News

The Minister for Social Protection, Joan Burton, has announced a package of legislative measures to address the situation where an underfunded DB pension scheme winds up or elects to restructure.  The legislation is due to be published and enacted in the coming weeks.

The Society of Actuaries in Ireland has responded to a Pensions Board consultation on the future of defined contribution (DC) pensions. 
 
In the response, the Society calls on the Pensions Board to develop and articulate an over-arching vision for the future of DC pensions, rather than tackle individual issues on a piecemeal basis.  The Society also offers views on simplification of the regulatory framework, alternatives to the trustee model, investment matters, and engaging pension scheme members through effective communications.    

On 4th July EIOPA published the first EU study on the financial situation of pension funds. The results show that the holistic balance sheet approach benefits the protection of current and future generations.  And the outcomes reinforce the need to continue working towards a market-consistent and risk-based regulatory regime in Europe.

Today, the Minister for Social Protection, Joan Burton T.D. launched The Pensions Board Annual Report and Accounts 2012. At the launch, The Pensions Board highlighted its ongoing investigations into pensions contributions deducted by employers but not passed on to pension schemes, as well as the challenges for defined benefit schemes and concerns about the governance of Ireland’s €70 billion pensions sector.

The European Insurance and Occupational Pensions Authority (EIOPA) has published its Annual Report 2012 as requested by EIOPA Founding Regulation (Article 43.5).

2012 is the second year of EIOPA’s work as a European Supervisory Authority. In the course of this year, EIOPA continued its work in its seven core areas: regulatory tasks; supervisory tasks; consumer protection and financial innovation; creation of the common supervisory culture; financial stability; crisis prevention, management and resolution; external relations.

The Minister for Social Protection, Joan Burton T.D., has announced a number of regulatory changes to assist defined benefit schemes as they prepare their funding proposals before the Funding Standard deadline of 30th June 2013.  The regulations will reduce the level of risk reserve that the schemes are required to

Commissioner Barnier has indicated his intention to come forward with a proposal for a Directive to improve the governance and transparency of occupational pension funds in the autumn of 2013. At this stage, and as long as more comprehensive data is needed and Solvency II is not in force, the proposal for a Directive will not cover the issue of the solvency of pension funds. In light of the differing situations in Member States regarding retirement products and pension funds, it is necessary to continue technical work on the issue of solvency.

The Society of Actuaries in Ireland has issued a press release expressing concern about the delay to the reform of pensions legislation following publication of the Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013 yesterday. The Bill does not address major reforms required to pensions legislation for defined benefit schemes.
 

The OECD has published its Review of the Irish Pension System.

The report provides an international perspective on Ireland’s retirement income provision, the result of a request from the Minister for Social Protection for a focused review on the viability and long-term impact of proposed changes in pension policy, taking into account the impact of the economic downturn. It covers all components of the pension system: state, private personal and occupational plans and schemes for public-sector employees.

Four significant objectives are examined:

The European Insurance and Occupational Pensions Authority (EIOPA) has published the preliminary results of the quantitative impact study (QIS) on Institutions for Occupational Retirement Provision (IORPs) conducted by EIOPA in October – December 2012.

The purpose of this QIS is to assess the impact of the different options included in EIOPA’s advice on valuation and security mechanisms for the financial requirements for IORPs. The QIS is part of the process to advise the European Commission on the review of the IORP Directive.

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on Guidelines on preparing for Solvency II.