Public Sector Pensions The Regulatory Perspective

1. Public Sector Pensions The Regulatory Perspective Grace Guy The Pensions Authority 20 November 2014

2. Focus • Overview of Irish pensions landscape • Duties and responsibilities of trustees/ administrators under the Pensions Act

3. The Pensions AuthorityEstablished by the Pensions Act, 1990

4. The Pensions Authority • Key objectives • No pension monies are misappropriated • Members receive full entitlements • Schemes properly funded • Pension assets are appropriately invested • Disclosure of information - Members appropriately informed

5. Overview of Irish Pensions Landscape • 3 pillars • State pension • Occupational pension schemes • Personal pensions

6. Overview of Irish Pensions Landscape • Pillar 1: State pension • Contributory pension of maximum of €230.30 per week • Means-tested non-contributory pension of €219 per week • Pillar 2: Occupational pension schemes • Employer sponsored DB and DC schemes • Operate on a funded basis (private sector/commercial state) and pay-as you go basis (public service) • AVCs – top-up benefits • Pillar 3: Personal pensions • Personal pension vehicles • Includes Personal Retirement Savings Accounts (PRSAs) and Retirement Annuity Contracts (RACs)

7. Pensions in numbers 107 Public Service Schemes 300,000 members 800 Funded DB Schemes 190,000 members 200,000 PRSAs 200,000 RACs 60,000 DC Schemes 230,000 members

8. Pensions coverage in the Irish Workforce

9. Pension asset values • Approx. 80 bn Euro • Private Sector/ • Commercial State Schemes

10. Annual PS pensions bill • Approx. 3 bn Euro p/a Public Service Schemes

11. Public sector scheme legal requirements • Legal responsibility with the scheme administrator • Legal obligations set out under the Pensions Act • Some carve outs but the following applies: • Registration • Fees • Disclosure obligations • Equality • Whistleblowing • IDR Procedure • Family Law

12. Registration and Fees Registration • Not later than 1 year after commencement • Changes to registration details must be notified within 12 months Fees • Annual fees must be paid in respect of each scheme year by 31 March each year • Fee is based on number of active members

13. Disclosure Obligations • Disclosure to members and others • Pension benefit statement • Leaving service options letter • Information on retirement or death • Notification of grant of PAO • Constitution and basic information on the scheme • Annual report • Disclosure to the Pensions Authority • Annual scheme information (ASI returns)

14. Equality • Discrimination prohibited on 9 grounds • Certain exceptions for gender, age, civil status grounds

15. Reporting obligations • Mandatory reporting • Voluntary reporting • Protected Disclosure Act

16. Regulatory Activity / Sanctions • Inspections/ investigations/ audits • Powers in relation to non-compliance: • Prosecutions – all breaches of the Pensions Act are a criminal offence • On-the-spot fines • €2,000 per trustee/administrator • Late registration of schemes • Failure or delay in notifying amendments to the Authority • Failure to provide required/requested information • ASIs • High Court orders

17. Conclusion Ensure you: • Know your legal obligations under the Pensions Act • Comply with them • If in doubt, ask the Pensions Authority for information

18. Any questions?