PENSIONS INVESTMENTS LIFE INSURANCE EMPLOYER SOLUTIONS PROVIDING RETIREMENT, LIFE COVER AND INCOME PROTECTION BENEFITS

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1 PENSIONS INVESTMENTS LIFE INSURANCE EMPLOYER SOLUTIONS PROVIDING RETIREMENT, LIFE COVER AND INCOME PROTECTION BENEFITS

2 PENSIONS INVESTMENTS LIFE INSURANCE WHAT IS IRISH LIFE? Irish Life will become the DC proposition for Irish Life in the Irish market. Irish Life is about helping the member to understand how much they will need to live on in retirement and to help them take control of their pension saving. We provide lots of ing tools and services to help you and your employees to get the most from your pension scheme. Here are just some of them: Any information, communication, tool/ service that is primarily geared towards pension education for the member. Pension Planet Interactive We make it easy for your employees to take action and stay up to date with their own personal log-on access to Pension Planet Interactive where they can: Amend their pension savings Switch funds online Access important information, benefit statements and more Also available for Trustees and employees. My Pension App My Pension app is the first app of its kind in Ireland.Your employees can check current fund values, estimate values at retirement and much more! It is available to Pension Planet Interactive users. Pension education Our member team provide worksite presentations and individual consultations to employees to help employees get the most from their plan. worksite visits can be arranged in conjunction with your Financial Adviser. Any information or tool/service that is primarily to do with investment/funds for employers and trustees. Fund Centre For instant access to fund performance information and monthly fund factsheets for Irish Life Corporate Business funds and other external managers also. Investment Centre Our online investment centre offers a wealth of information about our investment funds and strategies and a comprehensive download centre. investment-centre Personal Lifestyle Strategy ( PLS) An innovative investment strategy that provides a tailored pension investment solution for each member. We treat individual members as individuals. Any information/tool that is primarily concerned with diligence of the scheme. Trustee meetings Our Client Service Managers are here to help you. We can attend your Trustee meetings to help answer any queries you might have. Legislative updates We want to keep you informed. Sign up for our newsletter for regular legislative updates. Trustee training We run Trustee training courses every 6 weeks. If you are interested, please contact us and we can arrange training for you and your trustees. Trustee Annual Reports and Accounts We draft full Trustee Annual Reports and accounts for schemes with more than 100 members so you don t have to. Setting Up Additional Pension Schemes If you already have a pension scheme set up with Irish Life, we can help you to set up additional schemes for other parts of your business or additional benefits. Group Risk Various types of risk cover can be provided at group rates including lump sum death in service benefits, dependant s pensions on death in service and disability benefits.

3 CONTENTS 1. INTRODUCTION 2 2. FOREWORD 3 3. HOW CAN IRISH LIFE HELP YOU 4 4. FINANCIAL STRENGTH 5 5. RELATIONSHIP MANAGEMENT 5 6. SCHEME ADMINISTRATION SERVICES 6 7. ADMINISTRATION TECHNOLOGY 7 8. DEFAULT INVESTMENT STRATEGY 9 9. INVESTMENTS ACCESS GOVERNANCE RISK BENEFITS TRANSITION AND IMPLEMENTATION CHARGING STRUCTURE CONCLUSION MORE INFORMATION IRISH LIFE CORPORATE BUSINESS IS A WINNER 24 The figures shown in this document are correct as at September

4 SECTION 1 INTRODUCTION Irish Life is delighted to have this opportunity to present our full Defined Contribution (DC) service capabilities to you. Over the past 30 years Irish Life has acquired significant experience in providing pension scheme services for DC schemes. We have developed solutions to address the issues facing DC scheme stakeholders and work closely with each stakeholder to ensure successful transition and on-going management of schemes. The Irish Life solution is built around the following key areas: Excellent and robust IT and administration infrastructure Scheme and member specific investment solution design Comprehensive communication programmes for you and your employees Trustee and scheme governance support We are committed to maintaining an excellent DC experience for you as the sponsoring employer, the Trustees and for members of the scheme. Don t just take our word for it! We have been voted number 1 in our Broker Survey (carried out by Millward Brown) for 12 years in a row now. Also, see Section 17 of this document for our award achievements. In partnership with you, your Financial Adviser and the Trustees you appoint, Irish Life can provide a tailored solution to meet members pension needs from the day they join through to when they eventually draw down their benefits. 2

