Biennial Conference 12 April 2013 An update from the Regulator Tom Dunphy Head of Enforcement The Pensions Board Agenda The Pensions Board Regulatory approach and intent The Registered Administrator regime ID: 656283
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Association of Pension Trustees of IrelandBiennial Conference 12 April 2013
An update from the Regulator
Tom Dunphy
Head of Enforcement
The Pensions BoardSlide2
AgendaThe Pensions BoardRegulatory approach and intentThe Registered Administrator regimeTrusteeship and support for scheme trusteesSlide3
Numbers in Irish private pensions (as at 31 December 2012) Total schemes – 61,054 schemes with 754,236 members Defined benefit – 862 defined benefit schemes with 521,297 members
Defined contribution
- 60,192 schemes with 232,939 members
Personal Retirement Savings Accounts (PRSAs)
– 207,000 contracts
Assets under investment OPS €75bn and PRSAs €3.45bn
DB Schemes 1.5% Members 69%
DC Schemes 98.5% Members 31%Slide4
The Pensions BoardEstablished by the Pensions Act, 1990 Slide5
Pensions Board PowersPowers under the Pensions ActObtain informationInvestigateFine and direct remedial actionProsecuteSeek an order from the High CourtSuspend or withdraw approval for certain activitiesSlide6
The Board’s Regulatory ApproachGeneral approach to regulation – intent and methodologyRegulatory IntentRegulatory goalWhat we expect of trusteesWhat trustees can expect of the RegulatorStatement of Regulatory IntentRegulatory methodologyReactive and proactive supervisionRisk based supervision. Slide7
Regulatory Risk PrioritiesThe Board’s allocation of resources is risk oriented on the basis of the following priorities:1st priority misappropriation of pension assets or contributions2nd priority failure to pay benefits due3rd priority inadequate funding of defined benefits4th priority inappropriate investment5th priority failure to provide prescribed information to membersThis order represents the seriousness of the risks, not the likelihood of their occurrence. Slide8
Engagement and Enforcement Activity - 2012Prosecutions Proceedings concluded in respect of 20 schemes with 15 convictions and 5 withdrawn. Most were cases of non-remittance of contributions. On-the-spot fines Fines notices amounting to €66,000 issued to 17 trustees of 6 schemes for multiple breaches of the Pensions Act. Meetings with scheme trustees The Board convened meetings with 52 individual schemes to discuss their compliance status with the Pensions Act.Registered Administrator on-site inspections The Board carried out 28 on-site inspections of RAs in 2012 covering a broad spectrum of RAs based on their type and size of business.Scheme investigations Investigations ongoing with 70 cases currently open.Slide9
Registered AdministratorsFrom 1 November 2008 trustees must appoint an RA to carry out certain functionsCore administration functions are:preparation of scheme annual reportpreparation of member benefit statements.......and maintenance of sufficient and accurate member records to discharge these functions
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RA Inspections 2012 – General Findings28 inspections in 201224 satisfactory4 unsatisfactoryRemedial action plans put in placeOverall satisfaction with process Contributing to higher standards of scheme administration and complianceSlide11
RA on-site inspections processWhat if I’m selected?What is expected of RA? Letter outlining process Adequate notice PB team will visit your offices Review sample scheme records. Report issues after inspection Matters
requiring attention discussed and a plan put in place
Failure to perform the core functions could result in more serious action
MBS and TAR issued on time
Disclosure requirements addressed
Demonstrate proper procedures and controls
scheme documentation held safely and securelySlide12
Main duties of Trustees under the Pensions Act Manage the scheme in accordance with the trust deed register the schemeensure contributions are receivedinvest the funds and pay the benefitsensure that the funding standard is metkeep records and accounts preserve or transfer benefitsensure equal treatment disclose information as required Slide13
Supporting TrusteesThe Board supports trustees in the following ways:the Trustee Handbookan extensive range of guidance and FAQsbooklets and checklists for trusteesinformation and enquiry servicea register of trustee training providersfree e-learning facility for trusteesSlide14
Summary and takeawayThe Pensions BoardRegulatory approachThe Registered Administrator regimeTrusteeship and supporting scheme trusteesSlide15
and to finish….. Thank you for your time and attention. Slide16
Questions & Answers