The pension questions in this module were commissioned/requested by the Pensions Board. The questions aim to track supplementary pension coverage since the last time such questions were asked in the QNHS (i.e. Pensions Module Q1 2002, Pensions Update Q1 04 & Pensions Update Q1 05).
Pension Cover:
There are two distinct types of pension cover available.
1. State social welfare pension cover, and
2. Extra pension cover that supplements the social welfare pension with the aim of providing a more comfortable living for persons in their retirement. Pensions that provide this additional cover are generally referred to simply as Supplementary Pensions. It is this type of cover we deal with in this module.
Supplementary pension cover:
There are basically two types of supplementary pension arrangements available to persons.
1. Occupational pensions: A pension scheme set up by an employer to provide retirement benefits for employees. Such schemes are also referred to as company pension schemes.
2. Personal pension plans: A policy taken out with an insurance company in order to provide benefits in retirement. These plans may be taken out by those who are self employed or those employees who are not covered by a company pension scheme.
Directions for answering the Q4 2005 pension questions:
The questions relate specifically to the supplementary pension cover of persons in employment. They refer only to pension schemes which provide a lump sum and/or income for a person's own retirement (not provision for spouses/dependants only).
They do not include permanent health insurance, income continuance/disability benefit insurance, medical insurance or life insurance, which provide financial cover for ill health or death. These questions do not relate to entitlements to state pensions individuals may have.
Employees who are members of a company pension scheme set up by their employer should answer Yes to the PENSION question. Self employed persons should answer option 4 Not applicable to the PENSION question.
Self employed persons who have a personal pension plan should answer Yes to the PERSONAL question. A personal pension is more likely to apply to persons who are self employed, but could include employees who are not in an employer’s pension scheme. Such arrangements involve regular personal contributions paid directly by the person towards a pension scheme. This may also be called a self employed pension or a retirement annuity. Employees who have a personal pension plan should also answer Yes to this question.
SSIAs
A question relating to SSIAs has been included in this module. Policymakers are interested in the number of people who do not have a pension, but who do have an SSIA. 1.1 million SSIAs were taken out by Irish people in a one-year period and so there may be lessons to be learned from the success of this product in relation to increasing pensions take-up.
Questions 'SOURCE' and 'MAIN'
These questions ask about how people plan to fund their retirement. This is important information from a policy perspective. The first question allows multiple responses and will provide information on the full range of ways people plan to fund their retirement. The second question focuses on the main source of income people are expecting to have in retirement. This information will be particularly interesting because it will be possible to see whether people who have indicated that they do not have a pension are planning to retire using a pension as their main source of income. It will also show what alternative sources of income people expect will fund their retirement.
Further information on types of pensions and the Pensions Board is available at
Appendix A.
Module on Pension Provision Q4 2005
Note: The following questions refer only to pension schemes which provide a lump sum and/or income for a person's own retirement (not provision for spouses/dependants only). They do not include permanent health insurance, income continuance/disability benefit insurance, medical insurance or life insurance, which provide financial cover for ill health or death. They do not include P.R.S.I. deductions either.
Respondents at work (either on PES or ILO basis), aged 18 or over and being interviewed directly.
Q1 PENSION
Are you a member of your employer's pension scheme?
1. Yes
2. No
3. Don't know
4. Not applicable (e.g. self-employed)
A person who is self-employed should answer option 4.
(To be asked of all persons in employment (PES or ILO basis) aged 18 years and over).
Q2 PERSONAL
Do you contribute to a personal pension scheme?
1. Yes
2. No
3. Don't know
A personal pension is more likely to apply to persons who are self-employed, but could include employees who are not in an employer’s pension scheme. Such arrangements involve regular personal contributions paid directly by the person towards a pension scheme. This may also be called a self employed pension or a retirement annuity.
You have stated that you have both an employer's and a personal pension. Is this correct?
(To be asked of respondents who do not have either an employer's or a personal pension).
Q3 Many people found SSIAs (Special Savings Incentive Accounts) easier to understand than pensions. Do you have an SSIA?
1. Yes
2. No
3. Don't Know
(To be asked of all persons in employment (PES or ILO basis) aged 18 years and over. Not to be asked to persons who are self-employed and have no paid employees).
