Pressure mounts on pension funding

PRESSURE is continuing to mount on pension funding as new statistics show life expectancy has risen sharply.

Central Statistics Office figures show that life expectancy at 65 is 15.4 years for males and 18.7 years for females - reflecting an 11% increase for males over the last six years.

In 2003 the board implemented provisions of the Social Welfare Act 2003 facilitating the return to full funding by pension schemes affected by the downturn in invested markets. The National Pensions Awareness Campaign 2003 heightened pensions awareness with the Pensions Board logging 7,713 inquiries with a 44% increase on 2002, according to the report presented to the Minister for Social and Family Affairs, Mary Coughlan.

Pensions Board chief executive Anne Maher said: "While 2003 was a difficult environment for pensions, we believe that the annual report of the Pensions Board shows that the pension system which has been put in place has shown itself to be robust during these challenging times."

Presenting Ms Coughlan with the 2003 annual report, chairman Michael McNulty said: "During 2003, the board implemented the new provisions of the Social Welfare Act, 2003, which facilitated the return to full funding by pension schemes affected by the downturn in invested markets over the proceeding three years.

"We are pleased that this facility for extension appears to be working well and that a substantial number of schemes have now put in place."

Commenting on Personal Retirement Savings Accounts (PRSAs) at the launch, Ms Maher said there are 56 products available from a choice of 10 PRSA providers. These give the consumer a wide range of choice and ensures a competitive market.

While sales to date have been steady, further initiatives may be considered to encourage a better uptake, she said.

At the end of March 2004, 26,899 PRSA contracts had been taken out with total assets of overe60 million.

The National Pensions Awareness Campaign starts on September 13 to help get the PRSA message into the market place.

In 2003, 52 "whistleblow" reports were received and a further 14 have been received to date this year.