Leaving & Terminations
Pensions Act
[Part III Preservation of Benefits and Minimum Value of Contributory Retirement Benefits]
27. Interpretation
27.-(1) In this Part and the Second Schedule, except where the context otherwise requires-
[“contributory retirement benefit” means a member’s ordinary retirement benefit multiplied by the member’s reckonable service during which, under the rules of the scheme, he was required to pay contributions to the scheme and divided by the member’s total reckonable service;
“contributory scheme” means a defined benefit scheme under the rules of which members are, or have been, required to pay contributions to the scheme;
“minimum contributory retirement benefit” means a contributory retirement benefit of at least the minimum value required under section 35A;
“ordinary retirement benefit” means long service benefit, excluding any such benefit which is secured by way of additional voluntary contributions or which represents a transfer of accrued rights from another scheme;]
“qualifying service”, in relation to a member of a scheme, means the aggregate of every period of reckonable service, whether or not continuous in each case, under-
(a) the scheme,
(b) every other scheme relating to the same employment,
(c) every other scheme relating to any other employment in respect of which rights to long service benefit have been granted under the scheme in substitution for accrued rights under such other scheme:
Provided that no such period, or part thereof, shall be counted more than once;
“transfer payment” has the meaning assigned to it by section 34 (2).
(2) Where the rate or amount of part of the long service benefit payable under a defined benefit scheme is directly determined by [the accumulated value of the contributions] paid by or in respect of the member, then, for the purposes of this Part and theSecond Schedule, the scheme in so far as it relates to such part of the long service benefit shall be treated as a defined contribution scheme and, in so far as it relates to other benefits (including the remaining part of the long service benefit) shall be treated as a defined benefit scheme.
(3) References in this Part and the Second Schedule to a defined contribution scheme or a defined benefit scheme shall be construed as including references to a part of such scheme.
28. Entitlement to preserved benefit
28.-(1) Subject to section 37, this Part and the Second Schedule shall apply to any member of a scheme who has service in relevant employment after [1 January 1991].
[(2) A member of a scheme whose service in relevant employment terminates otherwise than on death before normal pensionableage shall be entitled to a benefit (in this Act referred to as a “preserved benefit”) if-
(a) his service in relevant employment so terminates after 1 January 1991 but on or before 1 June 2002, and he has completed at least five years’ qualifying service of which at least two such years fall after 1 January 1991, or
(b) his service in relevant employment so terminates after 1 June 2002, and he has completed at least two years’ qualifying service which fall after 1 January 1991.]
29. Preserved benefit – defined benefit scheme
29.-(1) In this section-
“contingent pension” has the meaning assigned to it by subsection (5);
“scheme” means a defined benefit scheme.
(2) A preserved benefit shall be provided under a scheme only in respect of-
(a) a long service benefit, or
(b) where, by the exercise of an option under subsection (5), the trustees so determine, a contingent pension.
(3) A preserved benefit shall be calculated in accordance with Part A of the Second Schedule.
(4) Subject to subsection (5), on the death of a member of a scheme who is entitled to a preserved benefit under the scheme before such benefit commences to be payable, an amount shall be payable under the scheme to his personal representative in respect thereof equal to the actuarial value of the preserved benefit (including any preserved benefit under subsections (6)and (7)) immediately before the death of the member concerned.
(5) (a) Where a scheme provides for a pension payable to, or for, either or both the widowed spouse or any dependants of themember concerned in the event of that member’s death while in relevant employment prior to his attaining normal pensionable age (in this section referred to as “a contingent pension”) the trustees of the scheme may, in lieu of the benefit specified in subsection (4), provide under the scheme a contingent pension calculated in accordance withparagraph 1 [and, where appropriate, paragraph 4] of Part A of the Second Schedule and such benefit shall be deemed to form part of that member’s preserved benefit.
(b) For the purposes of paragraph (a), references in [paragraphs 1 and 4] of Part A of the Second Schedule to long service benefit shall be construed as references to a contingent pension within the meaning of this section.
(6) Where a member of a scheme is entitled to additional long service benefit under the scheme by virtue of the payment ofadditional voluntary contributions, a preserved benefit in respect of such benefit shall be calculated in accordance withparagraph 3 of Part A of the Second Schedule:
Provided that if the member has received a refund of any such contributions paid by him during any period of reckonable service prior to [1 January 1991], then, in calculating the amount of any preserved benefit under this subsection, any period ofreckonable service prior to the [1 January 1991] shall be disregarded.
