bille na bpinsean (leasu´ ), 2001 pensions (amendment

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BILLE NA bPINSEAN (LEASU), 2001PENSIONS (AMENDMENT) BILL, 2001

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Mar a leasaıodh sa Roghchoiste um Ghnothaı Teaghlaigh, Pobailagus Soisialacha

As amended in the Select Committee on Family, Community andSocial Affairs

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ARRANGEMENT OF SECTIONS

PART 1

Preliminary and General

Section1. Short title, collective citation, construction and com-

mencement.

2. Definitions.

PART 2

Personal Retirement Savings Accounts

3. Insertion of Part X in Principal Act.

4. Amendment of Taxes Consolidation Act, 1997.

PART 3

Pensions Ombudsman

5. Insertion of Part XI in Principal Act.

PART 4

Amendments of Existing Provisions of Principal Act

Chapter 1

Amendments to Part 1 of Principal Act

6. Amendment of section 2(1) of Principal Act.


8. Further amendment of section 3 of Principal Act.

[No. 45c of 2001]

2

Section9. Amendment of section 4 of Principal Act.


11. Amendment of section 5B of Principal Act.

12. Provision in relation to professional guidance issued bySociety of Actuaries in Ireland.

Chapter 2

Amendments to Part II of Principal Act


14. Amendment of section 18 of Principal Act.

Chapter 3

Amendments to Part III of Principal Act

15. Amendment of Part III (title thereof) of Principal Act.








23. Contributory retirement benefit for persons leaving schemesafter 1 June 2002.




Chapter 4

Amendments to Part IV of Principal Act







Section33. Amendment of section 48 of Principal Act.


Chapter 5

Amendments to Part V of Principal Act

35. Amendment of Part V (title thereof) of Principal Act.




39. Indexation of pensions under certain schemes to be con-sidered by trustees.


41. Obligation of employer to remit contributions under scheme.

Chapter 6

Amendments to Part VI of Principal Act


43. Certain duties of trustees with respect to windings-up andbulk transfers and invalidity of certain acts.


Chapter 7

Amendment to Part VII of Principal Act


Chapter 8

Amendments to Part VIII of Principal Act





Chapter 9

Amendments to Schedules to Principal Act

50. Amendment of First Schedule to Principal Act.

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Section51. Amendment of Second Schedule (title thereof) to Principal

Act.

52. Amendment of Part A of Second Schedule to Principal Act.

53. Amendment of Part B of Second Schedule to Principal Act.

54. Insertion of Part C in Second Schedule to Principal Act.

55. Amendment of Third Schedule to Principal Act.

PART 5

Amendments of Miscellaneous Other Enactments and Saving

56. Amendment of Social Welfare (Consolidation) Act, 1993.

57. Pension adjustment orders.

58. Non-application of Ombudsman Act, 1980, in relation tomatters cognisable under Part XI of Principal Act.

59. Saving.

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Acts Referred to

Civil Service Commissioners Act, 1956 1956, No. 45Civil Service Regulation Act, 1956 1956, No. 46Civil Service Regulation Acts, 1956 and 1958Companies Act, 1963 1963, No. 33Companies Act, 1990 1990, No. 33Companies Acts, 1963 to 2001Courts Act, 1981 1981, No. 11Employment Agency Act, 1971 1971, No. 27European Parliament Elections Act, 1997 1997, No. 2Family Law Act, 1995 1995, No. 26Family Law (Divorce) Act, 1996 1996, No. 33Finance Act, 1972 1972, No. 19Finance Act, 2000 2000, No. 3Finance Act, 2001 2001, No. 7Insurance Act, 1989 1989, No. 3Investment Intermediaries Act, 1995 1995, No. 11Investment Limited Partnerships Act, 1994 1994, No. 24Local Government Act, 1941 1941, No. 23Local Government Act, 2001 2001, No. 37Ombudsman Act, 1980 1980, No. 26Payment of Wages Act, 1991 1991, No. 25Pensions Act, 1990 1990, No. 25Pensions (Amendment) Act, 1996 1996, No. 18Protection of Employees (Employers’ Insolvency) Act, 1984 1984, No. 21Protection of Employees (Part-Time Work) Act, 2001 2001, No. 45Social Welfare Act, 1993 1993, No. 5Social Welfare Act, 2000 2000, No. 4Social Welfare (Consolidation) Act, 1993 1993, No. 27Stock Exchange Act, 1995 1995, No. 9Taxes Consolidation Act, 1997 1997, No. 39Unit Trusts Act, 1990 1990, No. 37

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BILLE NA bPINSEAN (LEASU), 2001PENSIONS (AMENDMENT) BILL, 2001

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BILLentitled

AN ACT TO AMEND AND EXTEND THE PENSIONS ACT,51990, AND TO PROVIDE FOR RELATED MATTERS.

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART 1

Preliminary and General

1.—(1) This Act may be cited as the Pensions (Amendment) Act,102002.

(2) The Principal Act, the Pensions (Amendment) Act, 1996, andthis Act may be cited together as the Pensions Acts, 1990 to 2002,and shall be construed together as one.

(3) This Act shall come into operation on such day or days as the15Minister may appoint by order or orders either generally or withreference to any particular purpose or provision and different daysmay be so appointed for different purposes or different provisions.

(4) Without prejudice to the generality of the foregoing, differentdays may be so appointed for the coming into operation of section 320of this Act as respects different provisions of the Part inserted in thePrincipal Act by that section.

2.—In this Act—

‘‘Minister’’ means the Minister for Social, Community and FamilyAffairs;25

‘‘Principal Act’’ means the Pensions Act, 1990.

PART 2


3.—The Principal Act is amended by the insertion of the followingPart after Part IX—30

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Short title,collective citation,construction andcommencement.

Definitions.

Insertion of Part Xin Principal Act.

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‘‘Part X


Interpretation 91.—(1) In this Part, unless the context other-(Part X).

wise requires—

‘administrator’ means a person to whom a PRSA 5provider delegates in pursuance of this Part itsadministrative functions in relation to a PRSA;

‘applicant’ means a person who applies forapproval of a PRSA product under section 94;

‘Central Bank’ means the Central Bank of 10Ireland;

‘charges’ includes—

(a) fees, levies or penalties imposed by thePRSA provider;

(b) fees, levies or penalties imposed or made 15on or in relation to any pooled fundheld for the purposes of a PRSA andon or in relation to any pooled fundheld within such a pooled fund;

(c) the net proceeds of the process com- 20monly known as stocklending(involving the sale of assets with anagreement for repurchase) of theassets held (including those heldwithin any pooled fund and any 25pooled fund held within such a pooledfund) for the purposes of a PRSA thatdo not accrue to the PRSA con-tributor;

(d) the proceeds of any rounding of unit 30prices of the pooled funds held for thepurposes of a PRSA and on anypooled fund held within those pooledfunds that do not accrue to the PRSAcontributor; 35

(e) any deductions from the assets to meetthe costs of auditors or custodians,including such deductions from theassets of the pooled funds held for thepurposes of a PRSA and from any 40pooled fund held within those pooledfunds;

