picked up the tab for AIB and BOI DB pension schemes without a mention in the Dail or the national media. A cool €1.5 billion for the better off!
Remember these are loss-making private companies where some beneficiaries were paying nothing up until recently with other paying 2.5%. The taxpayer should have had no role in this.
The workers in Waterford Crystal must feel like fools!
 

hammer

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Very important that all bank staff get good pensions when they retire or they wont be able to keep the golf membership going and continue to socialise with their public servant friends :)

If anything the ordinary staff deserve better pensions as the last 3 years must have been horrendous.
 
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Very important that all bank staff get good pensions when they retire or they wont be able to keep the golf membership going and continue to socialise with their public servant friends :)

If anything the ordinary staff deserve better pensions as the last 3 years must have been horrendous.

Interesting how this is only now being highlighted and mainly in relation to the 'pillar' bank AIB!

The media are concentrating on senior executive pay but the reality is that all older staff on DB schemes have had their pension baled out by the taxpayer while making minimal contribution themselves to their 2/3 final salary pension.
Nice money if you can get it!!

Well done Larry Broderick!
 
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Dylan2010

I like lower taxes but in this case there should be a super tax of up to 90% on all pension payments where the funds have not been self generated. In reality the Zombie banks should have been put to sleep years ago if the market was allowed to work. But now people not a party to this have to pay for it??? crazy statist logic
 

DCon

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Very important that all bank staff get good pensions when they retire or they wont be able to keep the golf membership going and continue to socialise with their public servant friends :)

If anything the ordinary staff deserve better pensions as the last 3 years must have been horrendous.
Michael Noonan, the bankers friend, will make sure they are looked after.

Are FG FF or are FF FG?
 


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