Module Code: H8RETF
Long Title Retirement Financing
Title Retirement Financing
Module Level: LEVEL 8
EQF Level: 6
EHEA Level: First Cycle
Credits: 5
Module Coordinator: Deirdre Bane
Module Author:  
Departments:  
Specifications of the qualifications and experience required of staff  
Learning Outcomes
On successful completion of this module the learner will be able to:
# Learning Outcome Description
LO1 Apply the mathematical principles underpinning pension funding calculations to a range of structured situations
LO2 Demonstrate a developed awareness of the funding standards pertaining to pension schemes & the corresponding implications for benefits
LO3 Critically analyse the key factors for consideration in the determination of an investment strategy appropriate to the bespoke needs of retirement arrangements
LO4 Comprehensively understand the process employed by Trustees in selecting an investment manager, setting & measuring investment objectives, and implementing controls and benchmarking the performance of the investment manager
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is required before enrolment on this module. While the prior learning is expressed as named NCI module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
20678 H8RBEN Retirement Benefits
Co-requisite Modules
No Co-requisite modules listed
Entry requirements  
 

Module Content & Assessment

Indicative Content
Funding for retirement
• Life cycle of pension fund – individual & group arrangements
Funding methods for retirement benefits
• Pay as you go, advance funding, notional funding & outright purchase of annuity • Key considerations – e.g. security, cash flow, legislation, tax relief accounting practices & reporting
Funding mathematics
• Time Value of Money-Net Present Value as a method of Investment & Retirement Funding Appraisal • Future Value & Compound interest –accumulation, fund growth & charges, salary earnings growth & impact of the gap between fund & earnings growth. Annuity rates. Target funding pre/post retirement. • Perpetuities and Annuities
Funding DC & DB Arrangements
• Funding DC arrangements- target driven & Rev Max basis • Funding DB benefits – legislative requirement, funding rate, actuarial valuation methods. Funding standards, funding proposal & implications for scheme & benefits.
Basic Understanding Company Accounts & Impact of Pension provision:
• Basic accounting principles which apply to the accounts of a typical trading company. • Typical trading company’s Balance Sheet, Profit and Loss Account and Cash Flow statements contain and analyse this information to aid the assessment of the value of the company • Impact of employer related scheme have on company accounts – Defined benefit & Defined Contribution
Key factors for Defined Contribution (DC) Investment Strategy
• Scale. Individual/group arrangement. Insured, self invested/directed, SSAS. • Accumulation/Distribution phase. Return v’s Risk. Term to retirement. Liquidity • Risk profile & tolerance • Nature of liabilities. Impact on asset classes & allocation • Investment choice, lifestyle options & defaults funds. Charges • Investment restrictions on for individual & occupational pension scheme (insured, self- directed & SSAS) arrangements • Investment in Geared Investments - restriction.
Defined Benefit (DB) Investment strategy
• Target driven liabilities. • Employer covenant, closed/open arrangement, size of scheme, age profile, financial position of scheme, funding assumptions/proposals, cash flow consideration. Accounting Standards & reporting. Annual Disclosures • Overview of risk Management: Asset/Liability modelling, Liability driven investment • Investment restrictions.
Investment managers relationship with Trustees
• Investment manager selection & appointment process • Setting investment objectives, constraints & benchmark • Main & alternative investment asset classes held by pension funds • Importance of Asset allocation in meeting retirement objectives - volatility & role of diversification & correlation • Ethical & Social Responsible investments • Statement of Investment policy principles. Investment mandates/agreements • Setting & monitoring performance targets, benchmarking, and transition management • Investor Behaviour
Assessment Breakdown%
Coursework40.00%
End of Module Assessment60.00%

Assessments

Full Time

Coursework
Assessment Type: Assignment % of total: 40
Assessment Date: n/a Outcome addressed: 1,2,3,4
Non-Marked: No
Assessment Description:
The project will be a specific case study or report, academic or industry publication, focusing on a real world retirement funding type case requiring The student must also show a clear understanding of the underlying areas to which the case/information pertains and be capable of critically analysing, evaluating the and carrying out the task required. The student must carry out required external reading and/or provide appropriate conclusions, in a clear and coherent manner . The appropriate module assessment strategy will be decided annually by the lecturer, in conjunction with the programme team. (L01-L04) A minimum of 2500 and a maximum of 3500 words for the continuous assessment project
End of Module Assessment
Assessment Type: Terminal Exam % of total: 60
Assessment Date: End-of-Semester Outcome addressed: 1,2,3,4
Non-Marked: No
Assessment Description:
The examination will be at least two hours in duration and will contain a choice of questions. Questions may include computation or essay–style responses and case study based questions. All questions will be marked according to clarity, structure, contemporary examples (that illustrate points made), reference to materials covered, theories and outside reading & research in the field. (L01-L04)
No Workplace Assessment
Reassessment Requirement
Repeat failed items
The student must repeat any item failed

NCIRL reserves the right to alter the nature and timings of assessment

 

Module Workload

Module Target Workload Hours 0 Hours
Workload: Full Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture No Description 2 Every Week 2.00
Tutorial No Description 1 Every Week 1.00
Assignment No Description 2.5 Every Week 2.50
Independent Learning No Description 5 Every Week 5.00
Total Weekly Contact Hours 3.00
Workload: Part Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture No Description 2 Every Week 2.00
Assignment No Description 30 Once per semester 2.50
Independent Learning No Description 59 Once per semester 4.92
Total Weekly Contact Hours 2.00
 

Module Resources

Recommended Book Resources
  • Irish Institute of Pension Management. Retirement Provision,, 2010/11.
  • Institute of Tax. (2014), Pensions – Revenue, Law & Practice Finance Revenue Law and Practice, Finance Act 2013.
  • O’Brien, F & McLoughlin, B. (2006), Fundamentals of Investment: An Irish Perspective,, Gill and Macmillan.
  • O’Brien, F & McLoughlin, B. (2008), Investment Analysis and Portfolio Management,, 9th. Dryden.
  • Reily, F.K. Brown, K.C.. (2008), Investment Analysis and Portfolio Managemetn, 9. Dryden.
  • DeFusco R.A., Pinto J.E., Runkle D.E., and McLeavey D.W.,. (2007), Quantitative Methods for Investment Analysis,, Wiley.
Supplementary Book Resources
  • Jones, C.P. (2007), Investment Analysis and Management, 10th. Wiley.
  • Watshman T., and Parramore K.,. (1997), Quantitative Methods in Finance, Cengage Learning.
  • Jordan. (2008), Fundamentals of Investment, 5th. McGraw Hill.
  • Gannon, S., Kerby J., Brooks, N.,. (2010), Tax Advice Bureau- Guide to Money, Pension & Tax..
This module does not have any article/paper resources
Other Resources
  • [Journal], Pensions and Investments.
  • [Journal], Pension Economics & Finance.
  • [Journal], Retirement Market Insights.
  • [Website], www.betterregulation.com.
  • [Website], http://pensionsireland.ie.
  • [Website], http://www.oireachtas.ie/parliament/oire achtasbusiness/billslegislation/acts/.
  • [Website], www.IAPF.ie.
  • [Website], https://web.actuaries.ie/standards.
  • [Website], www.oecd.org.
  • [Website], www.esri.ie.
  • [Website], www.pensionsire.ie.
  • [Website], http://www.ipe.com.
  • [Website], http://www.iaim.ie.
  • [Website], http://www.genevaassociation.org/.
Discussion Note: