Proposals for amendments to the Pensions Act
Proposals for amending the Pensions Acts 1990-2006 (“the Act”) in 2007 (by inclusion of statutory requirements in the Social Welfare and Pensions Bill, 2007 and underlying Regulations) are set out in Tables 1 and 2 below, for information purposes:-
Table 1 – Proposal to regulate trust based Retirement Annuity Contracts (RACs)
|Product||Proposal to apply the Pensions Act to trust based RACs|
|Large* trust based insured RAC||It is proposed to apply the minimum requirements of Directive 2003/41 EC on the activities and supervision of institutions for occupational retirement provision to large trust based RACs by amending the Pensions Act to include these trusts.|
Large* trust based self administered RAC
|It is proposed to apply the minimum requirements of Directive 2003/41 EC on the activities and supervision of institutions for occupational retirement provision to large trust based RACs by amending the Pensions Act to include these trusts|
|Small** trust based insured RAC||It is proposed that the Pensions Act would be amended to permit the Board to investigate such schemes and that the provisions of section 59 of the Pensions Act would apply to small trust based insured RACs.|
|Small** trust based self administered RAC||It is proposed that the Pensions Act would be amended to permit the Board to investigate such schemes and that the provisions of section 59 of the Pensions Act would apply to small trust based self administered RACs.|
*A large trust based RAC has one hundred or more members including deferred members.
**A small trust based RAC has less than one hundred members including deferred members.
Table 2 – Additional proposals
|Provision of the Act which the Pensions Board is proposing to have amended.||Proposal for amendment.
|It is proposed that there be a 21 day time limit on the right of appeal against a determination by the Pensions Board.|
||It is proposed that the sub section be clarified to make it clear the Occupational Pension Schemes (Trustee) Regulations 2006 can specify the qualifications and experience of the scheme advisers for the purposes of investment activities as well as the trustees themselves.|
|S149 and S150||It is proposed that these sections be amended to make it clear that the conditions of authorisation to carry out cross-border activities are ongoing, and that the Board may revoke an authorisation if the conditions fail to be complied with on a continuing basis.|
|S16(4)||A textual amendment is proposed to make it clear that the term “functions” referred to in section 16(4) mean “function(s)” as defined in section 2.|
|S54||It is proposed that section 54 be amended so that the Board can request such information as may be prescribed concerning the administration and finances of the scheme from the scheme actuary.|
|S50(2)(a)||A textual amendment is proposed, so that the reference in section 50(2) (a) to subparagraph 1(2) of the Second Schedule be substituted by a reference to subparagraph 2(2) of the Second Schedule, the intended subparagraph.|
|S50||It is proposed that section 50 be amended to allow the Board direct a reduction in the benefits of some or all of the members in certain very limited circumstances so that the scheme would meet the funding standard at the end of the period for which a funding extension has been granted.|
|S104(11)||It is proposed that this sub section would be amended so that there would no longer be a requirement for a PRSA provider to give prior notice of a reduction in charges.|