high level dc 2016 survey results | the data that matters ... condon slides.pdf · high level dc...

Prepared by Aon HewittConsulting | Retirement

High Level DC 2016 Survey Results |

The data that matters to you and your

members.

IAPF DC Conference | 26th May 2016

Martin Condon | Director - Consulting

Aon Hewitt | Retirement & Investment

Aon Hewitt (Ireland) Limited trading as Aon Hewitt is regulated by the Central Bank of Ireland.

Introduction | Profiling the Plans and Participants

135companies

100,000 members

€3.6bn assets

Annual Cashflow €300m

2016



Assets Under Management

€27m€8m

2008 2016



Membership – Compulsory or Voluntary



Coverage



Changes to Normal Retirement Date

86% of plans have 65 as the NRA and 9% use age 60

Almost 60%have not

considered the change in NRA



What Earnings are “Pensioned”



Contribution Rate Structure

200860%

20%



Level or Fixed Rate Contributions

Employer ranges from 2% to 15%, average 7.7%

Employee ranges from 0% to 8%, average 4.7%

20% higher than in 2008

Total Average contribution 12.4%



Death in Service Benefits

85% of participants do not differentiate in the lump sum provided to single and married members

76% pay the value of the DC fund or the vested DC fund in addition

50% of DC Plans also insure a Spouse’s/Adult Dependant’s Pension with 40% of respondents providing a pension of 25% of salary and 25% of respondents providing 33% of salary.

Approx. 10% of participants made changes to the amount of their death benefits over the last 36 months

Almost 30% changed underwriters mainly due to cost considerations



Disability Benefits

– 92% of participants provide disability benefits for employees

– The most common benefit is 67% x Salary with an offset of 1 x single state benefit

– 70% provide increases to disability payments of 3% or CPI (max 3%)

– Approx. 12% of participants made changes to their disability benefit over the last 36 months

– 22% of participants changed underwriters, mainly due to cost considerations



Investment Options



Take Up of Default Option



Range of Default Funds Available

51%in 2008

36%in 2008



Trusteeship



Communication, Education & Support



Communication

MemberBooklet

MemberHelpline

InvestmentUpdate

Website/Intranet

ProjectionTool / Modeller



Governance

Encourage and educate members on retirement savings

Offer a good range of investment options that perform well

Provide a good level of retirement income

High level of member satisfaction

Efficient and well-run plan

95% 95%

100% 95%

93%



Governance



Priorities for next 12 months

Increase the level of member engagement 61%

Improving members’ understanding of their options on retirement 59%

Improving members’ understanding of benefits and risk of the scheme 71%

Reviewing investment strategy 58%

21

Aon Hewitt | Consulting | Retirement5 February 2016




Aon Hewitt (Ireland) Limited trading as Aon Hewitt is regulated by the Central Bank of Ireland.Registered in Ireland No. 356441 | Registered office: Block D | Iveagh Court | Harcourt Road | Dublin 2 | Ireland.

To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the prior written consent of Aon Hewitt (Ireland) Limited.

Aon Hewitt (Ireland) Limited does not accept or assume any responsibility for any consequences arising from any person, other than the intended recipient, using or relying on this material.

Copyright © 2016 Aon Hewitt (Ireland) Limited. All rights reserved.

high level dc 2016 survey results | the data that matters ... condon slides.pdf · high level dc...

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