(f) any value-added tax on the charges;

(g) the costs of transactions in investments(including transactions of investments 45held within any pooled fund and anypooled fund held within those pooledfunds) that are incurred in excess ofthose that would be incurred on acompetitive arm’s length basis; 50

(h) any reduction in the interest ratereceived on deposits or investmentreturn obtained on other assets belowthat which would be obtainable on acompetitive arm’s length basis from5other comparable deposits or assets;

(i) any deduction from the PRSA assets ora contribution for the benefit of thePRSA provider, any intermediary,including an investment business firm10authorised under the InvestmentIntermediaries Act, 1995, or a mem-ber firm authorised under the StockExchange Act, 1995, or the employer;

(j) the charges on any insurance contract15held as a PRSA asset that would beincluded within illustrations of pro-jected benefits produced in accord-ance with the Life Assurance(Provision of Information) Regu-20lations 2001 (S.I. No. 15 of 2001);

(k) such amounts in respect of such othermatters as may be prescribed;

but does not include—

(i) any stamp duty or other similar turnover25taxes or levies imposed by or underany enactment that have beencharged or made in relation to thepurchase or sale of investments;

(ii) any irrecoverable withholding taxes on30investment income;

(iii) any fees or levies imposed by or underany enactment that are deducted fromthe assets of the PRSA contributor orfrom the assets of the pooled funds35held for the purposes of a PRSA andfrom any pooled fund held withinthose pooled funds;

(iv) the costs of transactions in investments(including those held within any40pooled fund and any pooled fund heldwithin those pooled funds) that areincurred on a competitive arm’slength basis;

(v) the costs of routine property mainten-45ance and collection of rents due inrespect of property investments(including those held within anypooled fund and any pooled fund heldwithin those pooled funds) incurred50on a competitive arm’s length basis;

(vi) where an insurance contract is held as aPRSA asset, any deductions madesolely for the purposes of smoothingthe investment returns allocated to55individual policies;

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(vii) such amounts in respect of such othermatters as may be prescribed;

and ‘charge’ shall have a similar meaning;

‘collective investment scheme’ means—

(a) a unit trust scheme authorised by the 5Central Bank under the Unit TrustsAct, 1990;

(b) a designated investment company auth-orised by the Central Bank under PartXIII of the Companies Act, 1990; 10

(c) a collective investment scheme author-ised by the Central Bank under theEuropean Communities (Undertakingsfor Collective Investment in Transfer-able Securities) Regulations 1989 (S.I. 15No. 78 of 1989);

(d) a collective investment scheme estab-lished in another Member State thathas been authorised in accordancewith Council Directive 85/611/EEC of 2020 December 1985;

(e) the business of an investment limitedpartnership established under theInvestment Limited Partnerships Act,1994; or 25

(f) any other collective investment schemeestablished in another state, the mar-keting of the units of which tomembers of the public in the State isapproved by the Central Bank; 30

but does not include a collective investmentscheme that is marketed solely to investors ofsuch class or classes as may be determined by theCentral Bank;

‘contribution’ means a payment made directly or 35indirectly by or on behalf of a contributor to therelevant custodian account of a PRSA providerfor investment on the contributor’s behalf inaccordance with the terms of a PRSA contract;

‘contributor’ means an individual who enters into 40a PRSA contract with a PRSA provider and shallinclude an individual in whose name a PRSA con-tract is concluded by the trustees of a scheme forthe purpose of distributing the appropriate assetsof the scheme on a winding-up; 45

‘Court’ means the High Court;

‘credit institution’ means a credit institutionwithin the meaning of Article 1 of Directive2000/12/EC of the European Parliament and ofthe Council of 20 March 2000, relating to the tak- 50ing up and pursuit of the business of creditinstitutions;

‘custodian’ means—

(a) a credit institution authorised to carry onbusiness in the State with a paid-upshare capital of at least \6.35 millionor its equivalent in foreign currency;or5

(b) a branch, established in the State, of acredit institution with a paid-up sharecapital of at least \6.35 million or itsequivalent in foreign currency; or

(c) a company incorporated in the State10which—

(i) is wholly owned by a credit insti-tution provided the liabilities ofthe custodian are guaranteed bythe said credit institution and the15said credit institution has paid-upshare capital of at least \6.35million or its equivalent in a for-eign currency; or

(ii) is wholly owned by an institution20in a state other than a MemberState which is deemed by theCentral Bank to be the equiv-alent of a credit institution towhich the Directive would apply,25provided the liabilities of the cus-todian are guaranteed by the saidinstitution and the said institutionhas a paid-up share capital of atleast \6.35 million or its equiv-30alent in a foreign currency; or

(iii) is wholly owned by an institutionor company either in a MemberState or in a state other than aMember State which is deemed35by the Central Bank to be aninstitution or company whichprovides contributors with pro-tection equivalent to that pro-vided by a custodian under para-40graph (a) or (b) of this definitionor subparagraph (i) or (ii) of thisparagraph and provided the liab-ilities of the company acting ascustodian are guaranteed by the45said institution or company andthat institution or company has apaid-up share capital of at least\6.35 million or its equivalent ina foreign currency,50

and which receives and holds the assets of Per-sonal Retirement Savings Accounts by virtue ofa custodian contract;

‘custodian account’ means a financial arrange-ment under which a custodian keeps in its custody55the cash, securities and other assets (other than

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assets consisting of a policy of insurance or unitsor shares in a collective investment scheme) beingall the cash, securities and other assets that havebeen remitted under a PRSA contract to the cus-todian (and, for the purposes of this Part, a cus- 5todian account may include the use by the custod-ian of other financial institutions, sub-custodiansor nominees for the safekeeping of the said cash,securities and other assets);

‘custodian contract’ means a contract concluded 10between a PRSA provider and a custodianwhereby contributions and all other assets of aPRSA (other than assets consisting of a policy ofinsurance or units or shares in a collective invest-ment scheme) are transmitted to the custodian to 15hold on behalf of the PRSA provider;

‘default investment strategy’ means an invest-ment strategy established by a PRSA provider, inaccordance with section 103, for the investmentof the contributions of contributors; 20

‘investment manager’ means—

(a) an investment firm authorised in accord-ance with Council Directive93/22/EEC of 10 May 1993 by a com-petent authority where the firm’s 25authorisation permits it to engage inthe proposed activities as an invest-ment manager under this Part; and

(b) an insurance undertaking authorised totransact insurance business in the 30State, whether by establishment,branch or provision of services, thatfalls within any of the Classes ofInsurance I, III or VII as set out inthe Annex to the Council Directive 3579/267/EEC of 5 March 1979; and

(c) a credit institution,

and to whom a PRSA provider has by contractdelegated in whole or in part its investment func-tions under this Part (but such delegation shall, 40in the case of an undertaking referred to in para-graph (b) of this definition, be restricted to activi-ties comprising the effecting and carrying out oflife assurance policies);

‘payroll deduction’ means a deduction from the 45salary or wages of an employee for the purposesof making contributions in respect of theemployee to a PRSA;

‘Personal Retirement Savings Account’ or‘PRSA’ means a personal retirement savings 50account established by a contributor with a PRSAprovider under the terms of a PRSA contract;

