Some 1,100 workers at Analog Devices in Cork and Limerick are to see their pension funds bumped up by a hefty €190m.
The move comes as Analog Devices in Ireland converts from a defined benefit scheme into a defined contribution fund, according to the Irish Independent.
Analog Devices employs 1,100 people in the design and manufacture of semiconductors in Cork and Limerick.
The company has invested €120m in research and development and manufacturing in Limerick in the last five years.
The €190m bump-up in pensions is understood to be a bid to reduce financial uncertainty for workers. Instead of risky defined benefit schemes workers will instead get payouts on retirement depending on the amount they invested, how the fund performs and the length of time it is invested.
The move by Analog Devices is viewed as a model for the private sector.
Unlike most pension funds in the private sector, which are in deficit and have been raided by the Irish government to make up losses incurred by the banking crisis, the Analog Devices pension fund is secure and valued at 125pc of the Pension Authority’s funding standard.
Globally, Analog Devices employs 9,700 people and in 2014 reported revenues of US$2.8bn.
Semiconductor image via Shutterstock