Maybe it's one of those prize promotions - guess the number of coins in the jar and win the CEOship of NAERSA?
Government confirms delay of pension auto-enrolment
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Duke of Marmalade
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Actually all that the investment managers are being asked to do is to accept NAERSA as a unitholder. So €7m a year looks like money for old rope. As @Colm Fagan explains in #38 this is only a tiny part of the overhead costs of NAERSA.
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johnwilliams
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a poster above mentioned if things go pear shaped
so would happen then to peoples contributions .does the government cover it ? especially if it happens just as you retire?
so would happen then to peoples contributions .does the government cover it ? especially if it happens just as you retire?
Dr Strangelove
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Things can’t go pear shaped unless there is embezzlement which is highly unlikely.
If there are negative returns over a long period there may be political pressure on government to subvent retirees’ funds.
There's nothing to cover. People's contributions were spent years before to buy assets. When they come to draw down, the assets are sold and they get whatever the net proceeds are.
Dr Strangelove
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NAERSA is recruiting senior managers now.
Head of Compliance and Reviews (Principal Officer), National Automatic Enrolment Retirement Savings Authority (NAERSA) |
Employer: Department of Social Protection |
Head of Corporate Services (Principal Officer), National Automatic Enrolment Retirement Savings Authority (NAERSA) |
Employer: National Automatic Enrolment Retirement Savings Authority |
Minister Calleary launches major national campaign to raise awareness of ‘My Future Fund’ - the new Auto Enrolment Retirement Savings System
The multimedia advertising campaign will further inform people about how the new system will work, who can participate, and what it will mean for them
www.gov.ie
There was previous embezzlement from private pension funds (dressed up as a levy). Units were directly removed from the people's pension policies.
The excuse for this was that the State was in an emergency financial situation.
In more recent years when the State has been in a situation of having bumper tax revenue, no attempt has been made to return the embezzled units.
If (or when) the State again goes into financial crisis, it is highly likely that the Auto enrollment funds will be raided.
Something about the name "My Future Fund" doesn't make it seem like it won't be raided. On fact, I'd imagine the administrators will get constant communications.from members along to get their fund well before retirement.
When the government sees pensions as a rainy day fund, members can't be blamed if they follow the bad example.
Dr Strangelove
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This is a nonsensical description. It was a tax passed by a majority in the Oireachtas like every other tax. I was a public servant at the time and had my pay cut three times again approved by the Oireachtas.
Much more likely that the state will pause its contribution.
Private sector workers also suffered pay cuts, or worse.
Their occupational pensions have also suffered reductions up to the present day, as a result of goverment embezzlement, at a time when most pension funds were already in financial difficulties.
Precidance has been set and future governments will dip into pension funds again when they tank the economy.
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Not likely.
Because they would not get an immediate and very large injection of cash, and contributors could react by ceasing contributions until the government contributions were restored.
Dr Strangelove
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Very few did as by law it’s impossible to cut a private sector worker’s nominal pay without their consent.
Six of one or half a dozen of another. Several EU member states paused government contributions to pension schemes c. 2009-2012. In Ireland the levy on pension assets never amounted to more than 1% of tax revenue in any year.
Of course but inertia is very powerful with pensions and employer contributions would still exist.
When you are told, to avoid redundancy, you can agree to a voluntary 20 per cent pay cut, people do consent (my husband's case as all his coworkers). At the end, there were both redundancies and pay cuts.
Dave Vanian
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Was your pay subsequently restored when times were better? The Pensions Levy was never refunded.
On what basis do you claim that this would be "much more likely"? Only the Minister of the time can know that.
The template is there for the Pensions Levy. It's been done already so the procedure for implementing it is already there.
The Pensions Levy was and remains a terrible way of raising funds. I wonder would people have been more strongly opposed to it if it had been applied to bank accounts instead of pension funds. "Times are hard so we've decided to dip into every citizen's bank account and take out a few euro from each - a percentage of what all of you have in your bank accounts."
Many large employers did exactly this.
It's very easy for an, at the time, protected state employee to quote the law.
It's another story entirely for an unprotected private sector worker to fight a case to retrieve illegal deductions from their wages.
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Dr Strangelove
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No. It was converted to something called the Additional Superannuation Contribution in 2017.
Because I understand public policy formation a lot better than you do.
No they didn’t as large employers know the law better than small ones. They cut overtime, bonuses, and everything above basic pay. And of course they made redundancies. Direct pay cuts for sure happened in isolated cases but they were rare.
You can search the CSO numbers very hard for evidence of widespread private sector pay cuts 2008-2011 but you won’t find any.