Ulster Bank and IBOA have agreed to measures which will improve the pension arrangements for Ulster Bank employees.
Prior to 1990, the staff in Ulster Bank had a defined benefit pension scheme, which entitled them to two-thirds of their salary after 40 years service.
Under changes made in 1990, employees were only entitled to receive two-thirds of their salary including their state pension. Under today's arrangement, the pension entitlement excludes the state pension.
The deal is to be backdated to July, 2002, the point at which IBOA raised the issue with Ulster Bank. The deal was recommended by an independent mediator, Mr Kieran Mulvey.
IBOA claims that Ulster Bank employees in Northern Ireland will be £3,126 per annum better off, while employees in the Republic of Ireland will be €6,634 better off on average having completed 40 years. It also estimated that the changes will affect around 2,000 staff in the bank, most of whom are young people who have had the less favourable pension contract since 1990.
