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Thread: Are taxpayers subsidising Bank of ireland pension?

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    Default Are taxpayers subsidising Bank of ireland pension?

    BoI staff face vote on deal to tackle pensions deficit - Irish, Business - Independent.ie
    Its nice to see that the loss-making BOI increased salaries by 3.5% and that staff pay 2.5% contribution to pension but is it asking a bit much of taxpayers (public servants included) to pay in an additional 750million to keep staff contibutions so low.
    The taxpayer has pumped in billions already but this seems a bit rich to reward so many who got bonus payments for pushing insane loans to our developer class.
    I'm sure good ol Dan McLoughlin must be pleased.

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    Politics.ie Member bormotello's Avatar
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    Because nobody wanted participate in bunk run and see NAMA banks dead, it means that most of people think that BoI staff deserves their gold plated pensions and recent pay increases
    If people would start to move their savings into PTSB and Ulster bank, then BoI staff would think twice before asking for pay increase and forcing taxpayer to subsidize their pensions

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    It is also interesting to note that, unlike the public service pay proposals, neither the 750m cash injection into the pension fund nor the low pension contributions appear to have an attached "escape clause" in the event of adverse financial circumstances.

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    Larry Broderick, The pot 'is truly calling the kettle black' today!

    Taxpayers are indirectly subsidising the loss-making BOI pesnion fund to the tune of €750 million.
    Meanwhile the poor souls from the Irish Bank Officials Association contribute only 2.5% of their salary to their generous defined benefit pension scheme. It looks like they bought too many of their own shares!! But they want the taxpayer to subsidise them.
    Some cheek from Broderick to be ranting about Richie Boucher.

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    Politics.ie Member powderfinger's Avatar
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    Does the Bank of Ireland pension fund (Salix Trust) operate a separate DB scheme for Directors and Senior Executives ?
    Last edited by powderfinger; 22nd April 2010 at 04:10 PM.

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    Quote Originally Posted by birthday View Post
    Taxpayers are indirectly subsidising the loss-making BOI pesnion fund to the tune of 750 million.
    Meanwhile the poor souls from the Irish Bank Officials Association contribute only 2.5% of their salary to their generous defined benefit pension scheme.
    Insanity. Article above says the banks are paying 15% of employee salary into the pot. They need to wake to the new reality that their business is insolvent.

    The new government has to stop the 750m payment. I really blame the last government as they have let this go on for years.

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    We have now reached the stage where we are closing hospitals while funding Defined benefit pensions for older bank staff.

    Should the state directly or indirectly, continue to have any role
    in funding shortfall in insolvent
    BOI (and AIB) defined benefit pension schemes?

    Bank staff who have taken no pay cuts (actually recieved pay rise in 2008) who contribute only 2.5-5% of their salary ( and receive tax relief on this paltry amount) who receive 15% contribution from bank (taxpayer) who have
    very generously also promised to inject 750 million over five years.

    Is it legitimate to use taxpayers money in this way to subsidise relatively well off individuals who make little or no realistic contribution to their pensions.

    Have the IMF anything to say on this given that, according to Ruairi Quinn, they demand a reduction in the money spent on Special needs assistants?

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    Whatever happened to the financial regulators spiel of "investments may fall as well as rise" or does it not happen to bankers? It is their fellow employees that invested poorly so why should everybody else pay these DB pensions valued on paper not worth using in the jacks.

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    Employer contributing 6 times the employees contribution is crazy especially as it is defined benefit which means employer will likely have to subsidise again in later years. That is bordering on the terms politicians get which is syaing something. This is 100% subsidised by tax payers as they company would have folder without state support. Bankrupt companies don't usually pay good pensions.


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    Whats new in this?

    A state run by people that put the interests of thing others than the state first could be no other way.

    This state will fund pay rises and pensions of those it values and needs, that has clearly been shown to be well connected parts of the financial sector. Even in public ownership no unpleasantness will be meated to those that control bank accounts, loans and confidential financial info on the decision makers.
    If you are on the lower rungs and hold no power over these peoples finances start working on your CV, if not enjoy the best job in the country.
    Ask not what your country can do for you, but what your country can do for a bank

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