Correspondence, Irish Greyhound Board, Re Bord Na Gcon
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Page 1 of 1 PAC - Requested Information Diana Brannigan to: [email protected], [email protected], [email protected] 16/05/2017 17:32 Hide Details From: Diana Brannigan <[email protected]> To: "[email protected]" <[email protected]>, "[email protected]" <[email protected]>, "P [email protected]" <[email protected]>, 5 Attachments 17.05.16- Update to PAC on pension matter.pdf Employment Details 2012 to present.pdf Harold's Cross Property.pdf 1GB Marketing Strategy.pdf Organisational Review.pdf Hi Margaret In advance of our appearance before the PAC on Thursday 18 May, please find attached the majority of the information requested. There is one remaining piece relating to legal costs which is not transferring across on our server. Our engineer hopes to have resolved the situation by tomorrow and I will forward asap. Apologies for the delay. Kind regards Diana Diana Brannigan I Personal Assistant to Interim Chief Executive Officer, Dr Sean Brady Irish Greyhound Board Green Park I Dock Road Limerick V94 Y17X Telephone: 061 448033 Mobile: 087 195 8219 Website: www.igb.ie Feel the Speed ... Enjoy the Fun! Disclaimer The information in this email is intended only for the addressee(s) named above. Access to this email by anyone else is unauthorised. If you are not the intended recipient of this message any disclosure, copying, distribution or any action taken in reliance on it is prohibited and may be unlawful. Please note that the Irish Greyhound Board utilises anti-virus scanning software but does not warrant that any e-mail or attachments are free from viruses or other defects and accepts no liability for any losses resulting from infected email transmissions. Any views expressed in this email may be those of the originator and do not necessarily reflect those of the Irish Greyhound Board. Please note that the Irish Greyhound Board utilises anti-virus scanning software file:///C:!Users/falseym/AppData!Local/Temp/10/notes4A6434/~web3085.htm 17/05/2017 An Coiste um Chuntais Phoiblí Committee of Public Accounts Teach Laighean Leinster House Baile Átha Cliath 2 Dublin 2 Teil: (01) 618 3169/3790/3074 Tel: (01) 618 3169/3790/3074 076 100 1738 076 100 1738 Ríomhphost: [email protected] Email: [email protected] 09 May 2017 Dr. Sean Brady Interim CEO Irish Greyhound Board Green Park Dock Road Limerick V94 Y17X Dear Dr. Brady Thank you for attending the Committee meeting on Thursday 04 May, 2017. At the meeting you undertook to supply the Committee with further information raised during the course of the Committee’s examination of: Bord na gCon 2015 Financial Statements The issues requiring a response, which follows below, is intended to act as a guideline only. It is suggested that before preparing your response to the matter raised by the Committee, you may wish to consult the full transcript of the proceedings. The Committee Secretariat records show that the following information is to be supplied; 1. A note on the legal costs to include any outstanding legal cases and a list of legal service providers to Bord na gCon 2. A note on the pension fund to include how much it is underfunded and the steps taken to consult staff. 3. A note on staff appointments with a list of any staff changes from 2012 to present and a note on the organisational review that is being conducted. 4. A copy of the marketing strategy. 5. A note on the valuation carried out on Harold’s Cross Stadium. The Committee would expect that this information should be forwarded within prior to your appearance before the Committee on 18 May 2017. If you have any queries I may be contacted by telephone at 618 3074. Yours sincerely, [PAC32-I-336] Cuirfear fáilte roimh chomhfhreagras i nGaeilge _________________ Margaret Falsey Committee Secretariat Committee of Public Accounts 01 - 618 3074 [PAC32-I-336] Cuirfear fáilte roimh chomhfhreagras i nGaeilge Deficit on the Scheme The pension deficits of the IGB defined benefit pension scheme, as, measured under the accounting standards1, have been detailed in the table below: PENSION ANALYSIS 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 ASSUMPTIONS: Rate of Increase in Salaries 2.25% 2.3% 2.3% 3.0% 3.0% 3.0% 3.0% 3.0% 3.5% 4.5% Rate of Increase in Pensions in payment 0.0% 1.5% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.25% Rate of increase of state retirement pension 1.5% 1.5% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.25% Discount