5 SECTION 2 FOREWORD INTRODUCING IRISH LIFE Irish Life is part of the Great-West Lifeco group (GWL), and is committed to utilising the global knowledge, expertise and innovations from other parts of the organistaion. Irish Life is the DC proposition for Irish Life in the Irish market. Irish Life is about helping the member to understand how much they will need to live on in retirement and to help them take control of their pension saving. MEMBER FOCUS DC schemes are now the company pension plans of choice for most companies looking to help their employees secure income for their retirement. Irish Life is an improved DC company pension plan that can help the pension member to change the way they think about the future. The vision for Irish Life is to help deliver better outcomes to people in retirement. To enable those better outcomes, we need to help people to make better decisions. In this booklet we will outline how Irish Life will help you will help members will ensure you have the best possible workplace pension WHY NOW? We often hear how inadequate the State pension is to support us in our retirement. From our own research, we see that only 29% of us know how much we need to live on in retirement*. Pension engagement is still low, so we want to raise awareness for pensions overall, and specifically company pensions. You will have seen our advertising campaign to promote the Irish Life vision and to help you and your staff achieve better outcomes in retirement. I would like to take this opportunity to thank you for your continued support and look forward to working to empower your employees into the future. Tony Lawless Managing Director, Irish Life Corporate Business *The research was conducted by Coyne Research on behalf of Irish Life in

6 SECTION 3 HOW CAN IRISH LIFE HELP YOU We have a suite of supports for you and your employees that can be accessed online, in person or by post and we aim to help you distinguish between the different types of empowering communications: ACCESS, INVESTMENTS and GOVERNANCE. KEY AREAS Information for members that s easy to understand, and easy to act on so they make better decisions. A range of personalised investment options so you get the solution that suits your company pension plan. Tools and expertise to take the hassle out of pensions for you so you can concentrate on running your business. Any information, communication, tool/service that is primarily geared towards pension education for the member. Any information or tool/service that is primarily to do with investment/funds for employers and trustees. Any information/tool that is primarily concerned with governance of the scheme. We have three guiding principles for our member communications and online developments. Irish Life is about helping members achieve better outcomes in retirement. It is also about supporting you to help them get there. 1 PERSONALISED Member communications are personalised, specific and relevant. We include members own information rather than generic information. 2 ENGAGING Online and mobile tools to help the member interactively engage and become involved with their workplace pension. 3 ACTION Members are always clear on what the next step is and have the ability to easily take that step. We give them a strong call to action. 4

7 SECTION 4 FINANCIAL STRENGTH Established in 1939, Irish Life is Ireland s leading life, pensions and investments company providing 1 million customers with pensions, savings, investments and protection products*. Irish Life is part of the Great-West Lifeco group of companies since July 2013*. Great-West Lifeco is one of the world s leading life assurance and benefit providers with a market capitalisation of approximately 24.1 billion (31 May 2016). Founded more than a century ago, Great-West Lifeco and its subsidiaries have a record for financial strength, earnings stability and consistently high ratings from the independent rating agencies e.g. the Great-West Life Assurance Company has an AA rating from Standard & Poor s (S&P). Irish Life is rated AA by Fitch**. This strong rating reflects: Irish Life s leading competitive position Our strong capital and earnings at 31 December 2015 Irish Life had surplus assets of over 924 million giving 1.86 times cover of the regulatory solvency margin Support from a very strong international parent company with a leading market position and strong diversified earnings. *Insurance Ireland Report 2014 **Fitch Ratings SECTION 5 RELATIONSHIP MANAGEMENT The overall relationship for your DC scheme will be managed by the Corporate Business division of Irish Life. This division provides retirement, life assurance and income protection services and solutions to employers, Trustees and affinity groups. Irish Life Corporate Business provides a range of employee benefit solutions to over 630,000 customers in Ireland. We will appoint an Account Manager and Administration Services Manager, who will have responsibility for the day-to-day management of our relationship with you. The team responsible for the delivery of services is supported by a strong network of client relationship, IT, administration and investment teams. 5

8 SECTION 6 SCHEME ADMINISTRATION SERVICES Irish Life first began administering DC schemes in 1983 and now provide full administration services to nearly 4,000 DC arrangements. We recognise that the delivery of a successful DC scheme requires a variety of robust services and systems with proven consistently high standards. This recognition is evidenced in the very considerable investment in our member administration platform over the past seven years, ensuring the delivery of exceptional pension services which include: Award-winning* scheme administration systems which interface fully with the major payroll services. This means that by using our payroll download facility, manual intervention is completely eliminated. So you have the assurance that your pension contribution information is downloaded from your payroll system and is uploaded directly onto our business systems. Submitting your data on time helps you to meet your compliance obligations in relation to the 21 Day Rule (Pensions Amendment Act). *See Section 17 for our award achievements. Access to Irish Life Investment Managers (ILIM) who provide a wide range of funds representing different asset classes, fund managers and investment styles. Provision of personalised lifestyle strategies ensuring each member has an investment strategy that reflects their how they are likely to use their funds when they take benefits at their normal retirement date. Independent investment manager research and monitoring provided by global experts Morningstar. Access to external investment fund managers e.g. Fidelity Investments.. Wide-ranging member engagement programmes including benefit statements, numerous online tools, apps and a Pension Pulse statement, as well as group and one-to-one meetings. Governance services that help the Trustees and sponsoring employer meet their obligations. Various IT packages form Irish Life s tightly integrated IT infrastructure and facilitate the provision of the highest quality scheme administration and recordkeeping. See Section 6 for more details. ADMINISTRATION TEAM There are over 100 experienced members of staff split into nine administration teams responsible for the delivery of DC services. Each scheme has a dedicated Administration Team with full responsibility for the delivery of your requirements. This client focus allows the Team to develop client specific knowledge and an understanding of your current and emerging needs. All new staff in the administration division are required to successfully complete the Qualified Financial Adviser (QFA) Pensions exam or equivalent qualification to ensure that they meet the necessary competency standards. Substantial experience has been built up and employee retention is high. 6

