Dealing with a pension deficit

Sir, – To echo your advice to the circa 2,200 managerial grade employees in the CIÉ defined benefit pension scheme ("The Irish Times view on pension reform at CIÉ: little public sympathy", Editorial, August 19th), they should reflect on what happened to the members of the Permanent TSB pension schemes. Consultants advised management to wind up the schemes and therefore, without consultation with employees on alternatives, they ceased funding the schemes.

This left the trustees with no choice but to commence winding up. The bank was at that stage in State ownership and the then-minister for finance chose to allow the schemes to be wound up, despite severe consequences for the members.

The editorial refers to guaranteed benefits but the reality is that, for employees in service, a defined benefit pension is just a promise and not a guarantee, as the members of the wound-up Permanent TSB pension schemes will attest. Those still in a defined benefit scheme should avail of all options offered to retain the benefit and should not assume that it will never be taken from them. – Yours, etc,

JOE FLEMING,

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Glenageary,

Co Dublin.