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Pensions chief warns more defined benefit schemes face being wound up

THE CHIEF executive of the Pensions Board Brendan Kennedy has warned that more defined benefit pension schemes face being wound up.

Speaking on RTE, he said 80pc of such schemes are in deficit.

His comments came after it emerged that Independent News & Media is considering shutting down its defined benefit scheme while Allied Irish Banks has already said it would close its plan.

INM is considering the move because it faces a deficit of €148m which may not be corrected in the timeframe necessary under new regulations.

No final decision has been made by the company but it could mean reduced benefits for members of the scheme who are under 65.

New management at INM is looking at ways to address the pension shortfall.

If it shuts down the scheme, it is understood the proceeds would be distributed and those closer to retirement would get more while younger members would get less.

Meanwhile, INM is set to delist from the New Zealand Stock Exchange.

The company will continue to be listed on both the Dublin and London Stock Exchanges.