By Business & Finance 
Analog Devices announces its plan to switch from a defined benefit pension scheme to a defined contribution plan for employers.
Analog Devices, a semiconductor manufacturer operating in Ireland since 1976 and employing approximately 1,100 people in Limerick and Cork, today announced it will make an upfront investment of €190m in conjunction with its plans to convert the employee benefits provided under its Defined Benefit (DB) retirement plan to a Defined Contribution (DC) plan.
Through this new retirement arrangement the company aims to safeguard the retirement benefits of past and present employees who are DB Plan members.
“Ireland is critical to our long-term global strategy,” Leo McHugh, VP Instrumentation Business Unit at Analog said. “This action is aimed at safeguarding the retirement benefits of our current and former employees. This new retirement arrangement is designed to deliver a similar retirement benefit while providing greater transparency and flexibility. With today’s announcement, we’ve added another reason for people to build their careers at Analog.”
Denis Doyle, general manager and VP of Manufacturing at Analog added: “Our DB scheme is currently secure and at the last valuation was 125% of the Pension Regulator’s funding standard. We’ve designed this transaction so that all benefits accrued for past service, and a substantial portion of prospective future service will be paid to members of the DB Plan now. Reducing the volatility and uncertainty is important to everyone and we expect this will become a model of best practice.”
