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‘‘Rural, Island & Dispensing Rural, Island & Dispensing Doctors of IrelandDoctors of Ireland
2828thth Annual Conference Annual Conference55thth October 2013 October 2013
‘Pension Issues’‘Pension Issues’
Dr. Anthony LundonDr. Anthony Lundon
Chairman Trustee GMS Superannuation Chairman Trustee GMS Superannuation FundFund
TrusteesTrustees Dr. Anthony Lundon Dr. Anthony Lundon - Galway- Galway Dr. Eugene Swaine Dr. Eugene Swaine - Dublin- Dublin Dr. Jim Molloy Dr. Jim Molloy - Limerick- Limerick Dr. Philip Murray Dr. Philip Murray - Sligo- Sligo Dr. Niall Walsh Dr. Niall Walsh - Longford- Longford Dr. Martin Healy Dr. Martin Healy - Cork- Cork Dr. Fergus Macnamara Dr. Fergus Macnamara - Waterford- Waterford Dr. Damian RutledgeDr. Damian Rutledge - Dublin- Dublin Dr. Larry Mc McEntee Dr. Larry Mc McEntee - Meath- Meath Dr. Michael KelleherDr. Michael Kelleher - - I.M.O. GPI.M.O. GP Comm Trustee Comm Trustee Corporate TrusteeCorporate Trustee
Administrators – MercerAdministrators – Mercer
Corporate Trustee – Irish Pensions Corporate Trustee – Irish Pensions TrustTrust
PensionsPensionsWhat?What?Types:Types:
- - DB (Defined Benefit) SchemesDB (Defined Benefit) Schemes- DC (Defined Contribution) - DC (Defined Contribution)
SchemesSchemes
PensionsPensions PrivatePrivate GMSGMS AVC’sAVC’s Salary + GMSSalary + GMS Old Age Pension/OtherOld Age Pension/Other
GMS Superannuation GMS Superannuation FundFund
1988/9 – Pensions Negotiated & 1988/9 – Pensions Negotiated & CapitationCapitation
- HistoryHistory- IdealsIdeals- BenefitsBenefits
GMS Superannuation GMS Superannuation FundFund
Benefits:Benefits: 1. Pension – GP & 1. Pension – GP & SpouseSpouse
2. Illness Benefit2. Illness Benefit
3. Death in Service Benefit3. Death in Service Benefit
GMS Superannuation GMS Superannuation FundFund
PensionPension: “Options on retirement”: “Options on retirement”
- Dr: Cash lump sum & - Dr: Cash lump sum & pension or pension only. pension or pension only.
(note revenue limits)(note revenue limits)
- Dr only Vs Dr & Spouse- Dr only Vs Dr & Spouse
GMS Superannuation GMS Superannuation FundFund
- GP’s - Fund Value- GP’s - Fund Value - Contributions & Bonuses- Contributions & Bonuses
- Bonus: +/-- Bonus: +/-
- 2012 bonus 6.9%- 2012 bonus 6.9%
AVCsAVCsAdditional Voluntary Additional Voluntary
ContributionsContributions WhatWhat HowHow WhenWhen Tax efficiencyTax efficiency
GMS Superannuation GMS Superannuation FundFund
AVCsAVCsSpecified percentage – Specified percentage – Aged under 30 – Aged under 30 –
15%15%
Aged 30 to 39 – 20%Aged 30 to 39 – 20%
Aged 40 to 49 – 25%Aged 40 to 49 – 25%
Aged 50 to 54 – 30%Aged 50 to 54 – 30%
Aged 55 to 59 – 35%Aged 55 to 59 – 35%
Aged 60 or over – Aged 60 or over – 40%40%
GMS Superannuation GMS Superannuation FundFund
Release of bonuses: +/-Release of bonuses: +/-
- Active members- Active members
- Retired members- Retired membersFour year smoothing Four year smoothing systemsystem
GMS Superannuation GMS Superannuation FundFund
Effect of Pensions Effect of Pensions LevyLevy
Options within funds Options within funds close to retirementclose to retirement
GMS Superannuation GMS Superannuation FundFund
- - Your pension: Your pension:
GMS fund Vs Insurance IndustryGMS fund Vs Insurance Industry
E.G. E.G. Fund of €500,000 as of 31/12/12Fund of €500,000 as of 31/12/12
Report on Pension ChargesReport on Pension Charges
Publication announced on 23/10/12 Publication announced on 23/10/12
by Joan Burton,by Joan Burton,
Minister for Social ProtectionMinister for Social Protection
Individual pension charges expensiveIndividual pension charges expensive
- Loss of up to 30%- Loss of up to 30% Occupational : Loss of up to 15%Occupational : Loss of up to 15%
GMS Superannuation GMS Superannuation FundFund
31/12/12 - Fund of €500,000. 31/12/12 - Fund of €500,000.
