the national pensions review
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Pensions Forum 2006. The National Pensions Review. Anne Maher Chief Executive The Pensions Board Dublin Castle 5 May 2006. Agenda. Key Messages Policy Options Recommendations. 2. Key Messages. Significant cost increase for Social Welfare pension Good pension provision costs a lot - PowerPoint PPT PresentationTRANSCRIPT
The National Pensions ReviewThe National Pensions Review
Anne MaherChief Executive
The Pensions BoardDublin Castle5 May 2006
Pensions Forum 2006Pensions Forum 2006
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AgendaAgenda
Key Messages
Policy Options
Recommendations
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3
Key MessagesKey Messages
Significant cost increase for Social Welfare pension
Good pension provision costs a lot
National Pensions Policy Initiative targets broadly accepted
Changes need to be made
Should build on existing good base
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TargetsTargets
50% pre-retirement income replacement
34% GAIE Social Welfare pensions
70% over 30s in workplace with supplementary pension coverage
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Social Welfare Pension Social Welfare Pension Significant increases in Social Welfare pension cost
Projected cost of Social Welfare pension as % of GNP
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2006 2016 2026 2036 2046 2056
3.0% 3.7% 4.9% 6.5% 8.7% 10.1%
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Policy Options – Social Welfare Policy Options – Social Welfare PensionPension
Options to sustain Social Welfare pension module
• Increase retirement age
• PRSI/Taxation increases
• Increase payment to NPRF
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Supplementary PensionSupplementary Pension
58.6% of over 30s in the workforce have supplementary pension coverage
51.5% of the total workforce have supplementary pension coverage
No progress towards adequacy target
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Policy Options – Supplementary Policy Options – Supplementary PensionPension
Enhancements to Voluntary System
Mandatory Pensions
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Policy Options – Supplementary Policy Options – Supplementary PensionPension
Enhancements to Voluntary System
All Board recommended immediate enhancements to current system
All Board believe enhancements would achieve improvements
Some believe enhancements would achieve targets
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Policy Options – Supplementary Policy Options – Supplementary PensionPension
Mandatory Pension Provision
Considered issue in general rather than design system
Could be summarised as an issue of cost versus certainty
Some Board members believe mandatory should be considered urgently
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Recommendations for Immediate Recommendations for Immediate ImplementationImplementation
SSIA style tax delivery for PRSAs plus limited access to funds
Higher rate tax for all personal pension contributors
Reduced Standard PRSA regulation
Incentives on SSIA proceeds
Retirees option to defer Social Welfare pension
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Main Issues Identified for Further Main Issues Identified for Further ConsiderationConsideration
Progress review in 2008 Research on women’s coverage Regular projection of pension costs Automatic enrolment Mandatory pension provision Pensions awareness campaigns State Retirement support Funding Standard for DB Schemes Pension Protection Fund Long Term Care
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Process Process Report
completed February – October 2005
presented to Minister in November 2005
publicly launched in January 2006
laid before each House of Oireachtas as a statutory report
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