Bank of Ireland agrees pension deficit plans

BANK of Ireland has come up with a plan to halve its 1.6 billion (£1.4bn) pension deficit and boost earnings.

The bank said last week it had swung to a loss in the nine months to December and that reversing a rise in its pension costs was a priority.

It yesterday said its main trade union supported proposals that would change the calculation of future pensions and eliminate half of the deficit.

"If such proposals are agreed, the bank and its subsidiaries will increase their cash contributions, above existing cash contributions to the schemes," it said in a statement.