9 SECTION 7 ADMINISTRATION TECHNOLOGY ADMINISTRATOR This is our DC administration system which is provided by Aquila ( Aquila provides life and pensions administration software solutions with a full range of functionality to support all aspects and features of modern DC pension schemes. The main features include: Holding all member records, including transactions and unit holdings. Updating all relevant transactions on an automatic basis with each member s unit balance updated daily to reflect the latest unit prices. These are fully automated processes, with no manual interventions. Members can switch on any working day and are not restricted to particular days for a switch, subject to investment fund rules. MIDAS This is a comprehensive work tracking and allocation system, which is used across the business to manage workflow and reports on service levels. All queries are logged on this system and are updated to show when they are completed. Midas automatically opens work items as required for regular work and schedules the production of Annual Benefit Statements and Trustee Annual Reports. It allows for full reporting of all work items at scheme level which we incorporate into our Consumer Service Index (CSI) to measure how key services are being delivered and to improve upon them. This ensures that our Service Level Agreements are met consistently and ensure that our schemes are compliant. The CSI on Irish Life s Corporate Business book is was 94% in July These key systems components are integrated to create our overall DC administration and investment platform. Personal information such as fund switches, investments or withdrawals can be updated on Pension Planet Interactive in real time. For fund asset movements (e.g. fund switches, investments or withdrawals), all records are updated on Pension Planet Interactive. There is no concept of unallocated units within the DC schemes administered by Irish Life - the number of units allocated to members reconciles with the scheme balance at all times. Irish Life invests on an on-going basis in its systems and processes and all have a regular upgrade cycle to constantly improve the proposition and modernise the infrastructure. PENSION PLANET INTERACTIVE This is our award winning online (web and mobile) tool for employers, Trustees and members. It allows for the update of records as well as viewing and downloading of documents, providing benefit option quotations, valuations, transaction histories, performance data etc. This system facilitates access at two levels: Members can access information on their DC funds, current values, a wide range of general investment information, a Document Library including correspondence and benefit statements, and benefit projections. They can also switch funds online. Administrator level access for administrators and Trustees allows the same information to be viewed for the overall scheme, with scope to drill down into member accounts, investment splits, and contribution splits as required and authorised. This access can be invaluable as it grants a birds-eye view of the pension scheme s operation. In addition, administrators can add members, and in our latest online development, see the details of any group risk benefits. Similarly, the administrator level view can give access to much of the information that Trustees need to satisfy themselves on the operation of the scheme e.g. check if the contributions have been paid to Irish Life within 21 days of the month end. Once a member is registered for Pension Planet Interactive, they have access to the online fund switching facility. This innovative tool will allow members select from a range of funds or investment strategies that are applicable to their scheme. 7

10 BUSINESS CONTINUITY AND DISASTER RECOVERY Irish Life has a comprehensive business continuity program in place where we operate a dual data-centre disaster recovery strategy. All IT Systems deemed Mission Critical are fully replicated to the alternate Data Centre with data replication in real time. In addition, nightly backups are taken using Networker. This backup process allows all backups to be completed to disk. Full plans are in place for IT Disaster Recovery. These were tested successfully during the Enterprise Test in the second quarter of In the event of a serious incident affecting our ability to operate normally, the business continuity plan would be implemented. The main components of our plan are: Allocation of business resumption roles to named key staff who would be involved in managing the response to the incident and speedy resumption of business. Recovery is through our replication site based in the U.K (London). Both Production and Recovery data centres are internally owned and not outsourced services. Desks are available through activation of our hot site, a fully equipped remote office location to which our operations can be switched quickly to ensure continuity of operations. Core administration, communication and imaging systems are available at this site. A contact plan to co-ordinate communication with our staff to ensure business is resumed as smoothly as possible. The above plans are regularly tested to ensure all staff are clear on how the plan would be implemented, and their roles in the event of its activation. The plans are regularly reviewed to ensure they remain up to date. IT SECURITY Irish Life as part of the Great-West Lifeco (Europe) group of companies has an extensive IT Division which manages the company s IT infrastructure and ensures it remains robust and secure. The IT Division manages the data centre to global industry standards using infrastructure, tools and procedures for data protection, storage and transmission. Protection of the integrity of systems and the data stored on them is an extremely important priority for Irish Life with all infrastructure and procedures implemented to enterprise standards. Firewalls are in place to prevent unauthorised use of/access to data. Penetration testing by external consultants is conducted regularly to challenge the robustness and integrity of our data protection systems. 8

