The trade union representing AIB employees has welcomed today's recommendation by the Independent Industrial Relations tribunal on pensions for staff at the bank.
The chairman of the tribunal, Kevin Foley, recommended that AIB should establish a defined benefit/defined contribution hybrid pension on a state integrated basis.
In their submissions to the tribunal the IBOA and AIB noted that of particular concern to both the Bank and IBOA was the low level of employees contributing to the Defined Contribution scheme.
Welcoming today's recommendation, the General Secretary of IBOA Larry Broderick said: "Mr Foley's recommendation is significant not just for staff in AIB, but also generally, given that his recommendation provides for the introduction of a Defined Benefit pension scheme in AIB.
"Mr Foley's recommendation has taken on board IBOA's claim for a substantially enhanced pension scheme for our members in AIB".
Mr Foley's recommendations include;
A Defined Benefit(DB)scheme for all staff up to the top of the Assistant Manager pay range.
Each year of service accumulates pension entitlement on a 60th basis.
Bank's contribution will increase by 2 per cent above the DB cap.
Permanent Health Insurance cover to be extended to all staff.
Member contributions will be compulsory and set at 5 per cent of pensionable pay.
New scheme will come into force on 1st December 2007.
Mr Broderick added: "IBOA believes there is a responsibility on all employers to ensure all staff are guaranteed a decent pension into the future and calls on the Government, social partners and other financial institutions to take serious note of Mr Foley's recommendation and study it carefully".