safeguarding pension rights l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Safeguarding Pension Rights PowerPoint Presentation
Download Presentation
Safeguarding Pension Rights

Loading in 2 Seconds...

play fullscreen
1 / 9

Safeguarding Pension Rights - PowerPoint PPT Presentation


  • 355 Views
  • Uploaded on

Safeguarding Pension Rights Ray Martin Vice-Chairman - EFRP Misconception Safeguarding Pension Right equals transferability of pension rights This is not true, the transfer value of not a lot is not a lot !!! So What do I mean by Safeguarding Immediate Vesting - number one priority

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Safeguarding Pension Rights' - Antony


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
safeguarding pension rights

Safeguarding Pension Rights

Ray Martin

Vice-Chairman - EFRP

misconception
Misconception
  • Safeguarding Pension Right equals transferability of pension rights
  • This is not true, the transfer value of not a lot is not a lot !!!
so what do i mean by safeguarding
So What do I mean by Safeguarding
  • Immediate Vesting - number one priority
  • Protection of consumers from mis-selling and excessive charges
  • Cross border recognition for tax relief
  • Transferability is then the final piece in the protection
why immediate vesting
Why Immediate Vesting
  • Pension rights are part of an employee’s remuneration package and should not be taken away.
  • A small vesting period is tolerable for administrative reasons - up to 2 years
  • Vested benefits then should be protected in real terms against inflation
protection of consumers
Protection of Consumers
  • Closed Funds vs Open Funds
  • Closed Funds are those that are those set up by a single employer, or group of employers, and are controlled by the employer(s) and the employees
  • Open Funds are those that are sold commercially either directly to the employees or through their employer, but the management remains with the provider.
closed funds protection of the consumer
Closed Funds - Protection of the Consumer
  • Based on relationship between employer and employee
  • Member elected Directors / Fiduciaries
  • Minimum Funding Requirement
  • Independent Custody / Management
  • Independent contract with Investment Managers
  • Duty on fiduciaries to act prudently
open funds protection of the consumer
Open Funds - Protection of the Consumer
  • Independent Advice
  • Cooling-off periods
  • Maximum Charges
  • Solvency requirements for products with interest or mortality risks
  • Right to cease contributions
  • Maximum surrender penalties
cross border recognition
Cross - border recognition
  • For a short period, say up to five years, employees should be able to continue contributing to their home plan and receive tax relief equivalent to the host country
  • To be given effect through double taxation treaties, and in Europe at a EU Level.
transferability the final piece of the jigsaw
Transferability - the final piece of the jigsaw
  • More important within country than across border, to ensure employees not tied into one provider
  • Cross border is helpful because, it
    • allows consolidation
    • avoids currency risks for pensioners
    • simplifies tax affairs