AN increasing number of senior Irish executives now have pensions which allow them to retire at 60 with full salary entitlements, even if they have relatively short service. The latest survey from the Irish Pensions Trust (IPT) suggests the gap between the benefits provided for executives and other employees are widening.

The issue has been highlighted by the recent £750,000 settlement for former Bord na Mona chief executive Dr Eddie O'Connor and at the other extreme, the growing concern in the EU at the lack of pension provision for part time and casual workers. As the fastest growing sector of the workforce, the European Commission has expressed concern that part time workers will create problems of state social security schemes further down the road if schemes are not put in place now.

In a study of trends in executive pensions, Mr John Feely of IPT says that over a third of the pension plans for executives provide pensions worth two thirds of salary, if they have at least 10 years service with the company. "This is obviously a very valuable benefit for executives who join these companies at relatively high ages," writes Mr Feely.

Just under half of the these, executive pension schemes are integrated with the State scheme. In 40 per cent of pensions, there are significant additional benefits in kind and emoluments based on performance while in the job, such as bonuses and commissions.

Unlike most private sector schemes for other employees, the majority of executive pensions include provision for pensions to be paid to surviving spouses. And unlike practically all private schemes for other employees, two thirds of executive pensions have some form of inflation proofing, usually based on the consumer price index or with a ceiling of 3 to 5 per cent.

Death in service benefits average eight times salary, again significantly more than most employee schemes and 42 per cent of the plans surveyed do not require contributions from the beneficiary.

The schemes are obviously designed to overcome the problem of recruiting outstanding executives with a proven track record elsewhere, who could not otherwise afford to leave existing jobs. But, with the growing involvement of elected employee trustees on pension boards, it is likely to generate pressure to extend some of these benefits to other staff.

Meanwhile, the European Commission is beginning consultations on how the pension needs of casual workers should be met.