The Pensions BoardCredit Union Manager’s Association AGM

Andrew Nugent Assistant Head of Information Services

The Pensions Board

The Pensions Board

Established by the Pensions Act, 1990• Main functions are set out in the Act and include

– to monitor and supervise the operation of the Act and pension developments generally

• Promoting pensions development, information and awareness is an associated support function.

• Board conducts the National Pensions Awareness Campaign (NPAC) on behalf of Government as recommended in the “Securing Retirement Income” report of the National Pensions Policy Initiative published in 1998

• Board also has a policy role

The Pensions Board Focus

Three key operational areas:

• Supervision, regulation and enforcement

• Policy, legal and actuarial

• Information and awareness

Company Pension Scheme (99,802 schemes with 800,398 members)(66% DB schemes and 34% DC schemes)

Personal Retirement Savings Accounts (PRSAs)(Over 140,000 PRSAs with asset value of €1.24 billion- June 2008)(86,613 employers had signed up with a PRSA provider )

Personal Pension Plans and Retirement Annuity Contracts (RACs) (In excess of 200,000 contracts – Irish Insurance Federation)

Fund assets estimated between €60 to €90 billion Voluntary regime for supplementary pension provision

Types of Irish Private Pensions

Trustees Main Duties

In broad terms, trustees’ main duties under the Act are:• to ensure contributions are received • to ensure contributions are remitted • to invest the funds• to pay the benefits• to ensure that Funding Standard is met• to keep records and accounts • to preserve or transfer benefits• to disclose information • to ensure equal pensions treatment • to apply the resources of the scheme on wind up • to register the scheme with the Board

Board’s Powers

• Section 18 Authorisation – furnishing of information

• Section 58 Prosecution for non-remittance of deductions within 21 days

• Section 87 High Court order to have company pay ‘unpaid’ contributions to scheme

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On-the-spot fines

• Introduced in Social Welfare Law Reform and Pensions Act, 2007

• Came into force September 2007• Alternative to going to court• More efficient way of addressing compliance

issues• Board gives offender 21 days to remedy the

offence and pay the appropriate fine (€2,000)

On-the-spot fines

On-the-spot fines apply to a range of lesser offences under the Pensions Act, including:

• Failure to register a scheme with the Board • Failure to provide scheme members with

appropriate information • Failure to respond to requests for information

from the Pensions Board • Employers not advising employees of pension

or PRSA deductions

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Where will your income come from when you retire?

• The current state social welfare pension is €230.30 per week (or € 11,976 per year)

• Will this be enough to meet all your needs in retirement?

• Almost 80% say no!

Changing demographics

2006 2026 2056

No’s at Work 2,000,100 2,268,000 2,125,000

Aged over 65 464,000 844,000 1,532,000

No’s at work per person over 65

4.3 2.7 1.4

Current policy issues

• Green Paper on Pensions published in October 2007, followed by consultation phase which is now completed

• Commission on Taxation to consider how best the tax system can encourage long term savings to meet the needs of retirement

• Pensions also a commitment in Programme for Government

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