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The Pensions Board

Learn about Ireland's Pensions Board functions, regulations, and types of private pensions. Secure your retirement income knowledge with the latest updates.

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The Pensions Board

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  1. The Pensions Board Andrew Nugent Assistant Head of Information Services The Pensions Board

  2. 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

  3. The Pensions Acts 1990 - 2008 • Part I – Preliminary and General • Part II – Establishment of Pensions Board • Part III – Preservation of Benefits • Part IV – Funding Standard • Part V – Disclosure of Information • Part VI – Trustees of Schemes *1 Part VIA – Registered Administrators *2 Part VII – Equal Treatment *1 Introduced by the Social Welfare and Pensions Act,2008 *2 Equal Pension Treatment introduced by Social Welfare(Miscellaneous Provisions) Act, 2004

  4. The Pensions Acts, 1990 - 2008 *3Part VIII– Compulsory and Voluntary Reporting *3Part IX – Miscellaneous Applications to the High Court *3Introduced by the Pensions (Amendment) Act, 1996 *4Part X – Personal Retirement Savings Accounts (PRSA’s) *4Part XI – Pensions Ombudsman *5 Part XII – Cross Border Schemes *4Introduced by the Pensions (Amendment) Act,2002 *5Introduced by the Social Welfare and Pensions Act,2005 • Social Welfare Law Reform and Pensions Act, 2006 • Social Welfare and Pensions Act, 2007 • Social Welfare and Pensions Act, 2008

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

  6. Types of Irish Private Pensions • 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

  7. Regulation/Compliance (1) • Regulation is underpinned by Pensions Acts and Supervised by Pensions Board • Main Areas of Regulatory Activity are: • Scheme Registration • Scheme Investigations • Monitoring of Funding Standard • Cross-Border Schemes • Monitoring of Disclosure of Information Compliance • Prosecutions • Fines (recently introduced)

  8. Regulation/Compliance (2) • Pensions Board taking tough approach for breaches of the Pensions Act • Board recently obtained a High Court judgement against an Irish company for €186,000 in pension arrears • On the spot fines regime in place since September 2007. Fine for each offence €2,000 • Introduction of Registered Administrators since 2008

  9. 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

  10. 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

  11. 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!

  12. Changing demographics

  13. 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 • Recent social partnership agreement which includes a commitment to produce legislation on the transfer of undertakings

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