Rate 1.8% 2.6% 2.1% 3.8% 3.9% 5.0% 5.5% 5.25% 5.75% 5.5% Inflation Assumption 1.5% 1.5% 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.25% Life Expectancy Retiring Today (members aged 65) 23.8 23.7 23.6 23.5 23.3 23.1 22 21.7 21.5 20.5 Retiring Today (members aged 40) 26.7 26.6 26.5 26.4 26.3 26.2 25.1 25 24.9 20.5 * Life Expectancy Assumption figures for 2007 - 2010 are statistical only and were not used in any IGB calculations. These figures were provided by WTW. PRINCIPAL ASSETS & LIABILITIES €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 Equities - - - - - - - 7,864 5,781 10,913 Fixed Interest 8,772 8,481 8,866 7,660 8,044 7,600 7,400 2,593 2,576 2,291 Property - - - - - - - 650 708 1,098 Cash 5,496 4,338 4,093 4,203 4,311 4,423 4,137 256 - - Other (Insured Assets) 426 444 343 324 295 295 276 572 1,055 902 TOTAL MARKET VALUE OF ASSETS 14,694 13,263 13,302 12,187 12,650 12,318 11,813 11,935 10,120 15,204 PRESENT VALUE OF SCHEME LIABILITIES - 19,750 - 21,401 - 23,667 - 19,026 - 19,872 - 16,106 - 14,914 - 15,353 - 14,938 - 15,214 (Deficit)/Surplus in the scheme - 5,056 - 8,138 - 10,365 - 6,839 - 7,222 - 3,788 - 3,101 - 3,418 - 4,818 - 10 Related Deferred Tax Liability - - - - - - - - - - NET PENSION ASSET/(LIABILITY) - 5,056 - 8,138 - 10,365 - 6,839 - 7,222 - 3,788 - 3,101 - 3,418 - 4,818 - 10 In the period 2007 - 2009, an average of 65% of the Groups pension assets were held in Equities and 7% in Property. From 2010 - 2016, reflecting the appetite for risk, an average of 63% of the pension assets have been held in Fixed Interest, & a further 34% in cash. Net pension liability is currently the lowest it's been since 2011, and represents a 51% reduction on 2014's liability Values of pension investments have remained relatively static with recent increases in line with additional cash contributions to the scheme. However the liabilities of the scheme (which are an estimate of future pension liabilities) have increased substantially due principally to the increased estimate of age of members of the scheme (e.g. member age 40 with a life expectancy of 26.7 years as compared to 20.5 in 2007) along with reduced discount rate which are influenced by the expected returns from investments and the increased cost of purchasing annuities for members due to longer life expectancy. It is expected that any growth in asset values will match inflationary increases in liabilities however this is a further risk in the scheme. Payments into pension funds The following represents the payments made to pension schemes during the years in question Pension Stats:- 2012 2013 2014 2015 2016 Contributions to DB Fund 439,390 391,904 337,786 808,226 1,058,058 Contributions to PRSA/DC Scheme 58,149 44,307 102,634 147,763 140,475 497,539 436,211 440,420 955,989 1,198,533 1 Actuaries use a different method of measurement termed Minimum Funding Standards Implementation of proposal: The revised pension proposal received Board approval in August 2016 and was adopted by the Pension Board in September 2016 with immediate adoption thereafter. All actions have been fully implemented. Principal changes: The changes proposed by the Trustees of the scheme and accepted by the employer IGB are as follows: 1. Pension payments from the scheme were guaranteed to be increased in accordance with CPI subject to an upper limit of 5%, such guarantees have now been removed. There is a slight variation for members with Class D social insurance contributions. 2. The DB scheme will cease to accrue for current service for remaining employed members from January 1 2019 with all remaining active service then transferring to a defined contribution arrangement. 3. An alternative defined contribution scheme has been created where IGB will contribute a minimum of 5% employer’s contribution and will match any employee contribution up to a maximum of a further 5%. 10% of the membership (3) have already transferred to this scheme 4. The scheme arrangement is to be subject to annual review. Interaction/Communication with Staff by Executive The communication process under a defined benefit arrangement is primarily overseen by the Trustee of the scheme albeit with employer input. A number of meetings with staff were arranged to advise and update of the position of the scheme and the options available within the scheme. Additionally the meetings were proposed to advise members of the scheme of the underlying risk that remained in the scheme without reaching a formal arrangement to address the scheme liabilities.