(7) Where additional long service benefit has been granted under a scheme to a member in respect of a transfer of accrued rights from [another occupational pension scheme], [where such accrued rights result from the termination of the employment to which [that occupational pension scheme] applies,] that benefit shall be provided [as part of] the preserved benefit undersubsection (2):
Provided that if the member has received a refund of the contributions paid by him to the [other occupational pension scheme] prior to [1 January 1991] which were included in the rights transferred from the [other occupational pension scheme] then, in calculating the amount of any preserved benefit under this subsection, any additional long service benefit accrued under that [other occupational pension scheme] prior to [1 January 1991], shall be disregarded.
30. Preserved benefit – defined contribution scheme
30.-(1) In this section-
[‘accumulated value’, in relation to any appropriate contributions, shall be construed in accordance with section 2;]
“appropriate contributions” shall be construed in accordance with subsections (4), (5) and (6);
“scheme” means a defined contribution scheme.
(2) A preserved benefit shall be provided under a scheme and it shall be such that its actuarial value at the date on which payment of it commences is equal to the accumulated value on that date of the appropriate contributions in respect of the memberconcerned under the scheme.
(3) On the death of a member of a scheme who is entitled to a preserved benefit before such benefit commences to be payable, an amount shall be payable under the scheme to his personal representative in respect thereof equal to the accumulated value of the appropriate contributions under the scheme in, respect of the member immediately before his death.
[(4) Subject to subsections (5) and (6), the appropriate contributions shall be the contributions paid by or in respect of the member concerned for the purposes of long service benefit from-
(a) in the case of a member who is entitled to a preserved benefit under section 28(2)(a), 1 January 1991 or, if later, the date of the commencement of the relevant employment,
(b) in the case of a member who is entitled to a preserved benefit under section 28(2)(b), the date of the commencement of the relevant employment,
but excluding additional voluntary contributions and any payment representing a transfer of accrued rights from another scheme.]
(5) Where a member of a scheme is entitled to additional long service benefit under the scheme by virtue of the payment ofadditional voluntary contributions, the appropriate contributions shall be all such contributions:
Provided that if the member has received a refund of any such contributions paid by him prior to [1 January 1991], theappropriate contributions shall be the contributions paid by him from [1 January 1991].
(6) Where additional long service benefit has been granted under a scheme to a member in respect of a transfer of accrued rights from [another occupational pension scheme], [where such accrued rights result from the termination of the employment to which [that occupational pension scheme] applies,] the appropriate contributions shall be the amount of the payment received by the trustees of the scheme in respect of such accrued rights:
Provided that if the member has received a refund of contributions paid by him, prior to [1 January 1991], under [that occupational pension scheme] which were included in the rights transferred, the appropriate contributions shall be the portion of the payment received by the trustees which represented rights accrued after [that date].
[(7) Where benefits under a scheme are secured under one or more policies of assurance, the realisable value, on the date on which payment of preserved benefit commences, of the resources of the scheme which represent the appropriate contributions paid by or on behalf of a member shall, for the purposes of this Part, be the proportion of the proceeds of every such policy applicable to those contributions.]
31. Payment of preserved benefit
31.-(1) A preserved benefit shall be payable out of the resources of the scheme.
(2) Except as provided for in this Part, a preserved benefit shall be payable in accordance with, and subject to, the rules of thescheme being the rules as at the date of the termination of the relevant employment.
32. Non-entitlement to refund of contributions
32. (1) A member of a scheme who is entitled to preserved benefit under the scheme [in accordance with section 28(2)(a)] shall not be entitled to receive a refund of any contributions paid to that scheme after [1 January 1991].
[(2) A member of a scheme who is entitled to preserved benefit under the scheme in accordance with section 28(2)(b) shall not be entitled to receive a refund of any contributions paid to that scheme.]
[(3) A member of a scheme who would be entitled to preserved benefit under the scheme in accordance with the provisions of this Part if his service in relevant employment were to terminate shall not be entitled to receive a refund of any contributions paid to that scheme.]
33. Revaluation of preserved benefit
33.-[(1) In this section and Part B of the Second Schedule “revaluation year” means a year beginning on or after 1 January 1996.]
(2) Where in respect of any preserved benefit payable under a defined benefit scheme to or in respect of a member and calculated in accordance with [any or all of paragraphs 2, 3 and 4] of Part A of the Second Schedule, there is a period of at least one year between-
(a) the commencement of the first revaluation year or the date of the termination of the member’s relevant employment, whichever is the later, and
(b) the date on which he attains or would attain normal pensionable age or the date of his death, whichever is the earlier,
then, the preserved benefit shall be revalued annually as soon as may be after the end of each revaluation year in accordance with the provisions of Part B of that Schedule.
(3) A revaluation shall not be made under this section in respect of a member of a scheme after-
(a) the date of payment of preserved benefit to or in respect of him, or
(b) the date of his attainment of normal pensionable age, or
(c) the date of his death,
whichever is the earliest.
