IRELAND - The Irish Association of Pension Funds (IAPF) has issued guidance for trustees on how to comply with the organisation's new investment guidelines for defined contribution (DC) schemes.
Elsewhere, the Irish Aviation Authority (IAA) and trade unions are contemplating a labour court recommendation on pay and pensions, while the National Tourism Development Authority has appointed a provider of advice and administration services to its pension scheme.
James Kavanagh, chairman of the IAPF DC committee, said employees are more dependent than ever on the investment performance of their contributions, so it has published specific guidance for trustees, employers, advisers and managers on how to comply with the investment guidelines first set out by the IAPF in April 2008. (See earlier IPE article: Need for IAPF guidelines is 'disappointing)
He warned the changing pensions landscape means it is "vital that all key parties are aware of their responsibilities". He added the updated guidelines and compliance suggestions "are designed to promote higher standards of governance in DC pension fund assets in Ireland".
The voluntary guidelines, which coincide with the new requirements for trustee training from 1 February 2010, recommend trustees: formally discuss investment matters at least annually; take specialist advice on investment matters; comply with relevant investment regulations and offer members a reasonable range of investment options.
Some of the suggestions for compliance with the guidelines are for trustees to have a written agreement with advisers and fund managers stating specific responsibilities and required actions; to monitor the fund choices of members; to consider investment risks such as liquidity and to review default strategies and member communication.
The full compliance guidance can be found on the IAPF website.
The Court became involved in a dispute between the IAA and trade unions, including IMPACT, when the IAA claimed it could not meet the pay increases agreed under the Towards 2016 Review and Transitional Agreement, and planned to defer its payments.
Although IMPACT claimed the IAA was in a "healthy financial position", and an independent assessor appointed by the Labour Relations Commission (LRC) agreed, the aviation firm claimed its financial position had since worsened and that "concession of this claim would lead to an increase in the serious deficit in the Authority's pension scheme".
The matter was referred to the Labour Court in mid-2009, and following a hearing last week it stated it has "taken account of all relevant considerations, including the prevailing economic circumstances and the need for the parties to address the acknowledged problems relating to the Authority's pension fund".
It therefore recommended the pay increases should be paid in two phases starting on 1 January 2011 with retrospective payments to 2009, and "having regard to the current deficit in the pension scheme the Court recommends that the retrospection be paid into the pension fund as a once-off cash injection". Both parties are advised to engage in talks on the state of the pension fund for a maximum of three months.
The latest available figures from the IAA's 2008 annual report showed the combined pension deficit in its two DB schemes had almost tripled to €146.6m at the end of December 2008. (See earlier IPE article: IAA deficit almost trebles in 2008)
Fáilte Ireland, the National Tourism Development Authority, has appointed an adviser and pension administration provider to three pension schemes, following a successful tender process in May 2009.It has appointed Core International to provide integrated pension consultancy and administration services to the National Tourism Development Authority (Fáilte Ireland) Superannuation Scheme; Regional Tourism Authorities Contributory Pension and Death Benefit Scheme and the CERT Contributory Pension and Death Benefit Scheme. (See earlier IPE article: Irish tourism authority seeks pensions admin)
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