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Monday 5 December 2016

Tycoon's nest egg is likely to be safe

Published 15/04/2011 | 05:00

A pension expert said last night that while it is likely Sean Quinn invested money in a pension fund over the years, some successful business owners relied instead on the value of their companies to provide an income.

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The last set of accounts for Quinn Group (ROI) do not detail any specific pension entitlements that have accrued to Sean Quinn, but it's likely he has a decent pension scheme in place to provide for his future.

Aidan McLoughlin, managing director of the Independent Trustee Company, said that pensions, because they were in place to provide for an individual's future financial needs, were typically ringfenced, so that even if a business went bust, pensions could still ultimately be paid.

Mr McLoughlin noted ex-Anglo Irish chief David Drumm offered to surrender all of his €5.4m pension fund to the bank during negotiations to settle €8.5m in loans he held with the institution.

Rejected

That pension scheme was to provide Mr Drumm with an annual pension payment of €271,000 once he reached the age of 55. However, it's thought the bank rejected that offer because it was uncertain whether it would be legally able to access the pension funds.

Mr McLoughlin said that in one high-profile case last year, businessman Brendan Murtagh, a co-founder of Cavan insulation maker Kingspan, lost a court battle to retain control of a €1.2m approved retirement pension fund as Anglo sought repayment of the loan.

Irish Independent

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