Q4 ORG
How many people work in the same organisation as you?
1: 1-4
2: 5-49
3: 50-99
4: 100-499
5: 500+
6: Not applicable
7: Don't know
A self-employed person with no employees should answer option 6.
This is NOT the same as the local unit question.
For example, in a primary school with 10 teachers, a teacher would answer LOCUNIT as 10. However, in this case the correct answer would be 500+ as there are more than 500 primary school teachers employed by the Dept. Education.
For a multi-national company (say Motorola), "organisation" here would mean Motorola-Ireland as opposed to Motorola- International. So where LOCUNIT would refer to Motorola-Cork or Motorola-Dublin, here ORG refers to Motorola-Ireland (i.e. Cork and Dublin).
(To be asked of all persons in employment (PES or ILO basis) aged 18 years and over).
Q5 SOURCE
Allow multiple responses
Do you expect to have income from any of these sources when you retire?
1. Own employer's/personal pension
2. Spouse/partner's employer's/personal pension
3. The State Social Welfare old age pension
4. Savings/Investments/sale of business, farm or other property
5. Other
6. Don't know
(To be asked of all persons in employment (PES or ILO basis) aged 18 years and over).
Q6 MAIN
What do you expect will be your main source of income when you retire?
1. Own employer's/personal pension
2. Spouse/partner's employer's/personal pension
3. The State Social Welfare old age pension
4. Savings/Investments/sale of business, farm or other property
5. Other
6. Don't know
(To be asked of respondents who do not have either an employer's or a personal pension).
Q7 WHYNO
What is the main reason that you do not have a pension?
1. Never got around to organising a pension
2. Don't understand pensions
3. Can't afford a pension
4. Wouldn't be able to access money prior to retirement
5. No scheme available through work
6. Other sources will be adequate (including state pension, savings etc.)
7. Spouse/partner has a good pension
8. Other
9. Don't know
APPENDIX A: PENSIONS
Occupational/company pension schemes:
Individual employers establish company pension schemes for their employees. In many cases they are established following negotiations with the trade unions or representatives of employees. These negotiations normally determine (a) the eligibility conditions for membership, (b) the range and level of benefit and (c) the rates of contribution by the employer and employee.
There are two basic types of occupational pension scheme - defined benefit and defined contribution. In defined benefit schemes the pension and other benefits payable to the member and/or his or her dependants are clearly defined. The pension is calculated usually by reference to a member's final pensionable pay and pensionable service. Employee contributions are usually fixed as a percentage of pay. The employer makes whatever additional contributions are necessary to fund the defined level of pension.
Defined contribution schemes, on the other hand, do not make a benefit promise. It is the contributions into the scheme, which are defined with the employer making a specific level of contribution in respect of each member and the member often contributing at a similar level. The amounts available for benefits at retirement, on death, on leaving service are determined solely by the value of the investment fund accumulated for each member. Hence any uncertainty regarding benefit levels falls on the member.
Employers can now also use the new PRSA pension vehicle to set up a company pension scheme for their employees.
Personal pension plans:
These are investment plans taken out with an insurance company in order to provide benefits in retirement. These plans are primarily designed for the self employed but have also been taken up by those employees who, to date, are not covered by a company pension scheme.
As employers are legally obliged to provide their employees with access to at least one pension scheme as of from the 15th September 2003 this should reduce the number of employees who are not covered by a company pension scheme.
State pensions:
Through the State Social Welfare system people are entitled to a basic flat rate pension . Qualified pay related social insurance (PRSI) contributors are entitled to a contributory retirement pension. Means tested non-contributory pensions will not apply to most people working in pensionable employment as such persons would normally qualify for some level of state contributory pension.
Who are the Pensions Board?
The board is a statutory body set up under the terms of the Pensions Act, 1990. It has two main activities:
* It regulates occupational pension schemes and Personal Retirement Savings Accounts in Ireland as part of its statutory role to monitor and supervise the operation of the Pensions Act.
* It advises the Minister for Social and Family Affairs on pension matters generally.
The Pensions Board includes representatives of trade unions; employers, Government, member trustees, the pensions industry and the various professional groups involved with.