Irish Women Lawyers Association 4 July 2009 David Malone Head of Information The 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 No’s at Work 2,000,1002,268,0002,125,000 Aged over ,000844,0001,532,000 No’s at work per person over

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 € per week (or € 11, 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 Website Guidance & FAQs alerts Enquiry service Trustee supports

We all have a responsible role to play….. …tell a friend today about starting a pension!