(4) The Minister, after consultation with the Minister for Finance, shall, in respect of each revaluation year, prescribe the percentage (in this Act referred to as “the revaluation percentage”) [which shall determine the amount] by which thepreserved benefit is to be [adjusted] by the revaluation thereof under this section for that year.
[(5) The percentage prescribed under subsection (4) in respect of a revaluation year shall be-
(a) in respect of a revaluation year ending on or before 31 December 2012-
(i) the percentage that equals the increase in the general level of consumer prices during that year calculated bythe Minister in such manner as he or she thinks appropriate, or
(ii) 4 per cent,
whichever is the lesser, and
(b) in respect of a revaluation year ending on or after 1 January 2013-
(i) the percentage that equals the increase or decrease in the general level of consumer prices during that year calculated by the Minister in such manner as he or she thinks appropriate, or
(ii) 4 per cent,
whichever is the lesser.]
[(6) The Minister may by regulations-
(a) vary the percentage specified in subparagraph (ii) of subsection (5)(a) or subparagraph (ii) of subsection (5)(b), but any such variation shall not apply in the case of a preserved benefit the entitlement to which arises before the date of the making of the regulations concerned, and
(b) increase the percentage specified in subparagraph (ii) of subsection (5)(b) in respect of any revaluation year to wholly or partly take account of any negative percentage prescribed under subsection (5)(b) in a previous revaluation year in respect of a member whose benefit had previously been adjusted by that negative percentage.]
(7) Where, in the opinion of the Minister, no [change] in the general level of consumer prices occurred during a revaluation year, he shall not prescribe a percentage under subsection (4) in relation to that year and the revaluation of any preserved benefitthat, but for this subsection, would fall to be made as soon as may be after the end of that year shall not be made.
34. Entitlement to transfer payment.
34.-(1) This section shall apply to a member of a funded scheme who is entitled to a preserved benefit under this Part.
[(2) A member of a scheme to whom this section applies shall be entitled to the transfer of an amount of money from the scheme (in this Part referred to as a ‘transfer payment’) in accordance with subsection (3) equal-
(a) in the case of a defined benefit scheme, to the actuarial value of the preserved benefit, and of any amount payable under section 29(4), on the date on which the relevant application under subsection (3) is received by the trustees or on a date selected by the trustees which is not earlier than three months before, nor later than three months after, the first-mentioned date, and
(b) in the case of a defined contribution scheme, to the accumulated value of the appropriate contributions under the scheme in respect of the member, such value to be determined on a date not later than three months following the date of the receipt of the application,
and in each case regulations may prescribe that the transfer payment is to be calculated in accordance with any applicable professional guidance issued by the Society of Actuaries in Ireland and specified in the regulations [or with any other applicable guidance issued by any other person (including the Board or the Minister) and specified in the regulations]:
[Provided that-
(i) in the case of a member who is entitled to a preserved benefit under section 28(2)(b), the part of the transfer paymentwhich represents the actuarial value of benefits specified in section 44(a)(v) may be reduced by multiplying it by the specified percentage shown in the most recent actuarial funding certificate having an effective date after 1 June 2002 in respect of that scheme, and
(ii) in the case of a defined benefit scheme, if the actuary advises the trustees that he is reasonably satisfied that, if he were to prepare an actuarial funding certificate under section 42 having an effective date of the day upon which the amount of the transfer payment is expected to be made, he would not certify that the scheme satisfies the funding standard provided for in section 44, the amount of the transfer payment applied by the trustees after 2 April 2003 may be reduced by the trustees, on the advice of the actuary, having regard to the provisions of section 48.]
[(3) A member of a scheme who is entitled to a transfer payment under subsection (2) may exercise such right by making an application in writing to the trustees of the scheme providing them with such information as they may reasonably require and directing them to apply the transfer payment-
(a) in the making of a payment to another funded scheme which provides or is capable of providing long service benefitand of which he is a member or a prospective member, or
(b) in the making of one or more payments falling to be made under policies or contracts of assurance that are effected on behalf of the member with one or more undertakings (within the meaning of the Insurance Act, 1989) and that are [approved by the Revenue Commissioners for the purposes of Chapter I of Part 30 of the Taxes Consolidation Act 1997,] which policies or contracts of assurance shall not be deemed to be an occupational pension scheme [for the purposes of this Act, or]]
[(c) in the making of a payment to another scheme which is not a funded scheme, which provides or is capable of providing long service benefit, of which he is a member or a prospective member and the trustees of which are willing to accept payments made under this paragraph, or
(d) where so prescribed, and in accordance with such conditions as may be prescribed, in the making of a payment to the trustees, custodians, managers or administrators of an arrangement for the provision of retirement benefitsestablished within the State, not being an arrangement of the kind mentioned in paragraph (a), (b) or (c), or
(e) where so prescribed, and in accordance with such conditions as may be prescribed, in the making of a payment to the trustees, custodians, managers or administrators of an arrangement for the provision of retirement benefitsestablished outside the State.]
