1. INSTITUTE OF EUROPEAN AFFAIRS
IRISH PENSION REFORM
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ANNE MAHER
Chief Executive 21 April 2004
The Pensions Board

2. IRISH PENSION REFORM
through National Pensions Policy Initiative (NPPI)
finalised by Pensions Board “Securing Retirement Income” Report to Minister
contained 97 recommendations
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3. MAIN COMPONENTS
increase in State Pension to 34% Average Industrial Earnings (AIE) to avoid poverty and provide replacement income for lower paid
establishment of fund to partially fund future increases in State pension
large range of changes in voluntary private pension system and in particular introduction of
new flexible pensions vehicle called Personal Retirement Savings Accounts (PRSAs)
mandatory employer access to PRSAs
review after 3 years

4. IMPLEMENTED BY National Pensions Reserve Fund Act 2000
Pensions (Amendment) Act 2002

5. PROGRESS
State pension steadily increasing (now 30 – 31% AIE approximately)
National Pensions Reserve Fund up and running but with difficult investment environment
Almost all recommended changes made to private system including
PRSAs available since Spring 2003 with slow but steady progress
Mandatory employer access in place for 59,000 employers but some still non-compliant

6. SOME ISSUES continuing complexity in system
public confidence weakened by equity market problem
slow PRSA progress
excessive regulation?
not as simple as planned
need for full employer co-operation
need for incentive or some form of boost?
National Pensions Reserve Fund
lack of public ‘ownership’
need to keep to clear investment mandate

7. IN CONCLUSION Ireland has Irish model is clear agreed plan
reasonable certainty
support of Partnership
less complexity than most
reasonable public trust
Irish model is
well thought of overseas
good base for Pan-European opportunities