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Irish Women Lawyers Association4 July 2009
David MaloneHead of InformationThe Pensions Board
Missing - Our future Women and the Great Pensions Robbery
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)
(Figures at end December 2008)
The Pensions Board
Established by the Pensions Act, 1990
Operations:
• Supervision, regulation and enforcement
• Policy, legal and actuarial
• Information and awareness
Regulation and Compliance
• Risk based assessment
• Misappropriation of scheme assets
• Registered Administrators (RAs)
• Board prosecutions and on-the-spot fines
Key Pensions Issues and Recent Developments
• Pension expectations
• Investment losses
• Investment risk
• Risk management
Women and Pensions
A Changing World
People are Living Longer
More Contract Work
More mobility in careers
Changing work patterns
More Part Time Working
Single Parent Households
Smaller Families
Separation/Divorce
Changing demographics
2006 2026 2056
No’s at Work 2,000,100 2,268,000 2,125,000
Aged over 65 464,000 844,000 1,532,000
No’s at work per person over 65
4.3 2.7 1.4
National Pensions Action Campaign
Pensions Coverage for Women
• 50% of women in the workforce have a personal pension up from 45% in 2002
• as compared to 56% for men
*Source: CSO Quarterly National Household Survey Update 2008
Reasons for putting it off 36% said they couldn’t get around to organising a pension
18% felt they couldn’t afford a pension, citing the following reasons: nature of employment mortgage /loans/debts childcare/ caring payments and responsibilities
majority had difficulty understanding the tax on pensions
40% admitted to giving very little thought/no thought to their income when they retire
Source of statistics: Red C Consumer Market Research 2008
To provide regular income in retirement, or early retirement due to ill-health
Tax Reliefs
Part of your retirement benefit may be paid as tax-free cash sum
Pension schemes do not pay income or capital gains tax on investment returns
Provision of lump sum benefit income for surviving dependants
Income Tax and PRSI relief on employee contributions
Why have a pension?
Pension = income in retirement
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
Pensions on Separation or Divorce
Your pension entitlements arising from an occupational or personal pension arrangement may be affected by separation or divorce
Pension Adjustment Orders (PAOs) are used to
designate part of the pension benefits to a non member spouse or a person representing a dependent child.
Pensions in the workplace
• A good pension scheme has been long recognised as a very valuable asset for both the company and its employees.
• There is a stronger commitment from employees to participate in pension schemes where the employer makes a contribution.
• A company benefits from having:– a reputation and respect as a good employer.– a workforce that feels valued and important– increased loyalty and commitment from staff– an enhanced staff recruitment, reward and retention
package
Employers’ Obligations/ Opportunity
Access for all Employees
– By law an employer must provide ALL employees with some form of access to a pension, whether they are in full-time, part-time, temporary, contract or casual employment.
– All employers regardless of the size of their workforce are obliged to provide access to a Standard PRSA if those employees fall into the category of “excluded employees”
– Pensions Board also encourages all employees to ask the employer about their pension rights
Pensions Information
WebsiteGuidance & FAQs
E-mail alertsEnquiry serviceTrustee supports
We all have a responsible role to play…..
…tell a friend today about starting a pension!