‘Personal Retirement Savings Account actuary’or ‘PRSA actuary’ means a person who isemployed by a PRSA provider or has enteredinto a contractual arrangement with a PRSA pro-vider to provide actuarial services in respect of a5PRSA product or products and who complieswith such requirements for such employment orsuch appointment as such an actuary as the Mini-ster may determine from time to time and speci-fies in regulations;10

‘Personal Retirement Savings Account assets’ or‘PRSA assets’ means the assets held on behalf ofa contributor in a PRSA and includes the valueof any contributions made to that PRSA by anyemployer of the contributor;15

‘Personal Retirement Savings Account contract’or ‘PRSA contract’ means a contract entered intobetween a PRSA provider and a contributor inrespect of a PRSA product which contract com-plies with this Part;20

‘Personal Retirement Savings Account product’or ‘PRSA product’ has the meaning assigned toit by section 102;

‘Personal Retirement Savings Account provider’or ‘PRSA provider’ means—25

(a) an investment firm authorised in accord-ance with Council Directive93/22/EEC of 10 May 1993 by a com-petent authority where the firm’sauthorisation permits it to engage in30the proposed activities as such a pro-vider under this Part; and

(b) an insurance undertaking authorised totransact insurance business in theState, whether by establishment,35branch or provision of services, thatfalls within any of the Classes ofInsurance I, III or VII as set out inthe Annex to the Council Directive79/267/EEC of 5 March 1979; and40

(c) a credit institution,

which produces, markets or sells Personal Retire-ment Savings Account products;

‘pooled fund’ means—

(a) a collective investment scheme; or45

(b) an internal linked fund the benefit ofwhich is made available by means of acontract of insurance of an insuranceundertaking authorised to transactinvestment business in the State,50whether by establishment, branch, orprovision of services, that falls within

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Class III as set out in the Annex tothe Council Directive 79/267/EEC of5 March 1979;

‘Standard Personal Retirement Savings Account’or ‘Standard PRSA’ means a PRSA expressed, in 5the PRSA contract relating to it, to be a ‘Stan-dard Personal Retirement Savings Account’ or‘Standard PRSA’;

‘Statement of Reasonable Projection’ has themeaning assigned to it by section 116. 10

(2) Without prejudice to subsection (5), anotice, direction or other document under thisPart or regulations made thereunder shall, unlessotherwise specified in this Part or the regulationsconcerned and subject to subsection (3), be 15addressed to the person concerned by name andmay be served on or given to the person in oneof the following ways—

(a) by delivering it to the person, or

(b) by leaving it at the address at which the 20person ordinarily resides or, in a casein which an address or a service hasbeen furnished, at that address, or

(c) by sending it by post in a prepaid letterto the address at which the person 25ordinarily resides or, in a case inwhich an address or a service has beenfurnished, to that address, or

(d) in the case of an officer or employee ofa PRSA provider, whether authorised 30to receive the notice, direction orother document concerned or not, bysending it to him by post in a prepaidletter to the address of the principaloffice of that PRSA provider. 35

(3) Where a notice, direction or other docu-ment under this Part or regulations madethereunder is to be served on or given to a personwho is the owner or occupier of land and thename of the person cannot be ascertained by 40reasonable inquiry, it may be addressed to theperson by using the words the owner or, as thecase may require, the occupier.

(4) For the purposes of subsection (2), a com-pany within the meaning of the Companies Acts, 451963 to 2001, shall be deemed to be ordinarilyresident at its registered office, and every otherbody corporate and every unincorporated bodyshall be deemed to be ordinarily resident at itsprincipal office or place of business. 50

(5) References in this Part (other than insection 112(1), in so far as it relates to the fur-nishing of the information concerned under para-graph (a) thereof, and section 114(4)) to the pro-vision of information by a PRSA provider to a5contributor or a person referred to in section111(1) (a ‘prospective contributor’) shall, unlessthe context otherwise requires, be construed asincluding references to the provision of the infor-mation by the PRSA provider to the contributor10or prospective contributor—

(a) by means of any electronic method,

(b) by means of telephone, or

(c) by any other means provided for in thePRSA contract concerned or as may15otherwise be agreed between the pro-vider and the contributor or prospec-tive contributor,

but the use of any of those means for that pur-pose shall not relieve the provider of the obli-20gation to ensure that the contributor orprospective contributor receives the information.

Application 92.—(1) A person who wishes to produce,required for

market or sell a PRSA product shall make anapproval of PRSAproduct. application to the Board and the Revenue Com-25

missioners for the grant, under section 94, ofapproval by the Board and the Revenue Com-missioners of the product.

(2) The approval of a PRSA product undersection 94 shall not constitute a warranty as to30the solvency of the person who will produce theproduct and neither the Board nor the RevenueCommissioners shall—

(a) be liable in respect of any losses incurredthrough the insolvency or default of a35person who produces a product thathas been so approved, or

(b) have any duty to any contributor regard-ing the investment performance of aPRSA product.40

Procedures for the 93.—The procedures to be followed in respectgranting of approval

of the granting of approval of PRSA productsof PRSA products.under section 94 shall be determined by theBoard.

Grant of approval45 94.—(1) An application for approval of aof a PRSA product

PRSA product under this section shall—and code ofconduct.

(a) be made in writing and signed by twodirectors of the applicant and be in

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such form and contain such particu-lars as the Board and the RevenueCommissioners may from time to timedetermine, and

(b) be accompanied by a certificate provided 5by a PRSA actuary and two directorsof the applicant stating that it is theopinion of the actuary and thosedirectors that the product complieswith the requirements of this Part and 10any regulations made under section103(2).

(2) A product shall not be approved under thissection by the Board unless the applicant satisfiesthe Board— 15

(a) that the product complies with therequirements of this Part and anyregulations made under section103(2),

(b) that, as regards the producing, marketing 20or selling by the applicant of the prod-uct, the applicant—

(i) has adequate levels of expertise tocarry on those activities,

(ii) will establish and follow proper 25procedures so as to enable theBoard to be supplied with allinformation necessary for theperformance by the Board of itssupervisory functions in relation 30to those activities and to enablemembers of the public to be sup-plied with any information whichthe Board may specify, and

(iii) has organised the structure of its 35business, in so far as the carryingon of those activities is con-cerned, in a manner that willfacilitate the Board in performingits supervisory functions in 40relation to those activities, and

(c) in case the applicant is an undertakingreferred to in paragraph (b) of thedefinition of ‘‘PRSA provider’’ insection 91(1), the activities referred to 45in paragraph (b)(i) will be carried onsolely for the purpose of the effectingand carrying out by it of life assurancepolicies.

(3) A product shall not be approved under this 50section by the Revenue Commissioners unless—

(a) the Board has notified them that it hasapproved the product under subsec-tion (2), and

(b) in accordance with the provisions ofChapter 2A (inserted by section 4 of5this Act) of Part 30 of the Taxes Con-solidation Act, 1997, they approve theproduct for the purposes of thissubsection.