(4) Where the trustees of a scheme receive an application under subsection (3), they shall apply the transfer payment concerned, within the period of 3 months following the date of the receipt of the application, in the manner directed by the application under subsection (3).
(5) Where-
(a) a person has exercised the entitlement conferred on him under subsection (2), and
(b) the trustees of the scheme from which the transfer payment is being made have complied with the provisions of subsection (4),
then, they shall be discharged from any obligation to provide benefits to which the transfer payment relates.
(6) Where a member of a scheme directs the application of a transfer payment in accordance with subsection (3) (a) [or (c)], thetrustees of the scheme to which the transfer payment is being made shall accept such payment and shall provide benefits of an actuarial value that is equivalent to the amount of the transfer payment in such form as they may determine.
(7) A member of a scheme shall not be entitled to a transfer payment under this section if-
(a) payment of his preserved benefit has commenced, or
(b) he fails to exercise the entitlement within a period of 2 years (or such longer period as may be provided for by thescheme or determined by the trustees of the scheme) after the date of the termination of the relevant employmentconcerned.
35. Power of trustees to effect transfer payment
35.-(1) Notwithstanding anything contained in section 34, the trustees of a scheme may, in such circumstances as may be prescribed, instead of providing a preserved benefit out of the resources of the scheme, effect, without the consent of the memberconcerned, a transfer payment from the scheme by making one or more payments referred to in [section 34(3)(b) or (d)].
(2) Where the trustees of a scheme have effected a transfer payment in accordance with subsection (1) they shall be discharged from any obligation to provide benefits to which the transfer payment relates.
35A. Minimum Value of Contributory Retirement Benefit
35A.-(1) Where the service in relevant employment of a member of a contributory scheme terminates after 1 June 2002-
(a) at or after normal pensionable age, or
(b) within five years before normal pensionable age,
and the member is entitled under the rules of the scheme to a contributory retirement benefit, the amount of the contributory retirement benefit shall, if necessary, be increased so that its actuarial value is not less than the minimum value calculated in accordance with Part C of the Second Schedule.
(2) No part of the amount of any increase to a contributory retirement benefit to be made under subsection (1) shall be provided by reducing the amount of any other benefit payable under the rules of the scheme concerned.
(3) Any increase in contributory retirement benefit arising under subsection (1) shall be payable out of the resources of thescheme.
(4) Except as provided for in this Part, a contributory retirement benefit increased under subsection (1) shall be payable in accordance with, and subject to, the rules of the scheme, being the rules as at the date of the termination of the relevant employment.]
36. Provisions of schemes relating to forfeiture and lien to be disregarded
36.[(1)] Any provision of a scheme-
(a) providing for the forfeiture of a preserved benefit [or of a minimum contributory retirement benefit], or
(b) enabling the employer of a member to exercise a lien on the member’s preserved benefit [or a member’s minimum contributory retirement benefit],
shall be disregarded for the purpose of this Part.
[(2) Notwithstanding paragraph (a) of subsection (1) where a member of a scheme or such other person who is entitled topreserved benefit [or a contributory retirement benefit] is or becomes bankrupt (within the meaning of the Bankruptcy Act, 1988), or assigns or charges or attempts to assign or charge the benefit, the trustees of the scheme may, at their discretion, apply any provision of the scheme, under which a benefit may be forfeited and paid, to the member or such other person specified in the provision.]
37. Exclusion from and modification of Part III and Second Schedule
37.-(1) Where the Minister is of the opinion that the benefits provided under schemes or categories of schemes during a period that the Minister considers to be of reasonable length for the purposes of this subsection are no less favourable to the membersconcerned than those required by this Act to be provided under the schemes or categories of schemes, he may by regulationsmade with the consent of the Minister for Finance exclude those schemes or categories of schemes from the application of this Part and Second Schedule.
(2) Where the Minister considers that it would be unreasonable, having regard to their nature and character, and would be contrary to the interests of their members, to require specified schemes or categories of schemes to comply fully with specified provisions of this Part and the Second Schedule, he may by regulations made with the consent of the Minister for Finance provide that those provisions shall apply in relation to those schemes of categories of schemes with specified modifications, being modifications that in the opinion of the Minister are reasonable and do not materially alter those provisions.