11 SECTION 8 DEFAULT INVESTMENT STRATEGY While having an appropriate range of investment choices is important, the design of an appropriate default strategy is even more important as typically more than 75% of members use the default strategy. When choosing a default strategy it is important to note that the investment strategy identified as suitable for a 30-year old member (i.e. a member in the growth phase of the pension saving journey) will not be appropriate for a 60-year old member (now in the consolidation phase and close to drawing down their pension benefits). The majority of lifestyle strategies or target date funds available in the market will transition members into a pre-determined mixture of cash and bond funds, regardless of how each individual member will actually draw down their retirement benefit. We believe that this one size fits all lifestyle strategy is not the best solution. Instead we offer the Personal Lifestyle Strategy ( PLS) which delivers a solution that matches the likely way a member will draw their benefit. Uniquely, we deliver a default strategy based on relevant individual factors: Age Salary Length of service Regulatory limits Any transfer values from other accumulated pension savings. The significance of this is that by retirement, PLS will automatically invest members in funds that best match how they would typically draw down their benefits at retirement, with each benefit type referenced to ensure regulatory limits are not exceeded. It is different for every individual and shows how a one size fits all approach is not suitable for everyone. PLS works for both active and deferred members. The diagram below sets out how it operates. PHASE 1: GROWTH PHASE PHASE 2: CONSOLIDATION PHASE PHASE 3: TRANSITION TO TARGET BENEFIT FUNDS Investment Split GROWTH FUND STABILITY FUND GROWTH FUND STABILITY FUND GROWTH FUND STABILITY FUND GROWTH FUND CASH FUND Depending on: Age Salary Retirement date Fund value PENSION FOR LIFE FUND FLEXIBLE ARF FUND Additional Voluntary Contribution (AVCs) 11 years to Retirement 6 years to Retirement RETIREMENT We explain Phase 1,2 and 3 in more detail on the next page. 9

12 PHASE 1 PHASE 2 PHASE 3 GROWTH PHASE Phase 1 puts you in funds suitable to achieve investment growth while at the same time balancing investment risk. Initially you will be completely invested in the Growth Fund. CONSOLIDATION PHASE Phase 2 with 11 years to retirement we start to gradually move your fund into the Stability Fund. This helps to protect your pension fund against volatile markets. SWITCHES INTO BENEFIT TARGET FUNDS Phase 3 moves your pension fund into funds that will be most suitable for how you are most likely to use your pension savings upon reaching retirement. You might for example take a lump sum benefit, purchase a pension for life or keep part of your fund for a post retirement investment. Depending on your individual circumstances we will switch your savings into investment funds that target the benefits most suitable to you. Warning: If you invest in these funds you may lose some or all of the money you invest. Warning: The value of your investment may go down as well as up. Warning: The value of the fund may be affected by changes in currency exchange rates. Warning: If you invest in this product you will not have any access to your money until you retire. Securities Lending: The assets in these funds (except the Cash Fund) may be used for the purposes of securities lending in order to earn an additional return for the fund. While securities lending increases the level of risk within the fund it also provides an opportunity to increase the investment return. 10

13 SECTION 9 INVESTMENTS Irish Life is the largest investment fund provider in Ireland managing in excess of 53 billion in assets (March 2016) and offering a comprehensive range of investment solutions to pension scheme clients. Irish Life s investment platform gives pension schemes access to multiple investment strategies and asset classes via: Funds from Irish Life Investment Managers including a broad range of indexed/passive funds which are A rated by the various global investment consultancies. Irish Life s passive capabilities are recognised internationally and were awarded Passive Manager of the Year and Equities Manager of the Year at the 2014 European Pension Awards. Funds from Setanta Asset Management, an Irish Life Group investment company that specialises in managing active equity funds. Setanta is an award winning investment manager that has consistently added value with its funds outperforming their benchmarks. Access to non-irish Life funds that are independently researched and monitored by a global fund research company - Morningstar. Currently there are over 2,000 funds satisfactorily rated by Morningstar. INVESTMENT SOLUTIONS FOR DC MEMBERS Irish Life offers a comprehensive range of fund choices. We will support you in selecting an appropriate mix of funds to make available to scheme members which best meets their investment needs. This will be achieved by engaging with you to understand the perceived risk and return appetites of scheme members and ensuring the final range of selected funds meets these investment needs. Within DC pension schemes the investment risk ultimately lies with the members. Therefore, the funds offered should clearly identify the expected returns and risks involved in each fund. The illustration below gives a summary indication of the main types of funds available to members. Volatility Rating Cash Fund Stability Fund Cautious Fund Flexible ARF Fund Growth Fund Pension for Life Fund Multi Asset Portfolio (MAPS 4) High Growth Fund Indexed World Equity Fund Indexed Emerging Markets Equity Fund Low Risk High Risk Additional specialist funds can also be offered while typically a fund range such as the one above will satisfy the investment requirements for the majority of members in DC schemes with most members choosing the Default Investment Option. While Irish Life offer off-the-shelf funds that deliver on all investment objectives, it should be noted that the flexibility of our investment platform and supporting services allows for the design and implementation of bespoke investment funds for large DC schemes. If you wish to investigate the potential development of a bespoke suite of funds we would be happy to work with you via our fund management and quantitative fund strategies teams in Irish Life to model and generate funds specific to your requirements. These bespoke funds could incorporate investment strategies from both Irish Life and non-irish Life fund management companies. 11