(4) If an application for approval under this10section relates to two or more products, theBoard and the Revenue Commissioners mayapprove or refuse to approve one or more of theproducts as they consider appropriate.

(5) The Board shall prepare, and amend from15time to time as it considers appropriate, a code ofconduct with respect to the producing, marketingand selling by PRSA providers of PRSA productsand may attach to any approval granted by it andthe Revenue Commissioners under this section20(whether at the time of the grant of approval orany time thereafter) a condition requiring the rel-evant PRSA provider to comply, in respect of theproduct, with the code.

(6) In preparing a code under subsection (5),25the Board shall have regard to—

(a) the need to provide for the protection ofPRSA contributors, and

(b) the need to provide for effective super-vision of the producing, marketing30and selling of PRSA products.

Misleading 95.—Any person who, in purported compliancestatements.

with section 94(1), makes a statement knowing itto be false or misleading in a material particularshall be guilty of an offence.35

Application 96.—(1) An applicant shall comply with therequirements.

following provisions—

(a) the applicant shall, unless it has satisfiedthe Board that it intends to provideand is capable of providing such a ser-40vice itself, enter into a contractualarrangement with one or more invest-ment managers to provide an invest-ment service in respect of its PRSAproduct or products in accordance45with this Part in the event that thoseproducts are approved by the Board,

(b) the applicant shall enter into a contrac-tual arrangement with an auditor toprovide services for the purposes of50

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section 118 in respect of the appli-cant’s PRSA products in the eventthat those PRSA products areapproved by the Board,

(c) the applicant shall, unless it has satisfied 5the Board that it intends to provideand is capable of providing such ser-vices itself, enter into a contractualarrangement with one or more admin-istrators to provide administration 10services in respect of its PRSA prod-uct or products in accordance withthis Part in the event that those prod-ucts are approved by the Board,

(d) unless the applicant employs a PRSA 15actuary under a contract of service,the applicant shall enter into a con-tractual arrangement with a PRSAactuary to provide services in respectof the applicant’s PRSA product or 20products and its business in accord-ance with this Part in the event thatthose products are approved by theBoard,

(e) subject to subsection (2) and unless it has 25satisfied the Board that it intends toprovide and is capable of providingsuch services itself, the applicant shallenter into a custodian contract withone or more than one custodian to 30hold moneys paid by or on behalf ofPRSA contributors in accordancewith this Part under PRSA contractsand the PRSA assets relating to thosePRSA contracts in the event that the 35applicant’s PRSA products areapproved by the Board,

(f) the applicant shall, at the time of appli-cation, pay to the Board such fee asmay be prescribed. 40

(2) If the PRSA provider is an undertakingreferred to in paragraph (b) of the definition of‘PRSA provider’ in section 91(1) (and, accord-ingly, its activities as such a provider are confinedto activities for the purposes of the effecting and 45carrying out by it of life assurance policies)—

(a) paragraphs (b) and (e) of section 96(1)shall not apply to it, and

(b) the definition of ‘contribution’ in section91(1) and subsections (3), (4) and (5) 50of section 121 shall, in relation to it,apply as if the references in thatdefinition and those subsections to‘the relevant custodian account of aPRSA provider’, were references to ‘a 55PRSA provider’.

(3) If a PRSA provider, having satisfied theBoard, in accordance with paragraph (e) of sub-section (1), that it intends to do so and is capableof doing so, provides itself the services referredto in that paragraph, then section 98(1) shall not5apply to moneys held in the custodian accountmaintained by that provider.

(4) All information concerning the structure ofany PRSA and description of any PRSA productwhich an applicant intends to market and sell as10the Board may require shall be submitted to theBoard at the time of application for approval ofthe PRSA product.

(5) The Board may at any time prior to thegrant or refusal of approval of a PRSA product15request the applicant to furnish further infor-mation to it in relation to the application.

(6) An applicant shall be informed by theBoard whether or not approval of the PRSAproduct concerned has been granted by it—20

(a) within 3 months after the receipt of theapplication, or

(b) where further information in relation tothe application has been sought by theBoard under subsection (5), within 325months after the receipt by the Boardof the further information.

(7) (a) Where the Board refuses an applicationfor approval under section 94 the appli-cant may appeal to the Court in a sum-30mary manner against that refusal.

(b) The sole ground upon which such anappeal may be taken is that the Board,did not, in a material respect, complywith the requirements of this Part or35regulations in dealing with the saidapplication.

(c) On the hearing of such an appeal, theCourt—

(i) if it is satisfied that the said40requirements have been com-plied with, shall confirm thedecision of the Board, and

(ii) if it is satisfied that the saidrequirements have not been com-45plied with in any materialrespect, shall set aside thedecision of the Board and remitthe matter to the Board who shallthereupon reconsider the matter50and make a decision in accord-ance with those requirements.

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Suspension and 97.—(1) The Board, after, where appropriate,withdrawal of

consultation with the Revenue Commissioners,approval of a PRSAproduct. may at any time suspend or withdraw the

approval under section 94 of a PRSA product ifthe Board is satisfied that the relevant PRSA 5provider—

(a) has expressly requested the withdrawalof the approval;

(b) has ceased to carry on the business ofPRSA provider for more than 6 10months;

(c) no longer complies with the require-ments of this Part or regulationsthereunder for the granting of anapproval under section 94 in respect 15of products produced by it;

(d) has failed, to a serious extent, to complywith its obligations under this Part orregulations thereunder; or

(e) if, since the grant of the approval, the cir- 20cumstances relevant to the grant havechanged and are such that, if an appli-cation for the approval of the PRSAproduct were made in the changedcircumstances, it would be refused by 25either the Board or the RevenueCommissioners or, if in the light ofinformation available to the Board atthat time, the Board, on any othergrounds of a substantial nature, con- 30siders it appropriate to suspend orwithdraw the approval.

(2) Whenever the Board suspends or with-draws approval of a PRSA product under subsec-tion (1) (other than in pursuance of a request by 35the relevant PRSA provider to do so) it shallnotify the relevant PRSA provider in writing thatit has suspended or withdrawn the approval.

(3) The Board may, if it is satisfied that thegrounds referred to in paragraph (c) or (d) of 40subsection (1) exist, require the relevant PRSAprovider not to accept new contributors orfurther contributions in respect of the PRSAproduct or products concerned during such per-iod as the Board may determine and the PRSA 45provider shall comply with that requirement.

(4) Whenever approval is suspended or with-drawn by virtue of subsection (1) the relevantPRSA provider shall immediately inform in writ-ing any contributor who may be affected by such 50suspension or withdrawal of that suspension orwithdrawal.

(5) On a PRSA provider being notified undersubsection (2) that approval of the PRSA productor products concerned has been withdrawn, it 55

shall immediately transfer or make arrangementswithout undue delay for the transfer of the PRSAassets, the subject of each such product, to suchother PRSA provider or providers as may benominated by the contributors concerned. In the5event of a contributor not making such a nomi-nation within a reasonable period of time, thensuch transfer shall be made to such PRSA pro-vider or providers as shall be approved by theBoard.10

(6) Subject to subsections (5) and (8), when-ever approval has been withdrawn by virtue ofsubsection (1), all PRSA contracts to which therelevant PRSA provider at the time of such with-drawal is a party may be terminated by it but15without any imposition of a penalty on the rel-evant PRSA contributors.