(3) Where the Minister so provides by regulations, then notwithstanding anything in this Part, in the cases specified in theregulations-
(a) a period of a person’s reckonable service under a scheme in different employments may be treated for the purposes of this Part as a period of reckonable service under the scheme in such one or more of those employments as may be specified;
(b) a person’s reckonable service in any employment may be treated in the case of interruption of such employment as terminated or not [terminated;]
[(c) a member’s service in relevant employment may be treated as terminated or not terminated.]
(4) The Minister may by regulations specify the method of calculating preserved benefit [and the minimum value of contributory retirement benefit under section 35A] payable under schemes and for such adjustments of the amounts of such benefit as may be necessary to facilitate its computation.
[(4A) Regulations may specify the method of calculating preserved benefit [and the minimum value of contributory retirement benefit under section 35A] payable under schemes where on termination of relevant employment a member has periods ofreckonable service in more than one scheme relating to the same employment [or in a defined benefit scheme and a defined contribution scheme which are both part of the one scheme].]
[(5) This Part shall not apply to a scheme established under the Defence Forces (Pensions) Acts, 1932 to 1975.]
38. Conflict between Part III and schemes
38.-(1). The provisions of this Part, of any regulations made there under and of the Second Schedule shall override any rule of a schemeto the extent that that rule conflicts with those provisions.
(2) Any question as to-
(a) whether any provision of this Part (including the application of any provisions as modified by regulations), anyregulations made thereunder or the Second Schedule conflicts with any rule of a scheme, or
(b) whether a scheme is a defined benefit scheme or a defined contribution scheme for the purposes of this Part, [or
(c) whether a member’s service in relevant employment may be treated as terminated for the purposes of this [Part,]
shall be determined by the Board on application to it in writing in that behalf by a person specified in subsection (3).
(3) The following persons shall be entitled to make an application under subsection (2) in respect of a scheme:
(a) the trustees of the scheme;
(b) any person who is an employer of persons in relevant employment to which the scheme applies;
(c) any member or prospective member of the scheme;
(d) such other persons (if any) as may be prescribed, being persons who, in the opinion of the Minister, ought to be entitled to make such an application.
(4) An appeal to the High Court on a point of law from a determination of the Board under subsection (2) in relation to a scheme, may be brought by the person who made or a person who was entitled to make the application concerned under subsection (2) [not later than six months after the date of the determination by the Board].
39. Schemes may provide higher benefits
39.-(1) Nothing in the other provisions of this Part or in the Second Schedule shall be construed as precluding a scheme from providingbenefits, in lieu of preserved benefit or minimum contributory retirement benefit, on a higher scale, or payable at any earlier, or, at the request of the member of the scheme, at any later time or otherwise more favourably than is provided for under this Part:
Provided that-
(a) such benefits are of an actuarial value that is equivalent to or greater than that of preserved benefit,
(b) on the death of a member before any such benefit commences to be payable the amount thereof shall not be less than the amount that would, but for this section, have been payable by virtue of section 29(4) or 30(3), as appropriate,
(c) a member who is entitled to preserved benefit under this Part shall not be entitled to receive a refund of any contributions paid to the scheme in contravention of section 32,
(d) such benefits shall be provided to the same extent to or in respect of members whose service in relevant employment terminates as a consequence of their moving to another Member State as to or in respect of members whose service in relevant employment terminates for any other reason.
(2) Where a scheme provides benefits to or in respect of a member whose service in relevant employment terminates but who is not entitled to a preserved benefit under this Part, such benefits shall, be provided to the same extent to or in respect of members whose service in relevant employment terminates as a consequence of their moving to another Member State as to or in respect of members whose service in relevant employment terminates for any other reason.]
S.I. No. 177/2009 –
Occupational Pension Schemes (Duties of Trustees In Connection With Bulk Transfer) Regulations 2009
I, MARY HANAFIN TD, Minister for Social and Family Affairs, in exercise of the powers conferred on me by sections 5 (as amended by section 37 of the Social Welfare and Pensions Act 2007 (No. 8 of 2007), 59D and 59E (inserted by section 43 of the Pensions (Amendment) Act 2002 (No. 18 of 2002)) of the Pensions Act 1990 (No. 25 of 1990) (as adapted by the Social, Community and Family Affairs (Alteration of Name of Department and Title of Minister) Order 2002 ( S.I. No. 310 of 2002 )) hereby make the following regulations:
1. (1) These Regulations may be cited as the Occupational Pension Schemes (Duties of Trustees in Connection with Bulk Transfer) Regulations 2009,
(2) These Regulations come into operation on 1st August 2009.
