1 / 13

William Fry Spring Breakfast Briefing Series 29 April 2009

This briefing highlights the challenges faced in the current economic climate and discusses strategies to overcome them in relation to pensions. It covers topics such as pension adequacy, changing demographics, DC scheme issues, DB scheme funding, and regulation and compliance.

jrios
Download Presentation

William Fry Spring Breakfast Briefing Series 29 April 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. William Fry Spring Breakfast Briefing Series29 April 2009 PENSIONS - OVERCOMING THE CHALLENGES IN TODAY’S ECONOMIC CLIMATE David MaloneHead of InformationThe Pensions Board

  2. The Pensions Board focus Three key operational areas: • Supervision, regulation and enforcement • Policy, legal and actuarial • Information and awareness

  3. Numbers in Irish pensions • Company pension scheme 579,922 members in 1,271 DB schemes 272,197 members in 90,424 DC schemes • Personal Retirement Savings Accounts (PRSAs) 155,632 PRSA contracts in force (88,213 employers had signed up with a PRSA provider ) • Personal pension plans and Retirement Annuity Contracts (RACs) 200,000 plus contracts (Irish Insurance Federation) • Fund assets approximately €60 - €80 billion • Voluntary regime for supplementary pension provision (Figures at end December 2008)

  4. Changing World We Live In • We are living longer • More contract work • More mobility in careers • Changing work patterns • More part-time working • Single parent households • Smaller families • Separation/divorce

  5. Changing Demographics

  6. Why Have a Pension? Where will your income come from when you retire? The current State social welfare pension is €230.30 per week (or € 11,975.60 per year) …….will this be enough to meet all your needs in retirement? Almost 80% of the Pensions Board consumer research sample said that the State old age pension would NOT meet their needs in retirement

  7. Pension Adequacy • Pension expectations • Investment losses • Investment risk • Risk management

  8. DC Schemes Scheme members should be provided with: • adequate and understandable explanations of investment choices and risks • schemes should provide lower risk investment choices to members as they approach retirement • schemes should have well-designed default investment options for all members • scheme members themselves should also take an active role in their pensions

  9. DC Schemes Issues • Compulsory annuity purchase • Annuity purchase deferral • Statement of Reasonable Projection • Long term DC strategy (relax compulsory annuity purchase requirements?) • Pensions Board guidance

  10. DB Scheme Funding Current difficulties • over-reliance on outperformance of equities over other investments Actions taken • relief measures - extension to recovery periods • Government Pensions Framework • Pensions Board guidance

  11. Pensions Information Information Services Website Guidance & FAQs E-mail alerts Enquiry service Trustee supports www.pensionsboard.ie

  12. Regulation and Compliance • Risk based assessment • Misappropriation of scheme assets • Registered Administrators (RAs) • Board prosecutions and on-the-spot fines

  13. Thank You

More Related