(7) The Minister may by regulations enablethe Board to suspend or withdraw an approval incircumstances specified in the regulations, being20circumstances additional to those specified insubsection (1), and may specify in these regu-lations terms, conditions and restrictions uponand subject to which the power so conferred onthe Board may be exercised.25

(8) The Minister may by regulations require aPRSA provider to notify the Board, as soon asmay be after the event’s occurrence, of the factthat an event specified in the regulations hasoccurred.30

(9) Where approval of a PRSA product iswithdrawn, the relevant PRSA provider shallcontinue to be subject to the duties and obli-gations imposed by this Act and regulationsthereunder and any other conditions or require-35ments imposed by the Board pursuant to this Actor such regulations until all the liabilities, dutiesand obligations of the said PRSA provider assuch a provider have been discharged to the satis-faction of the Board.40

(10) The Board shall publish notice of with-drawal of approval of a PRSA product in IrisOifigiuil and in one or more newspapers circulat-ing in the State within 28 days of such withdrawal.

(11) Where the Board gives a direction or45makes a requirement of a PRSA provider pursu-ant to this Act or regulations thereunder, theBoard may, if it is satisfied that the direction orrequirement has not been complied with, applyto the Court and the Court may confirm, vary or50set aside the direction or requirement on suchterms and for such period as the Court thinks fit.

(12) (a) Where the Board suspends or with-draws an approval, the relevant PRSAprovider may appeal to the Court in a55

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summary manner against that suspen-sion or withdrawal.

(b) The sole ground upon which such anappeal may be taken is that the Board,did not, in a material respect, comply 5with the requirements of this Part orregulations thereunder in exercisingthe powers concerned.

(c) On the hearing of such an appeal, theCourt— 10

(i) if it is satisfied that the saidrequirements have been compliedwith, shall confirm the decision ofthe Board, and

(ii) if it is satisfied that the said 15requirements have not been com-plied with in any material respect,shall set aside the decision of theBoard and remit the matter to theBoard who shall thereupon 20reconsider the matter and make adecision in accordance with thoserequirements.

Ownership of 98.—(1) A contributor to a PRSA shall be theassets.

beneficial owner of the PRSA assets of that 25PRSA.

(2) No legal or equitable charge may subsistover the PRSA assets of a PRSA for so long asa contributor is, by virtue of subsection (1), thebeneficial owner of them. 30

Reporting 99.—(1) A PRSA provider shall prepare andobligations of

deliver to the Board in respect of each period ofPRSA providers.3 months—

(a) a report in relation to the PRSA businessof the provider, and 35

(b) a return relating to the contributors toits PRSA products which shall includesuch personal information in relationto each such contributor as the Boardmay require for the purpose of meet- 40ing its obligations under section117(1) relating to recording and main-taining statistics of contributors.

(2) Each return and report referred to in sub-section (1) shall be signed by 2 directors of the 45PRSA provider and be in such form and containsuch particulars and be delivered to the Boardwithin such period as may be prescribed.

(3) A PRSA provider shall, within such periodafter the year concerned as may be prescribed, 50deliver to the Board, in respect of each financial

year of the provider, its audited accounts.

(4) A contributor shall, if requested by thePRSA provider to do so, inform the PRSA pro-vider of his personal public service number forthe purpose of enabling the provider to comply5with subsection (1)(b).

(5) A PRSA provider shall promptly notify theBoard of any material fact or circumstance whichrelates to that PRSA provider or the conduct ofits activities as such a provider which might10reasonably influence the Board in determiningwhether or not to exercise the powers undersection 97.

Unapproved PRSA 100.—A person shall not produce, market orproducts.

sell a PRSA product which is not for the time15being approved by the Board and the RevenueCommissioners under section 94.

PRSA products: 101.—(1) A product which does not complysupplemental

with the requirements of this Part or regulationsprovisions.thereunder may not be marketed or sold as a20PRSA product and the term ‘Personal Retire-ment Savings Account’ or ‘PRSA’ may not beapplied to describe such product.

(2) None of the following terms, namely—

(a) ‘Personal Retirement Savings Account’25or ‘PRSA’,

(b) ‘Standard Personal Retirement SavingsAccount’ or ‘Standard PRSA’,

may be registered as a trademark.

(3) A PRSA contract shall include a provision30that either party to the contract may refer anydispute arising from the PRSA contract to thePensions Ombudsman.

(4) A PRSA contract shall provide for the pay-ment of the PRSA assets to the contributor as35they become due, whether in the State or in anyother Member State, net of any taxes and trans-action charges which may be applicable.

(5) The Investment Intermediaries Act, 1995,is amended—40

(a) in section 2(1), by the insertion in thedefinition of ‘investment instruments’,after paragraph (m), of the following:

‘(n) Personal Retirement SavingsAccounts within the meaning of45Part X of the Pensions Act,1990,’,

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(b) in section 25(b)—

(i) by the deletion in subparagraph(vi) of ‘or’,

(ii) by the substitution in subpara-graph (vii) of ‘policies, or’ for 5‘policies.’, and

(iii) by the insertion after subpara-graph (vii) of the following:

‘(viii) Personal Retirement Sav-ings Accounts within the 10meaning of Part X of thePensions Act, 1990.’,

and

(c) in section 26(1)(a) by the substitution of‘tracker bonds, insurance policies or 15Personal Retirement SavingsAccounts within the meaning of PartX of the Pensions Act, 1990’ for‘tracker bonds or insurance policies’.

(6) Section 3(1) of the Stock Exchange Act, 201995, is amended, in the definition of ‘investmentinstruments’—

(a) by the deletion in paragraph (d) of ‘and’,and

(b) by the insertion after paragraph (d) of 25the following:

‘(dd) Personal Retirement SavingsAccounts within the meaning ofPart X of the Pensions Act, 1990,and’. 30

Personal 102.—In this Part ‘Personal Retirement Sav-Retirement Savings

ings Account product’ or ‘PRSA product’ meansAccount product.an arrangement to which a PRSA provider is aparty and under which it agrees, in considerationof payments to it, in the form of charges, to 35receive moneys from or on behalf of a contributorand invest those moneys in a manner nominatedby the contributor or the PRSA provider.

Investment. 103.—(1) (a) A PRSA provider shall prepare adefault investment strategy for 40each PRSA product which itoperates.

(b) The PRSA provider shallimplement the default invest-ment strategy in respect of each 45PRSA contract except where acontributor elects in writing notto have the strategy applied tothe PRSA contract to which hecontributes, in which case the 50

strategy shall not apply to thatcontract accordingly.

