1. Pensions and Investing Summit
4th Annual UK and Irish
Pensions and Investing Summit
EU PENSIONS DIRECTIVE:
Practical Implications in the Countdown to Full Implementation
__________________________________________________________________________
ANNE MAHER
Chief Executive
The Pensions Board /19 October 2004
Ireland Dublin

2. Implementation progress Issues to be decided Impact on existing funds
AGENDA
Implementation progress
Issues to be decided
Impact on existing funds
Possible changes for pension industry
Member state competition
Pan-European pension funds?
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3. IMPLEMENTATION PROGRESS
EU Pensions Directive came into force on 23 September 2003 with 2 years to implement
EU member states must implement by 23 September 2005
Ireland aims to legislate in April 2005 through Social Welfare Act, 2005
UK aims to legislate with effect from 6 April 2005
Other member states at various stages of implementation
Difficulties with interpretation of some Directive Articles
Conference of Insurance and Pension Supervisors (CEIOPS) and its Working Group on Occupational Pensions (WGOP) supervising implementation
__________________________________________________________________________

4. IMPLEMENTATION PROGRESS Areas where member states may decide approach
Application to pension business of insurance companies covered by Life Directives
Exclusion of pension scheme with less than 100 members (de minimis rule)
Whether certain contracts (e.g. Irish PRSAs) fall inside or outside scope of Directive
Designation of competent authorities for different provisions
Any requirement for additional national investment provisions to be required for national employees in an IORPs located in another member state
Whether to introduce quantitative investment rules
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5. IMPACT ON EXISTING FUNDS
Changes (and possible increases) in compliance requirements
Single employer/single country plan might consider re-location
Multinational employer might consider
Pooling investments
Pooling services
Merging plans
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6. POSSIBLE CHANGES FOR PENSION INDUSTRY
Consolidation of investment services
Asset Management
Funds Administration
Custody
Consolidation of pension services
Actuarial
Legal
Benefit consulting
Benefit administration
Accounting
Compliance
Increased EU wide competition and pressure on charges
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7. POSSIBLE MEMBER STATE COMPETITION
Benefits to being location of choice
Influences may include
Tax arrangements
Pension tradition/services available/skills/resources
Supervisory regime
Irish activities
Common Contractual Fund (CCF)
Tax transparent equity pooling vehicle
Pan-European Pensions Task Force
Established under Department of Taoiseach
To examine opportunities for Ireland in international
pensions areas with particular regard to EU developments
Will report in next few months
__________________________________________________________________________

8. PAN-EUROPEAN PENSION FUNDS
EFRP model – EIORP 2005
Tax issues still major factor
Seems impractical for Defined Benefit
Potential for Pan-European Defined Contribution Funds
Some multinationals interested
But needs a first player to try…
__________________________________________________________________________

9. Pan-European Pension Funds
IN CONCLUSION
Pensions Directive
Is a first step
Likely to be catalyst for major change
Pan-European Pension Funds
Will take time
But WILL come about
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