Irish sovereign annuities could reduce pension liabilities by 30%

Irish sovereign annuities could reduce pension liabilities by 30%

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A proposal for pension funds to use sovereign annuities issued by the Irish government could see the liabilities of defined benefit (DB) schemes fall by up to 30%, according to David Harney, chief executive of Irish Life Corporate Business, the largest pension provider and life assurer in the country.

The Irish government has agreed to a joint proposal by the Irish Association of Pension Funds (IAPF) and the Society of Actuaries in Ireland (SAI) to increase the solvency of Ireland's embattled DB