(2) The Minister may by regulations specifyrequirements to be complied with in relation tothe investment of PRSA assets and such regu-5lations shall, in relation to the default investmentstrategy referred to in subsection (1), provide forat least the following:

(a) subject to the provision referred to inparagraph (b), a requirement that10such a strategy adopt an investmentprofile consistent with fulfilling thereasonable expectations of a typicalcontributor with respect to the saidPRSA product for the purposes of15making savings for retirement;

(b) notwithstanding such a requirement, aprovision specifying that the elementsof such a strategy may vary betweenindividual contributors to PRSA20products falling within the same classaccording to any known character-istics of those individual contributorsand that contributors shall not berequired to make decisions as to the25choice of specific investments madeby the PRSA provider or its invest-ment managers.

(3) Subject to provision being made for tem-porary holdings in cash for liquidity purposes, a30default investment strategy may only provide forinvestment in one or more pooled funds. Anysuch pooled fund shall have—

(a) appropriate diversification of invest-ments, including appropriate diversifi-35cation of credit and counterpartyrisks,

(b) appropriate liquidity of investments,

(c) charges that are readily identifiable,

(d) unit or share prices that are determined40on most working days,

(e) unit or share prices that are widely pub-lished not less frequently than weekly,and

(f) unit or share prices that are determined45with regard for equity between differ-ent generations of unitholders orshareholders.

(4) Subject to provision being made for tem-porary holdings in cash for liquidity purposes, a50Standard PRSA may only have PRSA assets thatcomprise investments in one or more pooled

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funds. Any such pooled fund shall comply witheach of the conditions specified in paragraphs (a)to (f) of subsection (3).

Charges. 104.—(1) The charges to be made under aPRSA contract shall neither— 5

(a) in the contract, nor

(b) in any promotional or other materialrelating to such a contract,

be expressed in cash terms.

(2) The charges made under a PRSA contract 10shall be calculated on one of the followingbases:

(a) as a percentage of each contribution; or

(b) as a percentage of the value of the PRSAassets; or 15

(c) as a percentage of each contribution anda percentage of the value of thePRSA assets.

(3) The charges expressed as a percentage ofeach contribution may only vary between PRSA 20contracts offered by the same PRSA provideraccording to—

(a) the particular PRSA product,

(b) the method of distribution,

(c) the procedure for the payment of contri- 25butions, whether by cheque, payrolldeduction, direct debit or otherprocedures,

(d) the investments held,

(e) the time that has elapsed since the con- 30tributor entered into the PRSAcontract,

(f) the amount of the contribution.

(4) The charges expressed as a percentage ofthe value of PRSA assets may only vary between 35PRSA contracts offered by the same PRSA pro-vider according to—

(a) the particular PRSA product,

(b) the method of distribution,

(c) the procedure for the payment of contri- 40butions, whether by cheque, payrolldeduction, direct debit or otherprocedures,

(d) the investments held,

(e) the time that has elapsed since the con-tributor entered into the PRSAcontract,

(f) the amount of PRSA assets to which the5particular PRSA contract relates.

(5) The amount of any particular charge madeunder a Standard PRSA contract, being a chargemade on the basis referred to in—

(a) paragraph (a) of subsection (2), or10

(b) paragraph (c) of that subsection in so faras it relates to contributions,

shall not exceed 5 per cent of the amount of thecontribution in respect of which it is made.

(6) The total amount of all charges made to the15PRSA assets of a Standard PRSA, being chargesmade on the basis referred to in—

(a) paragraph (b) of subsection (2), or

(b) paragraph (c) of that subsection in so faras it relates to the value of those20assets,

shall not exceed a rate of 1 per cent per annumof those assets.

(7) No initial charges, whether expressed as apercentage of contribution or otherwise, shall be25made on transfers received from other pensionarrangements entered into by a contributor.

(8) No charges shall be made under a PRSAcontract in respect of a termination by a contribu-tor of a PRSA contract to which he is party or in30respect of a transfer of funds effected from sucha contract.

(9) The Minister may by regulations require aPRSA provider to give notice (the period ofwhich shall not be less than a period specified in35the regulations) to a contributor or a prospectivecontributor of charges proposed to be made by itunder a PRSA contract.

(10) The Minister may by regulations requirethat the amounts of charges made under a PRSA40contract shall not be greater than such amountsas are specified in the regulations.

(11) A PRSA provider shall give timelyadvance notification to a contributor of anychanges to charges proposed to be made under a45PRSA contract.

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Suspension or 105.—Any provision of a PRSA contract whichvariation of

purports to provide for the imposition of a pen-contributions.alty or charge on a contributor if he—

(a) suspends payment of a contribution orrecommences the payment of a contri- 5bution the payment of which he hassuspended, or

(b) varies the amount of his contributions,

shall be void.

Contributions. 106.—(1) A contributor who is in receipt of 10benefits under a PRSA may pay contributionsinto the PRSA.

(2) For the avoidance of doubt, contributionsto a PRSA may be made by a person who hasentered into a PRSA contract, notwithstanding 15that at the time of the making of the contri-butions, he is not employed or self-employed.

(3) An employer may pay, at his own expense,contributions into the employee’s PRSA.

(4) Subject to subsection (5), a PRSA contract 20may specify that the amount of a contributionshall not be less than an amount specified in thecontract.

(5) (a) The Minister may by regulations pro-vide that the amount of a contribution 25shall not be less than an amount speci-fied in the regulations (‘the minimumamount’) and shall not be greaterthan an amount specified in the regu-lations; any provision of a PRSA con- 30tract purporting to specify that theamount of a contribution shall not beless than an amount specified in thecontract, being an amount which isgreater than the minimum amount, 35shall be void.

(b) Unless otherwise permitted by regu-lations made under paragraph (a)—

(i) a PRSA contract shall not specifyas the minimum amount of a con- 40tribution an amount exceeding\300 per annum,

(ii) without prejudice to subparagraph(i), a PRSA contract shall notspecify as the minimum amount 45of a contribution an amountexceeding \10 in respect of eachtransaction carried out by elec-tronic funds transfer (includingdirect debits) or exceeding \50 in 50respect of each transaction car-ried out by other methods ofpayment.

Security of 107.—(1) Prior to the investment of any pay-contributions.

ments made under a PRSA contract, a PRSAprovider, not being a PRSA provider referred toin section 96(3), shall ensure such payments areheld in a custodian account through a custodian5with whom it has entered into a custodian con-tract in accordance with subsection (1)(e) ofsection 96 in such a manner that they are clearlyidentifiable and legally separate from the assetsof the PRSA provider.10

(2) Subject to section 121(3), every contri-bution to a PRSA contract shall be paid to thecustodian account of the relevant PRSA provider.

(3) The use by a custodian of the services ofother financial institutions, sub-custodians or15nominees in order to provide for the safekeepingin a custodian account of the payments referredto in subsection (1) shall not relieve the custodianof any of its obligations, duties or liabilities undera custodian contract.20

(4) Where a contribution is paid to an inter-mediary, including an investment business firmauthorised under the Investment IntermediariesAct, 1995, or a member firm authorised under theStock Exchange Act, 1995, in respect of a PRSA25contract entered into by a PRSA provider, thecontribution shall be treated as having been paidto the PRSA provider when it is paid to the inter-mediary. Nothing in this subsection shall rendera PRSA provider liable for a contribution paid to30an intermediary in respect of a PRSA contractentered into by a PRSA provider, where thePRSA provider has given reasonable notice inwriting to the PRSA contributor, that the inter-mediary has no authority to collect such contri-35butions on behalf of the PRSA provider.