14 ONLINE FUND SWITCHING Online pension fund switches - what you need to know Members of a DC company pension plan can now request fund switches online, through Pension Planet Interactive. The member needs to be a registered user of Pension Planet Interactive. For access they will need to log on to Once logged into Pension Plant Interactive, the member can request their fund switch through the Investment Centre. 12

15 SECTION 10 ACCESS Irish Life will work closely with you, your Pension Consultant and the Trustees appointed to the scheme to implement a communications plan that meets your specific requirements. We have a dedicated Member Engagement Team which is comprised of suitably qualified and experienced staff. We have carried out detailed analysis across our DC schemes. From this analysis, it is clear to see the challenges facing DC pension members today: The contribution being made by the average DC member will produce a modest level of income in retirement. People need to start contributing into their DC scheme much earlier. It is challenging for those on higher salaries to provide themselves with a sufficient replacement income in retirement. This is because the State Pension replaces a much lower proportion of their salaries. By focusing on member outcomes, we give members the tools and knowledge to get the most of their pensions and guide them on key decisions such as: HOW TO INVEST HOW MUCH TO CONTRIBUTE HOW TO TAKE THEIR BENEFITS We can carry out a scheme analysis to identify particular development areas for your scheme. We will meet with you to help you address challenges such as: Young people not joining Members fund choice CHALLENGES FACING EMPLOYERS Members not engaging with their pension Members not paying enough Together we work out how to your employees. We will make sure that, wherever they are in life, they ve got the guidance and support they need, which is easy to understand, and easy to act on. To help your employees become more informed about their pensions, we have developed a range of tools as follows: 13

16 EASY TO UNDERSTAND We ve made pension and investment information easy to understand. MEMBER COMMUNICATION Member communications are personalised, specific and relevant. Whether it s online, in person or on paper, we empower them to make better decisions for their future. All information displays the same easy to understand graphics in all our communication channels. VIDEOS We simplify a number of pension topics for your employees including: What is a pension. How much to invest. PLS. company pension plan video. RETIREMENT CENTRE To help your employees set their retirement goals we developed an easy to understand interactive, online Retirement Centre. PENSION PULSE This communication is designed to help members understand their pension and communicate an adequacy and investment risk message. It focuses on three topics: What estimated pension they can expect in retirement. How this amount compares to a set basic target and What investment risk, if any, they need to be aware of. 14

17 EASY TO ENGAGE We connect your employees to their pension information through our apps and online content. But it s not just about technology; meeting people face to face still plays a huge role. PENSION EDUCATION SESSIONS We provide worksite pension education sessions and presentations as well as individual consultations to help employees get the most from their pension savings plan. These are available in conjunction with your Pension Consultant. MY PENSION APP This clever smartphone app shows your employees whether they are on track with their pension savings or not, making it easy for them to engage and see the impact of increasing their pension savings. The app is available on both ipad and smartphones. Search for My Pension in the app store. FUND CENTRE APP This app gives your members quick access to fund information such as performance and monthly fund factsheets. It contains details for Irish Life funds, Guided Architecture funds and other fund managers. EASY TO TAKE ACTION We help people focus on what they need to do - our technology takes care of the rest. MEMBER LOG-ON We make it easy for your employees to take action and stay up to date with their own personal log-on access to Pension Planet Interactive where they can: Change their pension savings. Switch funds online. Access important information, benefit statements and more. PENSION PROPHET This projection tool allows your employees to access their financial needs in retirement and project their likely retirement income based on different scenarios (retirement ages, contribution levels etc). This is available via or through a link from Pensions Planet Interactive. 15

