PRSA Disclosure
Pensions Act
Marketing and sale of PRSAs
110-(1) A Standard PRSA shall not be marketed or sold in such a manner as makes the entering into of a contract in respect of it dependent on any other product being purchased.
(2) No document relating to the marketing or sale of a Standard PRSA may solicit the purchase of, or otherwise advertise any other product.
(3) The Minister may by regulations enable the Board to impose such conditions or requirements on a PRSA provider in respect of advertising by the provider of its activities as such a provider as the Board considers necessary in the interests of –
(a) the orderly and proper regulation and supervision of PRSA providers, or
(b) the protection of contributors.]
111.
Preliminary disclosure certificate
111-(1) Before offering to enter into a PRSA contract with a person, a PRSA provider shall furnish to that person a certificate (which shall be known and is in this Act referred to as a ‘preliminary disclosure certificate’).
(2) A preliminary disclosure certificate shall specify the benefits and the level of them which the person referred to in subsection (1) could reasonably expect to receive from the PRSA concerned on the expiration of a period specified in the regulations made by the Minister for the purposes of this section and calculated in accordance with those regulations on the basis of projected contributions to be made during the said period and otherwise on the basis of assumptions specified in the regulations.
(3) A PRSA contract shall not be enforceable against a person until a period of [30 days] has elapsed from the date on which the PRSA provider has given to that person a Statement of Reasonable Projection in accordance with section 112(2)(a).
(4) The Minister may make regulations requiring a PRSA provider to make, in accordance with the regulations, full disclosure to the person referred to in subsection (1) and contributors of all potential and actual commissions payable and other charges payable by contributors in respect of aPRSA product, other than a Standard PRSA, provided by the PRSA provider.
(5) Each person who provides a service to a PRSA provider with respect to its business of providing PRSA products (including each person referred to in section 96(1)) shall furnish to the PRSA provider such information in relation to commissions and expenses charged by him in relation to the provision of that service as is necessary to enable the PRSA provider to comply with its obligations under subsection (4).]
[(6) The Minister may make regulations providing that some or all of the following information shall be provided by a PRSA provider or intermediary to the person referred to in subsection (1) and contributors before the conclusion of the PRSA contract concerned:
(a) whether the PRSA contract replaces, in whole or in part, an existing PRSA contract or retirement annuity contract with the PRSA providerconcerned or any other PRSA provider or insurer which has been or is to be cancelled or in respect of which any benefit or cover has been or is to be reduced;
(b) where an existing PRSA contract or retirement annuity contract has been or is to be cancelled or any benefit or cover has been or is to be reduced, the financial con-sequences, if any, for the contributor.
(7) In this section, ‘insurer’ has the meaning assigned to it by section 2 of the Insurance Act 1989.
(8) The Minister may make regulations providing that some or all of the information contained in a preliminary disclosure certificate or required to be disclosed in accordance with subsection (6) shall be prepared in accordance with-
(a) the advice of the PRSA actuary, and
(b) any guidance notes issued by the Society of Actuaries in Ireland for that purpose.]
112.
Obligation to furnish Statements of Reasonable Projection
112-(1) A PRSA provider shall furnish to the contributor to a PRSA operated by it a Statement of Reasonable Projection –
(a) annually (and a statement under this paragraph shall be in printed and no other form),
(b) subject to subsection (3), at any time on being requested by the contributor to do so, and
(c) on the happening of any of the events referred to in subsection (2).
(2) The events referred to in subsection (1)(c) are –
(a) the entry by the person referred to in section 111(1) into a PRSA contract with the provider, and
(b) an increase in the number or amounts of charges that may be made under the PRSA contract concerned.
(3) A PRSA provider shall not be obliged to comply with a request under subsection (1)(b) unless the contributor concerned gives reasonable notice to him of the request but the provider may not require more than 7 days’ notice for this purpose.
(4) Where a Statement of Reasonable Projection falls to be furnished by virtue of subsection (1)(c), it shall be furnished to the contributor concerned within 7 days from the happening of the event concerned referred to in subsection (2).
(5) The Minister may by regulations require a PRSA provider to provide a Statement of Reasonable Projection to a contributor on the happening of a specified event (not being an event referred to in subsection (2)).
113.
Disclosure before transfer from a scheme to a PRSA
113-(1) Subject to [subsections (3) and (6)], a PRSA provider shall not accept the transfer of funds from a scheme to the PRSA which that PRSA provideroperates unless it has previously ensured that there has been furnished by it, or an intermediary on its behalf, to the person wishing to make such a transfer (that is to say, the member of the scheme) –
(a) a certificate setting out a comparison of the benefits which may accrue from the scheme and which may accrue from the PRSA, and
(b) a written statement of the reasons why such a transfer is or is not in the interest of the person wishing to make such a transfer.
