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AIB won't rule out cutting retired workers' pensions

AIB has refused to rule out cutting the pensions of retired bank staff as it tries to make savings demanded by Michael Noonan by slashing its overall wage and pension bill.

AIB chief executive David Duffy said he is confident that the bank will meet the target set by the minister for finance to cuts its overall staff costs by between 6pc and 10pc.

The bank chief would not say if his own pay will be cut under the plan, because he has not yet presented the bank's proposal to the minister. It would be "a little indiscreet before we respond to the minister", he said.

He refused to say whether retired staff will be hit under the plans to shave 6pc to 10pc from the bank's staff costs. AIB has already cut costs with a 15pc pay cut for its most senior executives – including Mr Duffy.

Fears that AIB pensioners will suffer in the latest round of cuts have been raised after the Irish Independent reported that Permanent TSB will wind up its defined benefit pension scheme.

Irish Independent