Irish Pensions Magazine Spring 2015
4
News
T
he current levels of interest rates and the commencement of Quantitative
Easing by the ECB have caused a lot of concerns for pension schemes.
Despite the high investment returns achieved over the last few years, there
is a strong likelihood that DB funding proposals will go off track driven by
the incredibly low and unprecedented interest rate environment we are
experiencing.
The risk reserve requirements also come into force next year and it continues
to be disappointing that the list of assets which may be taken into account
still does not include swaps and other derivative instruments held by schemes
to reduce risk as part of a liability driven investment strategy.
We know our members with DB Plans need help to get through this period
and with this in mind, we have already met with the Pensions Authority to discuss what measures may
be taken to ease this burden.
This is not to say that defined benefit schemes do not have to re-evaluate their promises, or should not
seek to reduce risk. But it seems unfair that we have such a significant short term focus on private sector
schemes, while we have no rigour in measuring and remediating for the liability of the unfunded public
sector and state scheme which is far greater – as always this continues to be the elephant in the room
but one which we are acutely aware of.
This is also an issue for DC members when purchasing annuities and there is also a need for trustees to
consider the investment options available to members.
We welcome the recent establishment of the Universal Retirement Savings Group to look to both inside
and outside of Ireland to create a vision for retirement provision here, we must be sure that they are
clear on the objective and have considered a broad enough set of options before decisions are made –
and the IAPFs voice must be heard on behalf of our members at that table as our contribution to that
discussion will be immeasurable.
As I approach the end of my time as Chairperson, I would like to firstly thank the Council for having
confidence in me and electing me into the position. It has been great challenge and a wonderful
learning experience. My special thanks goes to the silent heroes in the office of the IAPF without whom
it would be impossible to fulfil this role. In particular to the CEO, Jerry Moriarty, who works tirelessly
to make the Chairpersons’ role operate as smoothly as possible. My thanks also goes to our Treasurer,
Alan Bigley, and our Secretary, Peter Fahy and all the other Committee and Council members for their
support and counsel. I have thoroughly enjoyed my term and as I leave the role, I am delighted that
Jim Foley will be taking up the mantle as Chairperson.
The IAPF is a voluntary association with many men and women giving of their time and expertise to
ensure that we drive the agenda towards secure fair and simple pension provision in Ireland. We still
have much work to do, but we are at least on the right road and facing the right direction!
It has been my privilege to lead the Association. Thank you.
Rachael Ingle
Chairperson
Chairperson’s Message