(2) The trustees of the scheme referred to in [paragraph (a) of subsection (1)] shall, at the request of the person referred to in that subsection, furnish to that person or the PRSA provider referred to in that subsection a statement of the benefits which may accrue from the scheme in respect of that person.
(3) [Subsection (1)] shall not apply to a transfer –
(a) of a sum less than [€10,000], or
(b) which represents a return of contributions, or the value of accrued benefits, to a member who has less than two years’ service in the employment in respect of which the scheme was operative and has no preserved benefit.
(4) The Minister may by regulations prescribe the form of the certificate referred to in subsection (1)(a) and the statement referred to in subsection (1)(b) and the requirements to be satisfied before such a certificate or statement may be furnished under that subsection which shall include a requirement that the person preparing such certificate or statement has such professional indemnity insurance as shall be specified in the regulations.]
[(5) Without prejudice to the generality of subsection (4), regulations under that subsection may prescribe-
(a) that some or all of the information contained in a certificate referred to in sub-section (1)(a) and the statement referred to in subsection (1)(b) shall be prepared in accordance with-
(i) the advice of the PRSA actuary, and
(ii) any guidance notes issued by the Society of Actuaries in Ireland for that purpose,
and
(b) that some or all of the information contained in the statement of the benefits to be furnished by trustees under subsection (2) shall be prepared in accordance with-
(i) the advice of the scheme actuary, in the case of a defined benefit scheme, and
(ii) any guidance notes issued by the Society of Actuaries in Ireland for that purpose.]
[(6) This section does not apply to a scheme the winding-up of which has been notified to the Board in accordance with Article 14 of the Occupational Pension Schemes (Disclosure of Information) (No. 2) Regulations 1998 (S.I. No. 349 of 1998).]
114.
General disclosure obligations
114-(1) A PRSA provider shall give to the contributor to a PRSA operated by it, at intervals of not greater than 6 months’ duration, a statement of account in printed and no other form specifying, as at the date of preparation of the statement –
(a) the total contributions credited to the contributor by the PRSA provider since the PRSA contract was entered into by him, and
(b) where a previous statement of account under this subsection has been given to the contributor, the total contributions credited to thecontributor by the PRSA provider during the period between the date of preparation of the last previous such statement and the date of preparation of the current statement.
(2) A statement of account given in accordance with subsection (1) shall, where appropriate, differentiate between contributions paid by theemployee and those paid by his employer.
(3) A statement of account given pursuant to subsection (1) shall state the value of the PRSA on the date of preparation of the statement.
(4) A PRSA provider shall furnish a report, at intervals of not greater than 6 months’ duration, to the contributors on the performance of all investment funds in which the moneys of the said contributors’ contributions are invested.
(5) In subsection (3) ‘value of the PRSA’ means the amount of money that would be available to the contributor concerned for transfer out of thePRSA on the date of preparation of the statement concerned.]
115. Power of Minister to prescribe information to be disclosed
115 The Minister may by regulations –
(a) prescribe the form and contents of a Statement of Reasonable Projection,
(b) as respects any obligation imposed by or under this Part to disclose information (other than in the form of such a statement), where not otherwise specified therein, prescribe –
(i) the type of information which must be disclosed to a contributor,
(ii) the format in which information must be disclosed,
(iii) the manner of its disclosure,
(iv) the periods within which such disclosure must be made,
(v) the persons to whom such disclosure must be made, and
(vi) the persons who may be obliged to make such disclosure,
(c) provide that the requirements of this Part in relation to the disclosure of information shall not apply, or shall only apply to a specified extent, in respect of a Standard PRSA.]
116.
Statement of Reasonable Projection
116-(1) In this Part ‘Statement of Reasonable Projection’ means a statement prepared by a PRSA provider for a PRSA contributor which specifies the level of benefit which could reasonably be expected at a specified date or dates to be payable under the contributor’s PRSA contract based on the value of the PRSA at the date of the statement and using such assumptions as to future contributions and investment returns as may be specified inregulations.
(2) A Statement of Reasonable Projection shall contain such warnings as are prescribed for the benefit of a potential or actual contributor to a PRSA.
(3) A Statement of Reasonable Projection shall advise a potential or actual contributor to a PRSA of the importance of making adequate financial provision for retirement and of obtaining appropriate financial advice in that regard.
(4) A Statement of Reasonable Projection shall include a statement of the value, at the date of the preparation of the statement, of the old age (contributory) pension, within the meaning of Chapter 12 of Part II of the Social Welfare (Consolidation) Act, 1993, as a percentage of earnings of a typical employee calculated in such manner as may be specified in regulations.]
[(5) The Minister may by regulations prescribe that some or all of the information contained in a Statement of Reasonable Projection shall be pre- pared in accordance with-
(a) the advice of the PRSA actuary, and
(b) any guidance notes issued by the Society of Actuaries in Ireland for that purpose.]