A general dissatisfaction with the Governments handling of the pension crisis was the underlying theme which dominated results of a survey carried by IFG Corporate Pensions at a pension breakfast seminar held by the pensions company recently. The survey was completed by Managing Directors, Finance Directors and HR Directors nationwide, which was designed to address the huge challenges facing employee pension schemes.
The survey, which looked at attendees attitudes to several aspects of the National Pensions Framework, demonstrated people’s dissatisfaction with a variety of elements of the Framework and overall their lack of confidence in the Government’s approach.
Fionan O Sullivan, director with IFG Corporate Pensions commented, “We weren’t overly surprised that the results reflected our own views that the Government have done little but reduce incentives to provide for retirement. The plan lacks real innovation and the Government has missed a great opportunity to incentivise people to make appropriate provision for retirement. Over half respondents (55.6%) felt that the framework developments will not have positive implications for the Irish economy and while some people were as yet undecided only a fifth (22.2%) felt that it would”.
However, many of the respondents were in agreement about two of the more promising developments of the framework – the auto enrolment initiative and the opening up of access to ARFs, with over 90% of respondents believing that these were a step in the right direction.
Fionan continued, “While it is difficult to be overly enthused by the Government’s proposed plans, we must now focus on the positive elements as expressed by respondents and ensure that both employers and employees are aware of the direct impact these changes will have on them and their retirement planning options”.
Other results from the survey include:
- 55.6% felt that the timing of the NPF was appropriate, however 33.3% disagreed - Just under half said the NPF will not have positive implications for pension holders, while only 18.5% think it will - 44.4% believe that the proposed changes to the national retirement age will have positive implications for the economy, however 29.6% disagree - A majority of 81.5% agree with changes to the public sector pension payment - Over half of respondents feel that the Government have been somewhat ineffective in addressing the pension crisis – 51.9%
Fionan concluded, “It is fair to say that there has been a mixed reaction to the framework, but nevertheless it is reassuring that some of the key critical industry issues are being address. There is an urgent requirement for further transparency across the entire industry and it is promising to see evidence that the framework will works towards achieving this.
Implementation of the policies set forward in the National Pensions Framework will require significant work going forward, especially the new proposals for dealing with DB schemes. The proposed milestones however must proceed in a timely manner, given the current and pressing difficulties faced by pension schemes, contributing employers and most importantly scheme members looking towards retirement”.