2. In these Regulations—
“Act” means the Pensions Act 1990 ;
“actuarial funding certificate” has the meaning assigned to it in section 42 (as amended by the Pensions (Amendment) Act 2002 (No. 18 of 2002)) of the Act;
“authorised trade union” means a body of persons which is the holder of a negotiation licence issued under Part II of the Trade Union Act 1941 (No. 22 of 1941);
“benefit structure”, in relation to a scheme, means the method of calculating benefits under the scheme;
“discretionary benefit practice”, in relation to a scheme, means any custom or practice of granting additional benefits or increases in benefits under the scheme at the discretion of any person to the members generally or to any category of members—
(a) since the commencement of the scheme, or
(b) within the period of 5 years immediately preceding the date of the notification under Regulation 4,
whichever is the shorter period;
“funding standard” has the meaning assigned to it by section 40 (as amended by the Social Welfare Law Reform and Pensions Act 2006 (No. 5 of 2006)) of the Act;
“minimum transfer value”, in relation to benefits, means the value which would be placed on the benefit for the purpose of preparing an actuarial funding certificate;
“receiving scheme”, means the scheme under which the bulk transfer is to be received;
“receiving trustees” means the trustees of the receiving scheme;
“transferring members” means the members of the transferring scheme in respect of whom the bulk transfer is to be effected;
“transferring scheme” means the scheme, including a scheme that is being wound up, under which the bulk transfer is to be made;
“transferring trustees” means the trustees of the transferring scheme.
3. These Regulations apply to a bulk transfer from a scheme for which the consent of the members of the scheme, in respect of whom the transfer is to be effected, is not to be obtained, including a bulk transfer from such scheme which is being wound up.
4. (1) Before a bulk transfer to which these Regulations apply is effected, the transferring trustees shall, not less than 2 months before the day on which it is proposed to make that bulk transfer, notify, in writing, the transferring members and an authorised trade union, if any, representing the transferring members of the matters specified in paragraph (2),
(2) The transferring trustees, in the written notification referred to in paragraph (1), shall—
(a) specify the circumstances giving rise to the proposed bulk transfer,
(b) specify the benefit structures of the transferring scheme and the receiving scheme which are applicable to the transferring members including—
(i) the discretionary benefit practice, if any, and
(ii) the rules of the transferring scheme and the receiving scheme in relation to the treatment of surplus funds,
(c) where the bulk transfer is to receiving trustees, specify the benefits that are proposed to be granted to the transferring members in the receiving scheme,
(d) where the bulk transfer is to a Personal Retirement Savings Account, provide information relating to the class of, and specify the contributions that are proposed to be paid to, the proposed Personal Retirement Savings Account,
(e) provide information in respect of—
(i) any loss to, or other adverse effect on, the interests of the transferring members, and
(ii) charges and recurring charges to be paid by the transferring members,
arising from the bulk transfer,
(f) where the transferring scheme is a defined benefit scheme, provide a statement, signed by the actuary to the transferring scheme specifying the information referred to in paragraph (3),
(g) state that a transferring member or an authorised trade union, if any, representing the transferring members, may make written observations not later than 1 month after the date of the notification referred to in paragraph (1), on the proposed bulk transfer for the due consideration of the transferring trustees or to any employer to whose employment the transferring scheme applies and the name and address of the person to whom the written observations shall be sent,
(h) describe the procedures under Regulation 5 for the consideration of written observations made pursuant to paragraph (g).
(3) For the purposes of paragraph (2)(f), the following information shall be provided in the statement referred to in that paragraph—
(a) the manner in which—
(i) where the bulk transfer is to receiving trustees—
(I) the payments from the transferring scheme, and
(II) the benefits for the transferring members in the receiving scheme, or
(ii) where the bulk transfer is to Personal Retirement Savings Accounts, the contributions to be paid to Personal Retirement Savings Accounts for the transferring members,
are calculated and the manner in which discretionary benefit practices are provided for in those calculations;
(b) whether—
(i) the minimum transfer value of each transferring member in the receiving scheme, or
(ii) the value of the contributions that are proposed to be paid for each member to the Personal Retirement Savings Account,
will, immediately following the bulk transfer, be at least equal to the minimum transfer value of the benefits for the transferring member in the transferring scheme immediately before that bulk transfer;
(c) whether, if the receiving scheme were to be wound up immediately after the bulk transfer, the payment from the receiving scheme, which would be reasonably likely to be made for each transferring member in respect of the service covered by the bulk transfer would be at least equal to the payment from the transferring scheme which would be reasonably likely to be made for each transferring member in respect of the service covered by the bulk transfer on the assumption that the transferring scheme, if it is not already wound up or is not in the process of being wound up, is to be wound up immediately before the bulk transfer, having regard to—
(i) whether the transferring scheme satisfies the funding standard, if applicable, and
(ii) whether the receiving scheme satisfies the funding standard, if applicable;
(d) whether the ratio, immediately following the bulk transfer, of the resources of the receiving scheme, referred to in paragraph (4), to the liabilities of the receiving scheme, referred to in paragraph (4), is reasonably likely to be at least equal to the ratio, immediately before the bulk transfer, of the resources of the transferring scheme, referred to in paragraph (4), to the liabilities of the transferring scheme, referred to in paragraph (4);
(e) the calculations and assumptions used by the actuary of the transferring scheme for the purposes of these Regulations.
