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Friday 29 August 2014

Wind-up of pension scheme will lower payout

Published 03/04/2014 | 02:30

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Angela Kerins could have expected a bumper annual pension if the group's defined benefit scheme had not got into difficulty.

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Pension experts speculated that someone in Ms Kerins's position could have expected to receive an annual pension worth between half and three-quarters of her €240,000 salary – or between €120,000 and €180,000 a year. That would have been on the basis of her continuing to work until pensionable age.

However, the Rehab defined benefit scheme was wound up last year and staff, including Ms Kerins, transferred to a much less lucrative defined contribution scheme.

This means it is impossible for outsiders to have even a ballpark idea of Ms Kerins's entitlements.

"The only ones who can tell you how much the pension is worth are Angela Kerins and Rehab," one expert told the Irish Independent.

So far Ms Kerins has refused to shed any light on the issue.

A Rehab spokesman said: "The board has adhered to the terms and conditions of Ms Kerins's contract. The terms of the contract are confidential and Rehab cannot divulge them without the express permission of Ms Kerins."

Public Accounts Committee member Shane Ross said Ms Kerins would be asked about her exit package next week.

"It is essential in the interests of transparency that we know how much she is getting as a pension," he said.

Irish Independent

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