Transfers between 108.—(1) Any provision of a PRSA contractPRSA providers.

purporting to prohibit a contributor fromentering into another PRSA contract and trans-ferring his PRSA assets to the PRSA provider40with whom he has entered into the other suchcontract shall be void.

(2) Any provision of a PRSA contract pur-porting to require a payment by a contributor inrespect of a transfer of the kind referred to in45subsection (1) shall be void.

(3) A provider of a Standard PRSA which isnominated by an employer and which facilitatesaccess by the employees of the employer bymeans of payroll deductions shall accept transfers50of any PRSA assets that may be held by thoseemployees.

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Payment of PRSA 109.—(1) Save in accordance with Chapter 2Aassets to

of Part 30 of the Taxes Consolidation Act, 1997,contributor.a PRSA provider shall not pay the PRSA assetsto a contributor, except where—

(a) the amount of the contributor’s PRSA 5assets with that PRSA provider, at thetime of a request by the contributorfor or offer by the provider, does notexceed \650 or such other amount asthe Minister may, by regulations, 10specify, and

(b) no contributions have been receivedfrom the contributor for a period of atleast 2 years prior to the said requestor offer, 15

in which case, if the PRSA provider complieswith the condition referred to in subsection (2),he may refund the contributor’s PRSA assets tohim and, in the case of an offer by the PRSAprovider of a payment, without the contributor’s 20consent.

(2) The condition mentioned in subsection (1)is that a period of 3 months or more has expiredfrom the service of a written statement by thePRSA provider on the contributor advising the 25contributor to transfer his PRSA assets toanother PRSA or pension arrangement or tomake further contributions.

Marketing and sale 110.—(1) A Standard PRSA shall not be mar-of PRSAs.

keted or sold in such a manner as makes the 30entering into of a contract in respect of it depen-dent on any other product being purchased.

(2) No document relating to the marketing orsale of a Standard PRSA may solicit the purchaseof, or otherwise advertise any other product. 35

(3) The Minister may by regulations enable theBoard to impose such conditions or requirementson a PRSA provider in respect of advertising bythe provider of its activities as such a provideras the Board considers necessary in the interests 40of—

(a) the orderly and proper regulation andsupervision of PRSA providers, or

(b) the protection of contributors.

Preliminary 111.—(1) Before offering to enter into a PRSA 45disclosure

contract with a person, a PRSA provider shallcertificate.furnish to that person a certificate (which shall beknown and is in this Act referred to as a ‘prelimi-nary disclosure certificate’).

(2) A preliminary disclosure certificate shall 50specify the benefits and the level of them which

the person referred to in subsection (1) couldreasonably expect to receive from the PRSA con-cerned on the expiration of a period specified inthe regulations made by the Minister for the pur-poses of this section and calculated in accordance5with those regulations on the basis of projectedcontributions to be made during the said periodand otherwise on the basis of assumptions speci-fied in the regulations.

(3) A PRSA contract shall not be binding on a10person until a period of 15 days has elapsed fromthe date on which the PRSA provider has givento that person a Statement of Reasonable Projec-tion in accordance with section 112(1)(c).

(4) The Minister may make regulations requir-15ing a PRSA provider to make, in accordance withthe regulations, full disclosure to the personreferred to in subsection (1) and contributors ofall potential and actual commissions payable andother charges payable by contributors in respect20of a PRSA product, other than a Standard PRSA,provided by the PRSA provider.

(5) Each person who provides a service to aPRSA provider with respect to its business ofproviding PRSA products (including each person25referred to in section 96(1)) shall furnish to thePRSA provider such information in relation tocommissions and expenses charged by him inrelation to the provision of that service as isnecessary to enable the PRSA provider to comply30with its obligations under subsection (4).

Obligation to 112.—(1) A PRSA provider shall furnish to thefurnish

contributor to a PRSA operated by it a StatementStatements ofReasonable of Reasonable Projection—Projection.

(a) annually (and a statement under this35paragraph shall be in printed and noother form),

(b) subject to subsection (3), at any time onbeing requested by the contributor todo so, and40

(c) on the happening of any of the eventsreferred to in subsection (2).

(2) The events referred to in subsection (1)(c)are—

(a) the entry by the person referred to in45section 111(1) into a PRSA contractwith the provider, and

(b) an increase in the number or amounts ofcharges that may be made under thePRSA contract concerned.50

(3) A PRSA provider shall not be obliged tocomply with a request under subsection (1)(b)

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unless the contributor concerned gives reasonablenotice to him of the request but the provider maynot require more than 7 days’ notice for thispurpose.

(4) Where a Statement of Reasonable Projec- 5tion falls to be furnished by virtue of subsection(1)(c), it shall be furnished to the contributor con-cerned within 7 days from the happening of theevent concerned referred to in subsection (2).

(5) The Minister may by regulations require a 10PRSA provider to provide a Statement ofReasonable Projection to a contributor on thehappening of a specified event (not being anevent referred to in subsection (2)).

Disclosure before 113.—(1) Subject to subsection (3), a PRSA 15transfer from a

provider shall not accept the transfer of fundsscheme to a PRSA.from a scheme to the PRSA which that PRSAprovider operates unless it has previously ensuredthat there has been furnished by it, or an inter-mediary on its behalf, to the person wishing to 20make such a transfer—

(a) a certificate setting out a comparison ofthe benefits which may accrue fromthe scheme and which may accruefrom the PRSA, and 25

(b) a written statement of the reasons whysuch a transfer is or is not in theinterest of the person wishing to makesuch a transfer.

(2) The trustees of the scheme referred to in 30subsection (1)(a) shall, at the request of the per-son referred to in that subsection, furnish to thatperson or the PRSA provider referred to in thatsubsection a statement of the benefits which mayaccrue from the scheme in respect of that person. 35

(3) Except in the case of a person who is, forthe time being, a member of a scheme accruingbenefit under that scheme, subsection (1) shallnot apply to a transfer—

(a) of a sum less than \4,000, or 40

(b) which represents a return of contri-butions, or the value of accrued bene-fits, to a member who has less thantwo years’ service in the employmentin respect of which the scheme was 45operative and has no preservedbenefit.

(4) The Minister may by regulations prescribethe form of the certificate referred to in subsec-tion (1)(a) and the statement referred to in sub- 50section (1)(b) and the requirements to be satis-fied before such a certificate or statement may be

furnished under that subsection which shallinclude a requirement that the person preparingsuch certificate or statement has such pro-fessional indemnity insurance as shall be specifiedin the regulations.5

General disclosure 114.—(1) A PRSA provider shall give to theobligations.

contributor to a PRSA operated by it, at intervalsof not greater than 6 months’ duration, a state-ment of account in printed and no other formspecifying, as at the date of preparation of the10statement—

(a) the total contributions credited to thecontributor by the PRSA providersince the PRSA contract was enteredinto by him, and15

(b) where a previous statement of accountunder this subsection has been givento the contributor, the total contri-butions credited to the contributor bythe PRSA provider during the period20between the date of preparation ofthe last previous such statement andthe date of preparation of the currentstatement.

