1. APLI/IPEBLA Conference
Governance of Cross-Border Pension Schemes –
The Irish Regulator’s Perspective
Anne Maher, Chief Executive
and
Brendan Kennedy, Actuarial Adviser
The Pensions Board
2 June, 2006

2. Agenda Background to cross-border governance
Irish cross-border governance
Ireland as cross-border pensions location (and regulator) 2

3. Background Instruments
EU Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision (“IORPs Directive”)
Implementation of IORPs Directive into national law
Protocol relating to Collaboration of Relevant Competent Authorities 3

4. Background Irish Implementation
Social Welfare and Pensions Act, 2005 inserts Part XII of the Pensions Act, 1990 (as amended)
Occupational Pension Schemes (Cross-Border) Regulations, 2006 covers:
Authorisation
Notification
Social and Labour Law
‘Minimalist’ implementation 4

5. Cross-Border Governance
Irish Social and Labour Law
Part III of Pensions Act
Preservation provisions and minimum value of contributory retirement benefits
Part V of Pensions Act
Disclosure of information requirements
Section 59B
Prohibition on reducing pension payable
Section 59C
Protects pensions in payment which are integrated with State pension 5

6. Cross Border Governance
Funding Requirements
Fully funded at time of application
Managed for full funding
Underfunded schemes – Board approval
Pensions Board guidelines
EU Commission clarification 6

7. Cross Border Governance
Practical Requirements
New schemes:
Registration / authorisation
Notification
Waiting period
Existing schemes:
Authorisation / notification 7

8. Ireland as Pensions Location
Tax arrangements
Irish law incorporates cross border tax reliefs
Investment Opportunities
Common Contractual Fund (CCF)
Pension tradition/services available
Ireland has long established private pension structure
Availability of tried and tested pension skills/resources
Investment, Actuarial, Accounting, Legal, Benefit consulting, Benefit administration, Compliance skills available in Ireland
Regulatory/compliance regime
Acceptable and balanced regulation by open and accessible regulators/supervisors in Ireland
Ability to accommodate countries outside EU
Global services available in Ireland 8

9. Ireland as Pensions Location
Pan-European Pensions Task Force
Examining opportunities in international pensions area
Will facilitate initiatives/changes
Suite of asset pooling vehicles
Unit Trust (Fixed Income Investments)
Limited Partnership
UCITS CCF (Equities Investments)
Non-UCITS CCF (Alternative Investments) 9

10. Ireland as Pensions Location
Irish Regulation
Balance between reasonable cost and member protection
Transparent/open environment
Reasonable level of investment freedom
Acceptable (we hope “respected”!) 10

11. Next Steps Clarification of some Directive requirements
Protocol “working” between Member State pension supervisors
Consideration and decision on location by pension scheme sponsors and commercial providers 11

12. In Conclusion Pensions Directive Full Pan-European Pension Funds
Is first step in single market for pensions
Provides a framework for change
Investment/asset pooling is happening
Liability pooling and centralised administration are next steps
Full Pan-European Pension Funds
Will take time
But WILL come about 12