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Explore the governance of cross-border pension schemes from the Irish regulator's perspective. Learn about EU Directives, Irish implementation, funding requirements, and practical aspects. Discover Ireland as a prime pensions location with regulatory balance, investment opportunities, and global services. Understand Irish regulation, asset pooling vehicles, and the next steps in pension scheme location decisions. Delve into the implications of the Pensions Directive for a single market, investment pooling, liability pooling, and Pan-European Pension Funds.
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APLI/IPEBLA Conference Governance of Cross-Border Pension Schemes – The Irish Regulator’s Perspective Anne Maher, Chief Executive and Brendan Kennedy, Actuarial Adviser The Pensions Board 2 June, 2006
Agenda • Background to cross-border governance • Irish cross-border governance • Ireland as cross-border pensions location (and regulator) 2
Background Instruments • EU Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision (“IORPs Directive”) • Implementation of IORPs Directive into national law • Protocol relating to Collaboration of Relevant Competent Authorities 3
Background Irish Implementation • Social Welfare and Pensions Act, 2005 inserts Part XII of the Pensions Act, 1990 (as amended) • Occupational Pension Schemes (Cross-Border) Regulations, 2006 covers: • Authorisation • Notification • Social and Labour Law • ‘Minimalist’ implementation 4
Cross-Border Governance Irish Social and Labour Law • Part III of Pensions Act • Preservation provisions and minimum value of contributory retirement benefits • Part Vof Pensions Act • Disclosure of information requirements • Section 59B • Prohibition on reducing pension payable • Section 59C • Protects pensions in payment which are integrated with State pension 5
Cross Border Governance Funding Requirements • Fully funded at time of application • Managed for full funding • Underfunded schemes – Board approval • Pensions Board guidelines • EU Commission clarification 6
Cross Border Governance Practical Requirements • New schemes: • Registration / authorisation • Notification • Waiting period • Existing schemes: • Authorisation / notification • Waiting period 7
Ireland as Pensions Location • Tax arrangements • Irish law incorporates cross border tax reliefs • Investment Opportunities • Common Contractual Fund (CCF) • Pension tradition/services available • Ireland has long established private pension structure • Availability of tried and tested pension skills/resources • Investment, Actuarial, Accounting, Legal, Benefit consulting, Benefit administration, Compliance skills available in Ireland • Regulatory/compliance regime • Acceptable and balanced regulation by open and accessible regulators/supervisors in Ireland • Ability to accommodate countries outside EU • Global services available in Ireland 8
Ireland as Pensions Location • Pan-European Pensions Task Force • Examining opportunities in international pensions area • Will facilitate initiatives/changes • Suite of asset pooling vehicles • Unit Trust (Fixed Income Investments) • Limited Partnership • UCITS CCF (Equities Investments) • Non-UCITS CCF (Alternative Investments) 9
Ireland as Pensions Location Irish Regulation • Balance between reasonable cost and member protection • Transparent/open environment • Reasonable level of investment freedom • Acceptable (we hope “respected”!) 10
Next Steps • Clarification of some Directive requirements • Protocol “working” between Member State pension supervisors • Consideration and decision on location by pension scheme sponsors and commercial providers 11
In Conclusion • Pensions Directive • Is first step in single market for pensions • Provides a framework for change • Investment/asset pooling is happening • Liability pooling and centralised administration are next steps • Full Pan-European Pension Funds • Will take time • But WILL come about 12