(4) For the purposes of the ratio referred to in paragraph (3)(d)—
(a) the resources of—
(i) the receiving scheme, and
(ii) the transferring scheme,
shall be the resources calculated for the purposes of section 44 (as amended by the Social Welfare and Pensions Act 2008 (No. 2 of 2008)) of the Act,
and
(b) the liabilities of—
(i) the receiving scheme, and
(ii) the transferring scheme,
shall be the liabilities referred to in section 44 (as amended by the Social Welfare and Pensions Act 2008 ) of the Act.
(5) The receiving trustees shall provide information to the transferring trustees in relation to the receiving scheme as the transferring trustees require for the purposes of the provision of information under paragraph (1) and, as the case may be, paragraph (7).
(6) Where the transferring trustees have notified the persons referred to in paragraph (1), the transferring trustees shall take all steps reasonably open to them to satisfy themselves that there are not material alterations in the proposal for the bulk transfer between the date of the notification under paragraph (1) and the proposed date for the bulk transfer.
(7) Where, pursuant to paragraph (6), the transferring trustees are satisfied that there has been a material alteration relating to the proposed bulk transfer, the transferring trustees shall-
(a) revise, or cause to be revised, as soon as possible, the information provided pursuant to paragraph (1) having regard to such material alteration, and
(b) notify, in writing, the persons referred to in paragraph (1), as soon as possible, of the following:
(i) the material alterations to the proposed bulk transfer;
(ii) the information referred to in paragraphs (2), (3) and (4) as it has been revised in accordance with subparagraph (a) and, where applicable, revised actuarial statements;
(c) state that a transferring member or authorised trade union, if any, representing the transferring members, may make written observations, not later than 1 month after the date of the notification made pursuant to this paragraph on the proposed bulk transfer for the due consideration of the transferring trustees or to any employer to whose employment the transferring scheme applies and the name and address of the person to whom the written observations shall be sent.
5. (1) Before a bulk transfer to which these Regulations apply is effected, the transferring trustees, or an employer to whose employment the transferring scheme applies, shall for the purposes of giving due consideration to the observations made pursuant to Regulation 4, consider the observations—
(a) which have been made by the latest date on which, in accordance with—
(i) Regulation 4(2)(g), or
(ii) Regulation 4(7)(c),
such observations are to be made;
(b) for a period of not less than 1 month from the latest date, referred to in paragraph (a), on which such observations are to be made.
(2) Having considered the observations in accordance with paragraph (1)—
(a) where due consideration of those observations is to be given by the transferring trustees, the transferring trustees shall state, in writing, that they have considered the observations in accordance with paragraph (1), or
(b) where due consideration of those observations is to be given by the employer, the employer shall notify the transferring trustees in writing that the employer has considered the observations in accordance with paragraph (1),
before the bulk transfer to which these Regulations apply is effected.
6. (1) For the purposes of notifying a transferring member under Regulation 4, the transferring trustees shall address the notification to a transferring member and send it to him or her by post to the address which has been furnished to the transferring trustees by, or on behalf of, the transferring member to whom it is addressed,
(2) For the purposes of these Regulations, a notification which is sent to a transferring member in accordance with paragraph (1) shall be treated as complying with the notification of a transferring member under Regulation 4,
(3) Where the transferring trustees have, and an employer has, taken all steps reasonably open to them, or to him or her, to comply with Regulation 5 and the transferring trustees do not, or an employer does not, receive a written observation made pursuant to Regulation 4(2)(g) or, where appropriate, Regulation 4(7)(c) within the period, referred to in Regulation 5(1)(a), for making those observations, the failure to consider such written observation shall not be treated as a failure to comply with Regulation 5.
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GIVEN under my Official Seal,
7 May 2009
MARY HANAFIN.
Minister for Social and Family Affairs.
EXPLANATORY NOTE
(This note is not part of the Statutory Instrument and does not purport to be a legal interpretation.)
These regulations prescribe the dutles of trustees effecting a bulk transfer from a pension scheme (including on the wind-up of a scheme) for which the consent of members is not required.
The regulations outline the notice that must be given, in writing, advising scheme members that the bulk transfer is to take place, and prescribe what information must be contained in this advice.
This regulations also prescribe how observations may be made by, or on behalf of scheme members, and that such observations, received within a specified timeframe must be considered by the trustees of the scheme and/or the employer as appropriate.
