Transcript Presentation - Rural Doctors

‘Rural, Island & Dispensing Doctors of
Ireland
28th Annual Conference
5th October 2013
‘Pension Issues’
Dr. Anthony Lundon
Chairman Trustee GMS Superannuation Fund
Trustees

Dr.
Dr.
Dr.
Dr.
Dr.
Dr.
Dr.
Dr.
Dr.
Dr.

Corporate Trustee









Anthony Lundon
Eugene Swaine
Jim Molloy
Philip Murray
Niall Walsh
Martin Healy
Fergus Macnamara
Damian Rutledge
Larry Mc McEntee
Michael Kelleher
-
Galway
Dublin
Limerick
Sligo
Longford
Cork
Waterford
Dublin
Meath
I.M.O. GP
Comm Trustee
Administrators – Mercer
Corporate Trustee – Irish Pensions
Trust
Pensions
What?
Types:
- DB (Defined Benefit) Schemes
- DC (Defined Contribution) Schemes
Pensions





Private
GMS
AVC’s
Salary + GMS
Old Age Pension/Other
GMS Superannuation Fund
1988/9 – Pensions Negotiated & Capitation
-
History
Ideals
Benefits
GMS Superannuation Fund
Benefits: 1. Pension – GP & Spouse
2. Illness Benefit
3. Death in Service Benefit
GMS Superannuation Fund
Pension: “Options on retirement”
- Dr: Cash lump sum &
pension or pension only.
(note revenue limits)
- Dr only Vs Dr & Spouse
GMS Superannuation Fund
- GP’s - Fund Value
- Contributions & Bonuses
- Bonus: +/- 2012 bonus 6.9%
AVCs
Additional Voluntary Contributions
 What
 How
 When
 Tax efficiency
GMS Superannuation Fund
AVCs
Specified percentage – Aged under 30 – 15%
Aged 30 to 39 – 20%
Aged 40 to 49 – 25%
Aged 50 to 54 – 30%
Aged 55 to 59 – 35%
Aged 60 or over – 40%
GMS Superannuation Fund
 Release
of bonuses: +/- Active members
- Retired members
 Four year smoothing system
GMS Superannuation Fund
Effect
of Pensions Levy
Options
within funds
close to retirement
GMS Superannuation Fund
-
Your pension:
GMS fund Vs Insurance Industry
E.G. Fund of €500,000 as of 31/12/12
Report on Pension Charges
Publication announced on 23/10/12
by Joan Burton,
Minister for Social Protection


Individual pension charges expensive
- Loss of up to 30%
Occupational : Loss of up to 15%
GMS Superannuation Fund
31/12/12 - Fund of €500,000.
GP 65 yrs & 2/3 Spouses pension
Pension PA
Increases
GMS plan
€25,500
If fund can
afford it
Insurance
company
€21,500
None
Insurance
company
€15,000
Pension
increases with
inflation (CPI)
GMS Superannuation Fund
31/12/12 - Fund of €500,000.
GP 70 yrs & 2/3 Spouses pension
Pension PA
Increases
GMS plan
€29,000
If fund can
afford it
Insurance
company
€25,000
None
Insurance
company
€17,000
Pension
increases with
inflation (CPI)
GMS Superannuation Fund
Performance Update
Year
Actual
Fund
Return
Declared
Return
Pension
Increases
CPI
2007
2008
-1.9%
-32%
13.7%
-8.0%
6.7%
0.0%
4.9%
4.1%
2009
20.0%
-5.5%
0.0%
-4.5%
2010
5.1%
-5.2%
0.0%
-1.0%
2011
-4.5%
-9.4%
0.0%
2.6%
2012
+12.2%
6.9%
0.0%
1.7%
2013(YTD)
+7.9%
GMS Superannuation Fund

2011: Marks end of negative bonuses

2012: Fund now fully funded &
positive outlook for future.
- Markets vary
- Investment Strategy diversified
GMS Superannuation Fund
 Pension
Protection
- Premium Waiver Scheme
 Permanent
Health Insurance
Politics and Pensions
- New limits re pensions – 01/01/14
Fund value ? / €60,000 per annum
Excluding OAP
Note: 30% of AVCs may be withdrawn
before 27/03/16
GMS Superannuation Fund
Pensions - The Future
- New GMS Contract
- ARF’s & GMS
Superannuation Fund