18 SECTION 11 GOVERNANCE As a long term pension provider, Irish Life fully appreciates the evolving nature of pension planning. We work with you, providing the training, tools and expertise to take the hassle out of pensions for you. EASY TO ENGAGE EMPLOYER MEETINGS We want to understand your priorities and the issues that are important to you. We will set up and manage regular meetings with you, your trustees and your pension consultant to make sure your company pension plan is targeting the outcomes you want. TRUSTEE MEETINGS We are here to help you and your trustees in anyway, for example we can come to your Trustee meetings to answer any queries you might have. TRUSTEE TRAINING All trustees of pension schemes are required to receive formal Trustee Training. Existing Trustees must undertake Trustee Training every 2 years and new Trustees must undergo training within 6 months of being appointed. Where a Trustee fails to undertake the required training, the Pensions Authority may apply an on-the-spot fine of up to 2,000. Irish Life run a regular Trustee Training programme and this has been registered with the Pensions Authority. The programme is designed to cover all of the areas recommended by the Pensions Authority and is conducted over one day. Attendees will receive a Trustee Training Certificate, as evidence they have completed their obligations under the Pensions Act. This training course is only available to Trustees whose pension arrangements are with Irish Life Corporate Business. The current charge for this training is 200 per attendee. See for more information. This also contains the training flyer with dates and sign up. 16

19 EASY TO UNDERSTAND Communication, we make it easy to understand. COMMUNICATION IS KEY We work with you to figure out what communication best suits your employees, whether is it onsite, or online we look after it all. We also keep you informed with regular e-zine newsletter updates and meetings. EASY TO TAKE ACTION We keep you up to date so you know the next steps to take. REGULATORY/LEGISLATION SERVICES We are registered with the Pensions Authority as a Registered Administrator (RA Number 130), and meet all required governance obligations in conjunction with Trustees and sponsoring employers.. Every pension scheme established under a Trust must have an authorised Registered Administrator (RA) to prepare Annual Benefit Statements and Trustee Annual Reports. The RA carries out these core functions for the Trustees. Trustees must produce a Trustee Annual Report for as long as the Trust is in place, must provide every member with an Annual Benefit Statement while they are still in employment, and provide statements on request to deferred members. On-going actions to meet these regulatory governance responsibilities are outlined in the Governance Planner also included in this pack. Irish Life has a dedicated Pensions Technical team, made up of experienced and qualified staff including a qualified Barrister, whose role is to ensure that Irish Life fulfils all its obligations as Registered Administrator for all schemes. The Pension Technical team is positioned to be constantly aware of changes in the regulatory and legislative requirements from any of the regulatory pension bodies, such as the Pensions Authority and the Revenue Commissioners. 17

20 SECTION 12 RISK BENEFITS You may wish to explore providing death in service and income protection benefits for your employees. Irish Life has been a constant presence in the group risk market in Ireland over the last 50 years, providing life assurance and income protection benefits to companies throughout the country. A death in service benefit is a life assurance benefit provided by a company for its employees. It provides a lump sum (and if required a dependant s pension death in service benefit) on the death of a member of the scheme. It is a way for you to provide financial security to the family of an employee in the event of that employee s death while employed by you. In general, companies are providing death in service benefits of four times salary for all employees. Income Protection (IP) is designed to provide an income for employees if they are unable to work for a prolonged period of time due to illness or injury. This is paid by Irish Life directly to the employer, and will help bridge the gap between the employee s Social Welfare benefits paid in the event of disability and the income they require to maintain a reasonable standard of living while they are ill or injured. Payment begins once a pre-determined period called the deferred period has passed since the onset of the condition leading to the claim. This period is usually 26 weeks. Benefits payable under the scheme may increase annually by the lesser of an agreed percentage or the rise in the Consumer Price Index in the preceding 12 months. There are other benefits too: Irish Life takes an innovative and proactive approach to IP claims management and aims to help employees recover and return to work after they have been out of work on an IP claim. Regular contributions to the pension scheme can also be insured through IP. The scheme may also provide a proportionate benefit for employees who are unable to return to work fully and either resume their normal occupation on a part time basis, at reduced earnings, or undertake an alternative occupation at reduced earnings. This is a valuable support for employees who are keen to return to the workforce but who cannot resume their original job in a full capacity. We have all the claims management knowledge and ability in-house with a staff of over 40 IP experts. We don t rely on external parties to assess or manage claims, other than specialist doctors for independent opinions. This gives us greater control and flexibility over our processes. We also have a full range of Rehabilitation Services that aim to help your employees actively back to work. These cover conditions such as cancer, back problems and mental health issues. We are happy to invest in these programs to enable your staff return productively to work at an early stage. This empowers the employee, aids line management and reduces claim durations in a true win-win-win cycle. We see ourselves as not just an insurance provider but part of your HR and absenteeism program, working together to reduce long term workplace absenteeism. These benefits when provided by a company are perceived as being very valuable benefits by employees, and provide important peace of mind to them. They can also be very positive in attracting and retaining employees. Choosing Irish Life as your risk benefits provider also brings you peace of mind in uncertain times. We have a deserved reputation for bringing quality service and a customer-focused attitude to our death in service and IP business. WHY CHOOSE IRISH LIFE CORPORATE BUSINESS AS YOUR GROUP INSURANCE PARTNER More Irish companies choose Irish Life Corporate Business as their insurance partner than any other insurance company.* We have been investing and innovating in the corporate market for over 30 years now and have the experience that your organisation expects from all its business partners. Whether it is death in service or income protection benefits, we have the ability to service all your insurance needs. *Source: Insurance Ireland