630/2021 –
Occupational Pension Schemes (Duties of Trustees in Connection with Bulk Transfer) (Amendment) Regulations 2021
I, HEATHER HUMPHREYS T.D., Minister for Social Protection in exercise of the powers conferred on me by section 5 (as amended by section 37 of the Social Welfare and Pensions Act 2007 (No. 8 of 2007), section 59D and section 59E (inserted by section 43 of the Pensions (Amendment) Act 2002 (No. 18 of 2002)) of the Pensions Act 1990 (No. 25 of 1990) (as adapted by the Employment Affairs and Social Protection (Alteration of Name of Department and Title of Minister) Order 2020 ( S.I. No. 447 of 2020 )), hereby make the following Regulations:
Citation and Construction
1. These Regulations may be cited as the Occupational Pension Schemes (Duties of Trustees in Connection with Bulk Transfer) (Amendment) Regulations 2021.
2. These Regulations and the Occupational Pension Schemes (Duties of Trustees In Connection With Bulk Transfer) Regulations 2009 shall be construed together as one and may be cited as the Occupational Pension Schemes (Duties of Trustees In Connection with Bulk Transfer) Regulations 2009 to 2021.
Amendment to regulations
3. The Occupational Pension Schemes (Duties of Trustees In Connection With Bulk Transfer) Regulations 2009 ( S.I. No. 177 of 2009 ) are amended —
(a) in Regulation 4 in sub-article (1) —
(i) by the substitution of “not less than 1 month” for “not less than 2 months”,
(ii) by the substitution of “specified in paragraph (2).” for “specified in paragraph (2),”
(b) in Regulation 5 in sub-article (1) —
(i) in paragraph (a) by the substitution of “such observations are to be made.” for “such observations are to be made;”
(ii) by the deletion of paragraph (b).
(c) in Regulation 6 —
(i) in sub-article (1), by the substitution of “to whom it is addressed or by means of any electronic method.” for “to whom it is addressed,”
(ii) by inserting the following after sub-article (1):
“For the purposes of Regulation 6(1), where the transferring trustees are not in possession of and, following all reasonable steps, cannot ascertain an address for any transferring member or members of the transferring scheme, and cannot send the notification to such member or members by means of any electronic method, the trustees shall publish a notice in a national newspaper to the effect that a bulk transfer from the transferring scheme is proposed and detailing the name and contact details of the person to whom a request may be sent, within 7 days of the date of publication of the notice for information on the matters specified in regulation 4(2) or, as the case may be, regulation 4(7).”
(iii) in sub-article (2) —
I. by the insertion of “or a notice in a national newspaper in accordance with paragraph (1A)” after “paragraph (1)”.
II. In sub-article (2), by the substitution of “under Regulation 4.” for “under Regulation 4,”.
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GIVEN under my Official Seal,
25 November, 2021.
HEATHER HUMPHREYS T.D.,
Minister for Social Protection.
EXPLANATORY NOTE
(This is not part of the Statutory Instrument and does not purport to be a legal interpretation.)
These Regulations amend the Occupational Pension Schemes (Duties of Trustees In Connection With Bulk Transfer) Regulations 2009. The provisions in respect of consideration of member observations by trustees has been amended to allow for due consideration by trustees before a final decision is made. The means of notification has been broadened to allow for communication by electronic means and the means of notifying untraceable deferred members has been broadened to allow for publication in a national newspaper.
S.I. No. 127/2022 –
Occupational Pension Schemes (Revaluation) Regulations 2022
I, HEATHER HUMPHREYS, Minister for Social Protection (as adapted by the Employment Affairs and Social Protection (Alteration of Name of Department and Title of Minister) Order 2020 ( S.I. No. 447 of 2020 )), in exercise of the powers conferred on me by sections 5 and 33 (as amended by section 23 of the Social Welfare and Pensions Act 2012 (No. 12 of 2012)) of the Pensions Act 1990 (No. 25 of 1990), and having consulted with the Minister for Public Expenditure and Reform, hereby make the following Regulations:
Citation
1. These Regulations may be cited as the Occupational Pension Schemes (Revaluation) Regulations 2022.
Rate of Revaluation of Preserved Benefit
2. In accordance with Section 33 of the Pensions Act there shall be a 2.4% revaluation of preserved benefits for 2021.
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GIVEN under my Official Seal,
10 March, 2022.
HEATHER HUMPHREYS,
Minister for Social Protection.
EXPLANATORY NOTE
(This note is not part of the Instrument and does not purport to be a legal interpretation.)
These Regulations provide for changes in the percentage by which the amount of a preserved benefit is to be increased or decreased in a specified year.
There shall be a 2.4% revaluation of preserved benefits under section 33 of the Pensions Act, 1990 , for 2021.