Bank of Ireland has rejected accusations from the Irish Bank Officials' Association (IBOA) that proposed changes in its pension arrangements for new employees is morally reprehensible.
General Secretary of the IBOA Larry Broderick said this morning that plans to scrap the Defined Benefit Pension scheme for new employees in favour of a "convoluted scheme that will deliver a substantially reduced pension" flew in the face "of all logic on the pensions issue".
He said the decision displayed Bank of Ireland's "contempt" for the Government campaign on pensions. He said the IBOA had written to Minister for Social and Family Affairs Seamus Brennan seeking prompt intervention.
"Needless to say, something as fiscally and socially irresponsible as this proposal wouldn't even be proposed for staff in the public service," he said
But in a statement released this afternoon, Bank of Ireland described the new arrangements as "progressive, responsible and providing long-term security for both employees and the pension fund".
It said that existing employees would not be affected by the changes and would retain their existing pension scheme.
"The bank's overall aim is to provide good pension benefits for all group employees, enabling them to receive a decent pension at retirement. The new scheme aims to ensure that the pension structure is modern and progressive, is managed efficiently and can ultimately bring greater consistency in pension provision across the Group," a statement said.