Details of the today’s sale of “amortising bonds” by the NTMA are available here. See here for the “information memorandum”. The NTMA statement announcing the intention to sell the bonds in response to demands following the annoucement of the revised Pensions Board funding standard is here.
The new bonds will facilitate the development of “sovereign annuities”. While there is no easy answer to the funding crisis in defined-benefit pension schemes, risks placed on pensioners through default risk on sovereign bonds should not be neglected.
A briefing statement on sovereign annuities from the The Society of Actuaries in Ireland is available here. Guidance to trustees and providers of sovereign of annuities is available from this Pensions Board link (see Related Documents). A FAQ on the revised funding standard is available here.