AIB agrees to defer closure of pension schemes pending more talks at Labour Court

AIB told staff yesterday that it has agreed to defer the closure of its defined benefit pension schemes pending further talks at the Labour Court.

Shutting these pensions schemes in Ireland and the UK forms part of AIB’s proposal to reduce its total payroll by between 6 and 10 per cent, as per a direction to all Irish-owned banks from Minister for Finance Michael Noonan earlier this year.

The Irish scheme was slated to close on June 1st, while the UK one was due to close on July 1st. These have now been deferred.

This decision follows talks at the Labour Court on Monday between AIB and the Irish Bank Officials Association (IBOA).

The court asked for a report to be prepared by experts nominated by each side on technical aspects of the proposed closure of the defined benefit schemes to future accrual.

It will resume its hearing on June 24th.

IBOA general secretary Larry Broderick welcomed AIB's decision. "The court is engaged in working through a very complex agenda covering pay, pensions, job security, hours of work, and future terms and conditions of employment," he said.