OECD EXPERT MEETING ON PENSIONS AND INSURANCE IN THE BALTIC COUNTRIES

Mary HutchHead of Information & TrainingThe Pensions Board Riga, LatviaIreland 5 October 2004

ROLE OF REGULATOR IN PROVISION OF FINANCIAL INFORMATION AND EDUCATION

2.

Agenda

• Some Facts on Irish Pensions

• The Pensions Board

• Pensions Development / Information / Awareness Information ServicesGuidance ServicesTrustee Support Services

• Promulgating the Pensions Message

• National Pensions Awareness Campaign 2003/2004

• Some Conclusions

3.

SOME FACTS ON IRISH PENSIONS

• Social Welfare (First Pillar) provides universal basic Flat Rate pension amounting to €167.30 per week

• Voluntary regime for supplementary pension provision

• 112,665 occupational (i.e. employers) pension schemes

• 724,333 members in occupational pension schemes

• Over 65,000 Retirement Annuity Contracts (i.e. Personal/Self-employed Pensions)

• 32,920 Personal Retirement Savings Accounts (PRSAs)

4.

SOME FACTS ON IRISH PENSIONS

• Pension coverage rate for all persons in employment is 52.4%

• Overall assets of Irish private pension funds are over €52 billion

• Occupation pension schemes are set up under trust and personal pension plans / PRSAs are contract based

• Both occupational and personal pensions are encouraged by tax relief on an Exempt/Exempt/Taxed base

5.

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

• Board has 2 statutory roles – regulatory and policy

• Promoting pensions development, information and awareness associated support function incorporated in Board’s Strategy 2002 – 2005

• Board conducts National Pensions Awareness Campaign (NPAC) on behalf of Government

6.

Pensions Development / Information / Awareness

Information Services

• Information Booklets

Explains members rights under Pensions Act and under other relevant pensions legislation

Women and Pensions Family Law and atypical employment 21 booklets produced to date

• Frequently Asked Questions (FAQs)

• Case Studies

• Distribution network

• Available free of charge and online

• Enquiry Service Lo Call 1890 65 65 65

7.

Comparison of January - December Annual Enquiries 1998-2003

3633 32164143 4411

5366

7730

0

20004000

60008000

10000

1998 1999 2000 2001 2002 2003

Webstats up to 23 August 2004

7,3699,443 10,156

13,58811,560

8,936 8,389 7,908 7,5549,456

8,4487,535

9,546

13,293

8,647

02,0004,0006,0008,00010,00012,00014,00016,000

Pensions Development / Information / Awareness Annual Enquiries

8.

Pensions / Development / Information / Awareness

Guidance Services• Board has statutory responsibility for providing technical

guidance on Pensions Act and its Regulations

• Guidance is provided for pension practitioners in the form of Legislation Service Guidance Notes Technical Enquiry Service

• Form of indirect regulation which contributes to protection of consumer interests

9.

Pensions / Development / Information / Awareness

Trustee Support Services• Board also has statutory duty to provide guidance for trustees

on their duties and responsibilities

• Trustee support services include: Information booklet for trustees Trustee Handbook Codes of Practice Trustee enquiry service Trustee Training

• Trustees have responsibility for safeguarding retirement income of members and their dependants

• If trustees do not do their job properly it is members and dependants who will suffer

10.

Promulgating the Pensions Message

• Board recognises: need for awareness among general public that Ireland has

robust system of pensions regulation need to encourage greater take up of pensions especially

among young persons, women and atypical employees

• Board utilises various methods of communicating “pensions message” Information presentations Pensions Board Bulletin Pensions Board online Media Relations Public Relations

- Annual Strategy

11.

National Pensions Awareness Campaign 2003

12.

National Pensions Awareness Campaign 2003

2003 Campaign Overview

• Just over half (50.7%)* of the Irish workforce currently have supplementary cover, as identified in the CSO Quarterly National Household Survey, Pensions-2002.

• €500,000 was made available to carry out a National Pensions Awareness Campaign (NPAC), on behalf of Government in 2003 and again in 2004.

• The Board established an NPAC – Project Team to devise an awareness strategy and

implementation plan for this important project.

• The primary objective of the campaign is to heighten pensions awareness with the view to increasing pension coverage in Ireland.

*Increased to 52.4% in 2004 survey

13.

National Pensions Awareness Campaign 2003

All the actions within the Campaign are designed to be sharp calls to action. Using our Tag Line - 2003Think about tomorrow. Today.

• TVAdverts• Radio Adverts• Media print supplements • Posters • Internet Adverts• Shopping Till Receipts• In-Store Plasma Screens• Radio and Press interviews• Community Forums• National Pensions Awareness Week 13 – 19 October 2003

all focused on directing people into action – to either talk to their employer, contact their bank, insurance company, building society or financial advisor to discuss pension options.

14.

National Pensions Awareness Campaign 2003

Support Agencies promoting NPAC

Contact was made with the wide range of support Agencies who have agreed to assist in delivering the NPAC message to their constituent clients and members.

These include:Irish Congress of Trade Unions (ICTU) Irish Business and Employers Confederation (IBEC)Small Firms Association (SFA)Chambers of Commerce in Ireland (CCI)Irish Small and Medium Enterprises (ISME)Institute of Personnel and Development

Other organisations and group involved in this process include:Citizen Information Centres Irish Farmers Association / Irish Country Womens AssociationNational Library NetworkRural Leader GroupsArea Partnership CompaniesIrish Hotels FederationLicensed Vintners AssociationRestaurants Association of Ireland

15.

National Pensions Awareness Campaign

2004

16.

National Pensions Awareness Campaign 2004

The Pensions Calculator on-line @ www.pensionsboard.ie

17.

National Pensions Awareness Campaign 2004“Pensions Checklist”

18.

National Pensions Awareness Campaign 2004

The Pensions Calculator

19.

National Pensions Awareness Campaign 2004

On Street Public Promotion

100,000 Pension Calculators Giveaway

20.

National Pensions Awareness Campaign 2004

Promotions Activity

A2 Bus Posters on 500 Dublin Buses

21.

National Pensions Awareness Campaign 2004

Promotions Activity 2004

5000 A2 Posters in Offices, Libraries, Public Information Centres, GAA, Rugby, Soccer and Sports Clubs throughout the country

22.

National Pensions Awareness Campaign 2004

Promotions Activity 2004

13 – 19 September 2004

48 Sheet Billboard Admobiles travelling nationwide for National Pensions Awareness Week

23.

National Pensions Awareness Campaign 2004

Promotions Activity 2004

On-Line Banner Advertising

24.

National Pensions Awareness Campaign 2004

Promotions Activity 2004

40,000 Women & Pensions booklets distributed at the Mini Marathon

25.

National Pensions Awareness Campaign 2004

Media Coverage

Extensive national and local press coverage in key titles

26.

National Pensions Awareness Campaign 2004

Media Activity 2004

Display Adverts in 40 Regional Press Titles

27.

Some Conclusions

• Essential that pension consumers are aware of their rights under pensions legislation

• Consumers should be encouraged to monitor financial soundness of their pension arrangements be aware of level and range of their own benefit entitlements

• Information must be clear, simple and easily accessible

• Provision of clear authoritative guidance for pension practitioners promotes security for consumers

• Media can play an essential role in communicating ‘pensions message’ to all groups

• Regulator should be ‘champion’ and protector of consumer interests