Investment Duties
Pensions Act
Part VI Trustees of Schemes
[59.
General duties of trustees of schemes
59.-(1) Without prejudice to the duties of trustees generally and in addition to complying with the other requirements of this Act, the duties of trustees of schemes [and trust RACs] shall include the following:
(a) to ensure, in so far as is reasonable, that the contributions payable by the employer and the members of the scheme, where appropriate, are received and that the sums referred to insubsection (1) or (2) of section 58A are invested in accordance with paragraph (b) within 10 days of the latest date on which those sums should have been remitted or paid by theemployer under subsection (1) or (2), as the case may be, of section 58A;
[(aa) to ensure that the contributions to a trust RAC are invested in accordance with paragraph (b) within 10 days of the end of the month in which those contributions are received;]
[(b) to provide for the proper investment of the resources of the scheme [or trust RAC] in accordance with regulations and, subject to those regulations and subsection (2), in accordance with the rules of the scheme [or trust RAC];]
(c) where appropriate, to make arrangements for the payment of the benefits as provided for under the rules of the scheme [or trust RAC] as they become due, whether in the State or in any other Member State, net of any taxes and transaction charges which may be applicable;
[(ca) to undertake trustee training in accordance with section 59AA,]
(d) to ensure that proper membership and financial records are kept;
(e) if the scheme is wound up, to apply the resources of the scheme in discharging its liabilities without undue delay in accordance with the rules of the scheme and, where applicable, with [section 48;]
[(f) other than in the case of the trustees of a small trust RAC, to ensure that at all times there is a registered administrator appointed in compliance with subsection (1AA).]
[(1A) The regulations referred to in subsection (1)(b) shall prescribe rules which shall be adhered to by the trustees of a scheme [or trust RAC] in providing for the proper investment of the resources of the scheme [or trust RAC], in particular, in accordance with paragraph (1) of Article 18 of theDirective.
[(1AA) The trustees of a scheme or trust RAC may appoint different registered administrators to perform the duties specified, respectively, in paragraphs (a) and (b) of section 64G(1), together, in the case of each of those registered administrators, with the duty specified in paragraph (c) insofar as that duty relates to whichever of the first-mentioned duties that administrator is appointed to perform, but, subject to subsection (1AC), must not appoint more than one registered administrator to perform any one of the first-mentioned duties.
(1AB) A person who-
(a) on the day immediately before the date of commencement of section 27 of the Social Welfare and Pensions Act 2008, was retained by the trustees of a scheme or trust RAC to perform on behalf of the trustees any of the duties specified in section 64G(1) under an arrangement having effect as between the parties beyond that day, and
(b) with effect from the date of that commencement, is a registered administrator,
is to be taken, for the purposes of this Part and Part VIA, o have been appointed, in pursuance of the requirements of this Part, to perform the duties to which the arrangement relates.
(1AC) Where, on the day immediately before the date of commencement of section 27 of the Social Welfare and Pensions Act 2008, more than one person was retained by the trustees of a scheme ortrust RAC to perform on behalf of the trustees the duty specified in paragraph (a) or (b) of section 64G(1) under an arrangement having effect as between the parties beyond that day, the Boardmay, in its absolute discretion and subject to such conditions as it sees fit, allow more than oneregistered administrator to be appointed by those trustees in respect of that duty.]
(1B) Trustees of a scheme [or trust RAC], other than a small scheme [or small trust RAC, as the case may be,] shall, subject to subsection (1C)-
(a) prepare and maintain a written statement of the investment policy principles applied to the resources of the scheme [or trust RAC],
(b) review the statement at least every 3 years, and
(c) revise the statement at any time following any change in investment policy which is inconsistent with the statement.
(1C) The statement referred in subsection (1B) shall include the prescribed matters and shall be prepared and maintained in the form and manner that may be prescribed.]
(2) Where, and to the extent that, the rules of a scheme provide for the trustees to invest the resources of the scheme in accordance with directions given by the members-
(a) the trustees shall-
(i) determine in accordance with the rules what different types of investments of those resources could be made at the direction of the members;
(ii) determine in accordance with the rules how those resources are to be invested in cases where the members give no direction;
(iii) in such circumstances and within such time limits as may be prescribed, furnish to the members such information as may be prescribed in relation to the determinations made by them in relation to the matters referred to in subparagraphs (i) and (ii), and
(iv) take such steps as are reasonable to ensure that the members have any further information necessary to enable the members to make informed decisions with regard to the giving of directions in relation to the different types of investment referred to in subparagraph (i),
and
(b) where the trustees comply with the requirements of paragraph (a), they shall incur no liability solely by reason of giving effect to the directions of the members given in accordance with the rules.]
[(3) The trustees of a scheme may, at any time, notwithstanding anything contained in the rules of the scheme and without the consent of the members-
(a) make one or more payments on behalf of the scheme to a policy or contract of assurance [certified] by the Board under section 53B whereby all sums payable under such policy or contract will as and when received by the trustees, be held by them upon trust for the purposes of the scheme,
(b) discharge the liability of the scheme for some or all of the benefits payable to or in respect of a person-
(i) receiving benefits under the scheme, or
(ii) who has reached normal pensionable age,
by making on behalf of that person, one or more than one payment to a policy or contract of assurance [certified] by the Board under section 53B.
(4) If, in any proceedings brought against a trustee of a scheme for breach of trust in relation to the performance by him or her of a function conferred under subsection (3), it appears to the court hearing the case that the trustee is or may be liable in respect of the breach of trust but that he or she acted honestly and reasonably and that having regard to all of the circumstances of the case he or she ought fairly to be excused for the breach of trust, the court may relieve him or her in whole or in part from his or her liability on such terms as the court deems appropriate.]
S.I. No. 294/2006 –