21 WHY GROUP RISK? 1. NON-MEDICAL LIMITS Non-medical limit is the maximum sum assured that we will underwrite on an individual without seeking medical evidence, and is confirmed in the quote we have issued to you. This means that on joining a group risk scheme, a member will be automatically insured up to this limit without having to complete any health questionnaire or undergo a medical examination. This significantly reduces the burden of underwriting for the member, and administration for the company. Non-medical limits are available for schemes with 4 or more lives. 2. GEOGRAPHICAL SPREAD OF HEALTH CLAIMS We have access to independent specialist medical examiners ADVISORS AND MEDICAL SPECIALISTS around the country. 3. UNIT RATES Hold for three years it s easy for you to plan your costs each year. 4. EARLY INTERVENTION Irish Life doesn t just pay the claim when an employee is on income protection. We offer guidance and advice on returning employees to work and assisting with a range of rehabilitation services. 5. VALUE FOR MONEY Group Risk is significantly cheaper to provide than individual term cover. There are no additional premium loadings charged for smoker status and no additional costs applied after medical underwriting. The price quoted will the be priced subject to salary roll changes. Information correct as at September We are constantly innovating Irish Life and GloHealth are the first insurers to offer an integrated Life and Health insurance arrangement via the Unison product. For more information, please contact your Account Manager. MULTINATIONAL POOLING (MNP) Multinational Pooling allows multinational companies to share in profits generated from positive insurance results, based on the claims experience spread across all divisions and subsidiaries in different countries worldwide. Irish Life participates in two of the largest international pooling networks in the world: Swiss Life and IGP. Participating in MNP provides: PROFIT SHARE BETTER UNDERWRITING BETTER SERVICE NO EXTRA COST The possibility to participate in insurance profits if the overall worldwide insurance results are positive but with no downside exposure in the event of overall negative results. This makes it a win-win for you. Pooling can provide the means to offer improved underwriting. Irish Life schemes that participate in a pooling arrangement benefit from higher than normal medical free cover limits. For the parent company there is the promise of improved service and facilities such as the provision of a valuable annual financial statement detailing the costs of employee life cover of each subsidiary. No additional premium loading is added by any of the pooling partners connected to Irish Life. Pooling does not affect the relationship with your Financial Adviser and you will continue to deal through your appointed Financial Adviser in the normal way. For more information about IGP and Swiss Life networks and their products and services please log on to their websites and To be suitable for Multinational Pooling a pooling contract must exist between the company headquarters and a pooling partner. For an Irish subsidiary, Irish Life can check if such a pool exists with any of our partners and in the case of an Irish Multinational seeking to set up a pool for the first time, we can place you and your Financial Adviser in touch with an international pooling partner. 19

22 SECTION 13 TRANSITION AND IMPLEMENTATION We have built up a well-defined, efficient and controlled process to support new scheme installations. If you wish to move your existing pension arrangements to Irish Life, we will work with you to ensure the smooth transition and set up of the scheme. Your Account Manager will have responsibility for agreeing a comprehensive implementation plan with you and your Financial Adviser, setting timelines and delivery dates for the new scheme set-up. This plan typically has a number of tasks covering the main areas which include the transfer of member data, agreeing the preferable payment process and also the Trustee and member engagement. A sample of a transition plan is set out below. ACTIVITY OWNER Initial meeting to discuss scheme set up, investment options You/IL X Complete new scheme documentation You/IL X Member data format issued IL X MONTH 1 MONTH 2 MONTH 3 WEEK Set up payroll download facility IL/You X Member data format received You X Apply to Revenue and Pensions Authority for approval IL X WEEK Set up new scheme on Irish Life systems IL X X X X X New scheme set up (and ready to acccept payments) IL X New member packs issued to you IL X Employer meeting to review transistion IL/You X AGREE COMMUNICATION PLAN AND TIMELINES Draft employee presentation and issue to you IL X Presentation approved You X Dates confirmed for presentation and one-to-one sessions You/IL X Complete presentations IL/You X One-to-one sessions with members IL X Member application forms received IL/You X ONGOING Design plan for transfer of existing pension to Irish Life IL/You X Review payroll download IL/You X WEEK Irish Life will have all of the records set up and welcome literature issued within 5 weeks of the receipt of full scheme and member data and receipt of Revenue approval. 20

23 SECTION 14 CHARGING STRUCTURE Each scheme is different, and so we will provide a quote on receipt of full data. Our fee structure will include: Providing standard documentation to set up the scheme. Applying to Revenue for approval. Registering with the Pensions Authority. Full scheme administration and recordkeeping. Investment fund management including PLS. Implementation of the new scheme and the ongoing rollout of the scheme to new members. Liaising with previous provider regarding transfer of data and funds. Ongoing communications and interactions with your scheme members, Trustees and your Financial Adviser, as well as liaising with new members and people who are leaving service. Member services such as managing personal fund thresholds and administering pension adjustment orders. Working with Trustees to ensure all obligations under the scheme are adhered to. Irish Life does not operate a billable-hours model. Therefore, no additional costs will apply for meetings with Trustees or sponsoring employers, on-site member engagement sessions or any ongoing scheme queries. Comprehensive quotes for death in service and income protection benefits can be provided on receipt of full data. 21

24 SECTION 15 CONCLUSION Irish Life are delighted to have this opportunity to demonstrate how we can deliver for your DC scheme.with our expert staff, we are committed to providing a market leading pension saving proposition. This commitment is reflected in the on-going investment in our IT systems to deliver the best in class platform and lifestyle strategies with associated online member engagements channels. If appointed, Irish Life is committed to working with you, the Trustees and your Financial Adviser to deliver the best member outcomes. All the necessary resources will be committed to ensuring the successful addition of members onto our platform and to ensure that the new DC scheme operates in a smooth and efficient manner thereafter. Irish Life is well placed to deliver for your scheme, from a people and systems perspective both now and into the future. 22

25 SECTION 16 MORE INFORMATION For more information please contact your company pension advisor, your Financial Adviser, or Irish Life Sales Support on or IMPORTANT DISCLAIMER This document is intended as a general review of investment market conditions. It does not constitute investment advice and has not been prepared based on financial needs or objectives of any particular person, and does not take account of the specific needs or circumstances of any person. Any comments on specific stocks are intended as an objective, independent view in relation to that stock generally, and not in relation to its suitability to any specific person. Irish Life Investment Managers Limited (ILIM) and Irish Life Assurance plc (Irish Life) manage investment funds which may have holdings in stocks commented on in the document. Irish Life Investment Managers and Irish Life Assurance plc are regulated by the Central Bank of Ireland. 23

26 SECTION 17 IRISH LIFE CORPORATE BUSINESS IS A WINNER! DIGITAL MEDIA AWARDS IRISH PENSIONS AWARDS Best Innovation in Financial Services 2014 Innovation Award of the Year 2013 Best in Financial Services 2012 My Pension App Winner: B2B Innovation 2011 Silver Finalist: Best in Financial Services 2011 Pension Planet Interactive Communication Award of the Year 2013 Pension Administrator of the Year 2012 EUROPEAN PENSIONS AWARDS Shortlisted in 2012: European Pension Innovation of the Year My Pension App Highly commended: Pension Provider of the Year Shortlisted in 2011: Pension Scheme Administrator of the Year Pensions Technology Provider of the Year Shortlisted in 2010: Pension Scheme Administrator of the Year European Pensions Innovation Award

27 THE APPYS AWARDS REALEX WEB AWARDS 2013 Bronze Medal for Best in Financial Services App Fund Centre App Semi-finalist in the Financial Services category 2012 Bronze Medal for Best Insurance App My Pension App EUROPEAN PROCESS EXCELLENCE AWARDS 2011 ICT EXCELLENCE AWARDS Winner: IT Professional/Team of the Year 2011 Saturn, Claims Management System Winner: IT Professional/Team of the Year 2010 Pension Planet Interactive Shortlisted: Private Sector Project of the Year 2010 Pension Planet Interactive Shortlisted for the Best Process Improvement Programme Award. AIM ALL IRELAND MARKETING AWARDS Shortlisted for the Marketing Innovation Award Pension Planet Interactive Winner: IT (Private Sector) Project of the Year 2009 Midas, our work tracking system GLOBAL 360 CUSTOMER INNOVATION AWARD 2009 (EMEA) Winner in 2009: MIDAS 25

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32 PENSIONS INVESTMENTS LIFE INSURANCE Information correct as at September Apple, the Apple logo and iphone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play is a trademark of Google Inc. CONTACT US PHONE: FAX: code@irishlife.ie WEBSITE: WRITE TO: Irish Life Corporate Business, Lower Abbey Street, Dublin 1. Irish Life Assurance plc is regulated by the Central Bank of Ireland. Irish Life Investment Managers Limited is regulated by the Central Bank of Ireland. In the interest of customer service we will monitor calls. Irish Life Assurance plc, Registered in Ireland number , VAT number 9F55923G. 5196cb (rev 8-16) For more up-to-date information, see PEFC/