The Pensions Board: Update The Pensions Board: Update On Current Issues and On Current Issues and

ActivitiesActivities

Mary HutchHead of Information and TrainingThe Pensions Board 7 April 2005

IRISH INSTITUTE OF PENSIONS MANAGERS

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AGENDA

1. PolicyFunding Standard

EU Pensions Directive (IORPS)

National Pensions Review

2. RegulatoryOccupational Pension Schemes and PRSAs

3. Pensions Information/AwarenessNational Pensions Awareness Campaign 2005

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POLICY – FUNDING STANDARD

Social Welfare & Pensions Act, 2005Small change to Standard

AFCs every three years date of first AFC due after 22 September 2005 unchanged new period applies to any subsequent AFCs

Wider grounds for extensions – Regulations

DC schemes to value liabilities – Regulations

Early retirement subject to trustees consent if underfunded scheme

Frozen etc. schemes with over 100 active or deferred members no longer exempt from Funding Standard and certain disclosure

obligations

Schemes which fail Funding Standard recommended disclosure of funding position to members for consideration in revision to Disclosure Regulations

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POLICY – EU PENSIONS DIRECTIVE

Social Welfare & Pensions Act, 2005

Other Regulations Pending

Trusteeship Qualification i.e. training requirements for trustees

Investment Prudent, diversification, unregulated markets Investment policy principles Borrowing (Working Group to consider prudential and tax

issues)

Cross Border Schemes Social and Labour Law issues Exemptions from parts of Pensions Act for overseas members Authorisation

All to be in place by 23 September 2005

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POLICY – NATIONAL PENSIONS REVIEW

Statutory review of pensions coverage due September 2006

Minister bringing forward timing to mid-year 2005

Board to submit proposals to address current situation Progress Report June 2005Full Report late summer

Representative organisations to support and input through organisations by 3 May 2005

Series of workshops to discuss specific aspects

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POLICY – NATIONAL PENSIONS REVIEW

Scope and Main Components

Review of NPPI’s main strategic recommendations

Review of coverage targets in NPPI Report (1998)

Review of current position under Second Pillar

Options to address coverage and adequacy

Trusteeship review post NPR

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REGULATORY

Occupational Pension Schemes

Further prosecutions pending – July

Revisions to S49(3) Guidelines – April

PRSAs

Follow up on 64,000 employer audits

7 prosecutions listed – July

Commitment to ensure employer compliance with access requirements

Guidance Activities

Guidance Notes on Equal Pensions Treatment – June

Revised Guidance Notes onDeterminations by Pensions Board ‘Whistleblowing’ Requirements - June

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NATIONAL PENSIONS AWARENESS CAMPAIGN 2005

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NATIONAL PENSIONS AWARENESS CAMPAIGN STRATEGIC PLAN 2005

Awareness Levels

The Boards Consumer Awareness Research Audits clearly show a positive increase in pensions and PRSA awareness levels rising from 60% at end of 2003 to over 75% at end of 2004.

However, while awareness levels are significant, the coverage rate remains low.

Key Priorities for 2005

The Board plans to conduct a strategic pensions awareness campaign in 2005 which will encourage the conversion of awareness into positive action and responsibility;

1. in the form of increased pensions take up.

1. to build an educational foundation about retirement planning for the future

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ACTION & RESPONSIBILITY

In the pursuit of increased pensions uptake NPAC focus for 2005 will include;

Key Target Sectors

Primary Targets

• Population aged 25 – 35 years old• Women• Graduates• Farming/Rural Community• Self Employed

Secondary Targets

• First time job seekers • Students• Migrant workers

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KEY FOCUS TIMES FOR NPAC 2005

March/April First time job seekers/Students

April Migrant workers

May NPAC - Action WeekJune WomenJuly Family HolidaysAugust Farmers/RuralSeptember GraduatesOctober Self EmployedNov/Dec Save your SSIA into a

pension

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ACTION & RESPONSIBILITY – NPAC 2005

Take Action - Visit the on-line Pensions Calculator at

www.pensionsboard.ie

The 2005 calculator allows you to estimate the net amount of money

you would need to contribute to your pension in relation to your age and current yearly salary to end up with the level of pension you expect

in retirement.

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We all have a responsible role to play…..

….in actively promoting pension take up !