Employers' group IBEC has warned that the Government's pension levy will leave employees facing higher pension contributions, lower retirement income and the potential closure of some pension plans altogether.
Their comments are based on a survey of employers belonging to IBEC, which describes the Government's pensions policy as being in tatters.
Traditionally, defined benefit pension schemes carry better guarantees of entitlements for workers.
However, IBEC says the Government's pension levy to fund the jobs initiative will force employers to cut benefits for employees.
According to their survey, 46% of respondents anticipate that the levy will trigger a cut in benefits for current employees.
At least 29% forecast reductions in payments to pensioners, while 23% anticipate that they will have to wind up their defined benefit pension schemes completely.
IBEC estimates that the four-year levy could cost a defined benefit pensioner €1,000 for every €10,000 due per annum.
IBEC met Social Protection Minister Joan Burton this morning to voice employers' concerns.
Director of Industrial Relations Brendan McGinty urged the Government to consider alternatives to the pensions levy in order to restore confidence - including early access to AVCs, mechanisms to invest in infrastructure bonds and a sunset clause to limit the duration of the levy.
