‘Rural, Island & Dispensing Doctors of Ireland 28 th Annual Conference 5 th October 2013 ‘Pension Issues’ Dr. Anthony Lundon Chairman Trustee GMS Superannuation Fund

Trustees Dr. Anthony Lundon - Galway Dr. Anthony Lundon - Galway Dr. Eugene Swaine - Dublin Dr. Eugene Swaine - Dublin Dr. Jim Molloy - Limerick Dr. Jim Molloy - Limerick Dr. Philip Murray - Sligo Dr. Philip Murray - Sligo Dr. Niall Walsh - Longford Dr. Niall Walsh - Longford Dr. Martin Healy - Cork Dr. Martin Healy - Cork Dr. Fergus Macnamara - Waterford Dr. Fergus Macnamara - Waterford Dr. Damian Rutledge- Dublin Dr. Damian Rutledge- Dublin Dr. Larry Mc McEntee - Meath Dr. Larry Mc McEntee - Meath Dr. Michael Kelleher- I.M.O. GP Dr. Michael Kelleher- I.M.O. GP Comm Trustee Comm Trustee Corporate Trustee Corporate Trustee

Administrators – Mercer Corporate Trustee – Irish Pensions Trust

Pensions What?Types: - DB (Defined Benefit) Schemes - DC (Defined Contribution) Schemes

Pensions Private Private GMS GMS AVC’s AVC’s Salary + GMS Salary + GMS Old Age Pension/Other Old Age Pension/Other

GMS Superannuation Fund 1988/9 – Pensions Negotiated & Capitation - History - Ideals - Benefits

GMS Superannuation Fund Benefits: 1. Pension – GP & Spouse 2. Illness Benefit 2. Illness Benefit 3. Death in Service Benefit 3. Death in Service Benefit

GMS Superannuation Fund Pension: “Options on retirement” - Dr: Cash lump sum & pension or pension only. (note revenue limits) - Dr only Vs Dr & Spouse

GMS Superannuation Fund - GP’s - Fund Value - GP’s - Fund Value - Contributions & Bonuses - Contributions & Bonuses - Bonus: +/- - Bonus: +/ bonus 6.9% bonus 6.9%

AVCs Additional Voluntary Contributions What What How How When When Tax efficiency Tax efficiency

GMS Superannuation Fund AVCs Specified percentage – Aged under 30 – 15% Aged 30 to 39 – 20% Aged 30 to 39 – 20% Aged 40 to 49 – 25% Aged 40 to 49 – 25% Aged 50 to 54 – 30% Aged 50 to 54 – 30% Aged 55 to 59 – 35% Aged 55 to 59 – 35% Aged 60 or over – 40% Aged 60 or over – 40%

GMS Superannuation Fund Release of bonuses: +/- Release of bonuses: +/- - Active members - Retired members Four year smoothing system Four year smoothing system

GMS Superannuation Fund Effect of Pensions Levy Effect of Pensions Levy Options within funds close to retirement Options within funds close to retirement

GMS Superannuation Fund - Your pension: GMS fund Vs Insurance Industry GMS fund Vs Insurance Industry E.G. Fund of €500,000 as of 31/12/12

Report on Pension Charges Publication announced on 23/10/12 by Joan Burton, by Joan Burton, Minister for Social Protection  Individual pension charges expensive - Loss of up to 30% - Loss of up to 30%  Occupational : Loss of up to 15%

GMS Superannuation Fund 31/12/12 - Fund of €500, /12/12 - Fund of €500,000. GP 65 yrs & 2/3 Spouses pension GP 65 yrs & 2/3 Spouses pension Pension PA Increases GMS plan €25,500 If fund can afford it Insurance company €21,500None €15,000 Pension increases with inflation (CPI)

GMS Superannuation Fund 31/12/12 - Fund of €500,000. GP 70 yrs & 2/3 Spouses pension GP 70 yrs & 2/3 Spouses pension Pension PA Increases GMS plan €29,000 If fund can afford it Insurance company €25,000None €17,000 Pension increases with inflation (CPI)

GMS Superannuation Fund Performance Update Year Actual Fund Return Declared Return Pension Increases CPI %13.7%6.7%4.9% %-8.0%0.0%4.1% %-5.5%0.0%-4.5% %-5.2%0.0%-1.0% %-9.4%0.0%2.6% %6.9%0.0%1.7% 2013(YTD)+7.9%

GMS Superannuation Fund 2011: Marks end of negative bonuses 2011: Marks end of negative bonuses 2012: Fund now fully funded & 2012: Fund now fully funded & positive outlook for future. positive outlook for future. - Markets vary - Markets vary - Investment Strategy diversified - Investment Strategy diversified

GMS Superannuation Fund Pension Protection Pension Protection - Premium Waiver Scheme - Premium Waiver Scheme Permanent Health Insurance Permanent Health Insurance

Politics and Pensions - New limits re pensions – 01/01/14 - New limits re pensions – 01/01/14 Fund value ? / €60,000 per annum Fund value ? / €60,000 per annum Excluding OAP Excluding OAP Note: 30% of AVCs may be withdrawn Note: 30% of AVCs may be withdrawn before 27/03/16 before 27/03/16

GMS Superannuation Fund Pensions- The Future - New GMS Contract - ARF’s & GMS Superannuation Fund