OECD EXPERT MEETING ON PENSIONS AND INSURANCE IN THE BALTIC COUNTRIES Mary Hutch Head of Information & Training The Pensions BoardRiga, Latvia Ireland5 October 2004 ROLE OF REGULATOR IN PROVISION OF FINANCIAL INFORMATION AND EDUCATION

1. Agenda Some Facts on Irish Pensions The Pensions Board Pensions Development / Information / Awareness  Information Services  Guidance Services  Trustee Support Services Promulgating the Pensions Message National Pensions Awareness Campaign 2003/2004 Some Conclusions

2. SOME FACTS ON IRISH PENSIONS Social Welfare (First Pillar) provides universal basic Flat Rate pension amounting to € 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)

3. 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

4. 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

5. 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

6. Pensions Development / Information / Awareness Annual Enquiries

7. 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

8. 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

9. 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

10. National Pensions Awareness Campaign 2003

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

12. National Pensions Awareness Campaign 2003 All the actions within the Campaign are designed to be sharp calls to action. Using our Tag Line Think 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.

13. 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 Association National Library Network Rural Leader Groups Area Partnership Companies Irish Hotels Federation Licensed Vintners Association Restaurants Association of Ireland

14. National Pensions Awareness Campaign 2004

15. National Pensions Awareness Campaign 2004 The Pensions Calculator

16. National Pensions Awareness Campaign 2004 “Pensions Checklist”

17. National Pensions Awareness Campaign 2004 The Pensions Calculator

18. National Pensions Awareness Campaign 2004 On Street Public Promotion 100,000 Pension Calculators Giveaway

19. National Pensions Awareness Campaign 2004 Promotions Activity A2 Bus Posters on 500 Dublin Buses

20. National Pensions Awareness Campaign 2004 Promotions Activity A2 Posters in Offices, Libraries, Public Information Centres, GAA, Rugby, Soccer and Sports Clubs throughout the country

21. National Pensions Awareness Campaign 2004 Promotions Activity – 19 September Sheet Billboard Admobiles travelling nationwide for National Pensions Awareness Week

22. National Pensions Awareness Campaign 2004 Promotions Activity 2004 On-Line Banner Advertising

23. National Pensions Awareness Campaign 2004 Promotions Activity ,000 Women & Pensions booklets distributed at the Mini Marathon

24. National Pensions Awareness Campaign 2004 Media Coverage Extensive national and local press coverage in key titles

25. National Pensions Awareness Campaign 2004 Media Activity 2004 Display Adverts in 40 Regional Press Titles

26. 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