Association of Pension Trustees of Ireland 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 Trusteeship and support for scheme trustees

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%

The Pensions Board Established by the Pensions Act, 1990 Supervision, regulation and enforcement Policy advice and research Information and guidance

Pensions Board Powers Powers under the Pensions Act –Obtain information –Investigate –Fine and direct remedial action –Prosecute –Seek an order from the High Court –Suspend or withdraw approval for certain activities

The Board’s Regulatory Approach General approach to regulation – intent and methodology Regulatory Intent Regulatory goal What we expect of trustees What trustees can expect of the Regulator Statement of Regulatory Intent Regulatory methodology Reactive and proactive supervision Risk based supervision.

Regulatory Risk Priorities The Board’s allocation of resources is risk oriented on the basis of the following priorities: 1 st priority misappropriation of pension assets or contributions 2 nd priority failure to pay benefits due 3 rd priority inadequate funding of defined benefits 4 th priority inappropriate investment 5 th priority failure to provide prescribed information to members This order represents the seriousness of the risks, not the likelihood of their occurrence.

Engagement and Enforcement Activity Prosecutions Proceedings concluded in respect of 20 schemes with 15 convictions and 5 withdrawn.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.

Registered Administrators  From 1 November 2008 trustees must appoint an RA to carry out certain functions  Core administration functions are: -preparation of scheme annual report -preparation of member benefit statements and maintenance of sufficient and accurate member records to discharge these functions

RA Inspections 2012 – General Findings 28 inspections in 2012 –24 satisfactory –4 unsatisfactory –Remedial action plans put in place Overall satisfaction with process Contributing to higher standards of scheme administration and compliance

RA on-site inspections process What 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 securely

Main duties of Trustees under the Pensions Act Manage the scheme in accordance with the trust deed register the scheme ensure contributions are received invest the funds and pay the benefits ensure that the funding standard is met keep records and accounts preserve or transfer benefits ensure equal treatment disclose information as required

Supporting Trustees The Board supports trustees in the following ways:  the Trustee Handbook  an extensive range of guidance and FAQs  booklets and checklists for trustees  information and enquiry service  a register of trustee training providers  free e-learning facility for trustees

Summary and takeaway The Pensions Board Regulatory approach The Registered Administrator regime Trusteeship and supporting scheme trustees

and to finish….. Thank you for your time and attention.

Questions & Answers