GP 65 yrs & 2/3 Spouses GP 65 yrs & 2/3 Spouses pensionpension
Pension PAPension PA IncreasesIncreases
GMS planGMS plan €€25,50025,500 If fund can If fund can afford itafford it
Insurance Insurance companycompany
€€21,50021,500 NoneNone
Insurance Insurance companycompany
€€15,00015,000 Pension Pension increases with increases with inflation (CPI)inflation (CPI)
GMS Superannuation GMS Superannuation FundFund
31/12/12 - Fund of €500,000. 31/12/12 - Fund of €500,000.
GP 70 yrs & 2/3 Spouses GP 70 yrs & 2/3 Spouses pensionpension
Pension PAPension PA IncreasesIncreases
GMS planGMS plan €€29,00029,000 If fund can If fund can afford itafford it
Insurance Insurance companycompany
€€25,00025,000 NoneNone
Insurance Insurance companycompany
€€17,00017,000 Pension Pension increases with increases with inflation (CPI)inflation (CPI)
GMS Superannuation FundGMS Superannuation FundPerformance UpdatePerformance Update
YearYear Actual Actual Fund Fund
ReturnReturn
Declared Declared ReturnReturn
Pension Pension IncreasesIncreases
CPICPI
20072007 -1.9%-1.9% 13.7%13.7% 6.7%6.7% 4.9%4.9%
20082008 -32%-32% -8.0%-8.0% 0.0%0.0% 4.1%4.1%
20092009 20.0%20.0% -5.5%-5.5% 0.0%0.0% -4.5%-4.5%
20102010 5.1%5.1% -5.2%-5.2% 0.0%0.0% -1.0%-1.0%
20112011 -4.5%-4.5% -9.4%-9.4% 0.0%0.0% 2.6%2.6%
20122012 +12.2+12.2%%
6.9%6.9% 0.0%0.0% 1.7%1.7%
2013(YTD2013(YTD))
+7.9%+7.9%
GMS Superannuation GMS Superannuation FundFund
2011: Marks end of negative 2011: Marks end of negative bonusesbonuses
2012: Fund now fully funded &2012: Fund now fully funded &
positive outlook for future.positive outlook for future.
- Markets vary- Markets vary
- Investment Strategy - Investment Strategy diversifieddiversified
GMS Superannuation GMS Superannuation FundFund
Pension ProtectionPension Protection
- Premium Waiver Scheme- Premium Waiver Scheme
Permanent Health InsurancePermanent Health Insurance
Politics and PensionsPolitics and Pensions
- New limits re pensions – 01/01/14- New limits re pensions – 01/01/14
Fund value ? / €60,000 per annumFund value ? / €60,000 per annum
Excluding OAPExcluding OAP
Note: 30% of AVCs may be Note: 30% of AVCs may be withdrawn withdrawn
before 27/03/16before 27/03/16
GMS Superannuation GMS Superannuation FundFund
PensionsPensions - The Future- The Future
- New GMS - New GMS ContractContract
- ARF’s & GMS - ARF’s & GMS Superannuation Superannuation
FundFund
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