(2) A statement of account given in accord-25ance 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 tosubsection (1) shall state the value of the PRSA30on the date of preparation of the statement.

(4) A PRSA provider shall furnish a reportannually to the contributors on the performanceof all investment funds in which the moneys ofthe said contributors’ contributions are invested.35

(5) In subsection (3) ‘value of the PRSA’means the amount of money that would be avail-able to the contributor concerned for transfer outof the PRSA on the date of preparation of thestatement concerned.40

Power of Minister 115.—The Minister may by regulations—to prescribeinformation to bedisclosed. (a) prescribe the form and contents of a

Statement of Reasonable Projection,

(b) as respects any obligation imposed by orunder this Part to disclose information45(other than in the form of such astatement), where not otherwisespecified therein, prescribe—

(i) the type of information which

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must be disclosed to a con-tributor,

(ii) the format in which informationmust be disclosed,

(iii) the manner of its disclosure, 5

(iv) the periods within which such dis-closure must be made,

(v) the persons to whom such disclos-ure must be made, and

(vi) the persons who may be obliged to 10make such disclosure,

(c) provide that the requirements of thisPart in relation to the disclosure ofinformation shall not apply, or shallonly apply to a specified extent, in 15respect of a Standard PRSA.

Statement of 116.—(1) In this Part ‘Statement of Reason-Reasonable

able Projection’ means a statement prepared byProjection.a PRSA provider for a PRSA contributor whichspecifies the level of benefit which could reason- 20ably be expected at a specified date or dates to bepayable under the contributor’s PRSA contractbased on the value of the PRSA at the date ofthe statement and using such assumptions as tofuture contributions and investment returns as 25may be specified in regulations.

(2) A Statement of Reasonable Projectionshall contain such warnings as are prescribed forthe benefit of a potential or actual contributor toa PRSA. 30

(3) A Statement of Reasonable Projectionshall advise a potential or actual contributor toa PRSA of the importance of making adequatefinancial provision for retirement and ofobtaining appropriate financial advice in that 35regard.

Functions of Board 117.—(1) The Board shall—in relation toPRSAs.

(a) keep a register in which there shall beentered such particulars as may be pre-scribed in relation to PRSA providers 40and PRSA products and such registershall be open for inspection by anymember of the public at all reasonabletimes on payment of such fee as theBoard may determine, and 45

(b) maintain, in accordance with regu-lations, an up to date database ofstatistics related to the PRSA assets of,and contributions and contributors to,Personal Retirement Savings Accounts 50

provided by each PRSA provider, theactivities of each PRSA provider inrespect of its business as such a pro-vider and the extent to which each par-ticular default investment strategy5applies in relation to a contributor toeach PRSA.

(2) (a) Sections 87 to 89 shall apply to aPRSA.

(b) For the purposes of such application,10the following expressions used insections 87 to 89 shall, in thosesections, have the meanings assignedto them by this paragraph—

(i) ‘employer’ means an employer15whose employees are contribu-tors to a PRSA,

(ii) ‘trustee’ means, as the contextrequires, a custodian or an invest-ment manager,20

(iii) ‘scheme’ means a PRSA,

(iv) ‘member’ means a contributor toa PRSA,

(v) ‘resources’ means the assets of aPRSA.25

(3) The Board shall, from time to time, con-duct reviews of actual charges purported to bemade under PRSA contracts and shall, in accord-ance with regulations, monitor PRSA providers’promotional and other material to determine30whether all charges and other matters requiredby regulations under this Part to be expressed insuch material are expressed clearly therein.

(4) A failure by a PRSA provider to expressclearly in its promotional material or any other35of its material prescribed for the purposes of thissection any charge or other matter as aforesaidshall constitute, for the purpose of section97(1)(d), a serious failure by it to comply with itsobligations under this Part.40

(5) Each PRSA provider shall pay in each yearto the Board a fee of such amount as may be pre-scribed by the Minister with the consent of theMinister for Finance.

(6) Regulations may be made by the Minister45requiring each PRSA provider to furnish suchinformation and reports as are specified in theregulations to the Board for the purpose ofenabling the Board to perform its functions underthis section.50

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(7) Notwithstanding anything in this Part, theBoard may, with the consent of the person con-cerned, delegate to such person as is, in theopinion of the Minister, suitable for the purposeand stands prescribed for the purposes of this 5subsection, the performance of one or more ofits functions under this Part in relation to PRSAproviders and applications for approval of PRSAproducts.

Functions of the 118.—The auditor, appointed by the PRSA 10auditor.

provider under section 96(1)(b), shall, in accord-ance with such regulations as may be made bythe Minister, prepare, and furnish to the Board,a report in relation to the PRSA provider’s cus-todian account and the operation thereof. 15

Functions of the 119.—(1) The PRSA actuary with whom aPRSA actuary.

PRSA provider has entered into the contractualarrangement mentioned in section 96(1)(d) orwho is employed by it shall determine, at suchintervals and within such periods and with respect 20to such matters as are specified in regulations, theextent to which the said provider has compliedwith this Part and regulations made thereunder.

(2) Such an actuary shall, as a result of thatdetermination, certify, if in his opinion such be 25the case and within the period and in the formspecified in regulations, that the deduction of anyamount from a PRSA product by way of acharge—

(a) is consistent with the amounts indicated 30by the PRSA provider concerned indocumentation made available tomembers of the public as being theamounts that would be deducted fromthe product by way of charges, and 35

(b) complies with this Part and regulationsmade thereunder.

(3) In—

(a) preparing a certificate under this section,or 40

(b) signing a certificate required undersection 94(1)(b),

a PRSA actuary shall comply with any guide-lines issued by the Society of Actuaries inIreland for this purpose and with any regu- 45lations made for the purposes of this section.

Functions of the 120.—Any contractual arrangement enteredadministrator.

into in accordance with section 96(1)(c) shallinclude a provision requiring the administrator

concerned to make provision in relation to suchmatters as may be prescribed.

Obligation of 121.—(1) An employer who is not operating aemployer to provide

scheme or who is operating a scheme which limitsaccess and to remitcontributions. eligibility for membership of it or imposes a wait-5

ing period for membership of it which is greaterthan 6 months from the date of commencementof employment shall, in respect of at least onetype of Standard PRSA—

(a) enter for the benefit of his excluded10employees into a contractual arrange-ment with one or more PRSA pro-viders to enable those employees toparticipate in such a PRSA,

(b) deduct, at the request of any excluded15employee and on receipt of the appro-priate information from theemployee, such sums of money as aredetermined by the employee and theemployer from the wage or salary of20the employee, and

(c) subject to subsections (2) and (3), remitthe said sums to the Standard PRSAthe subject of the contractual arrange-ment referred to in paragraph (a) or,25if there is more than one such Stan-dard PRSA, to the Standard PRSAchosen by the excluded employee.

(2) An employer referred to in subsection (1)shall—30

(a) notify excluded employees of their rightto contribute to a Standard PRSA bythe means referred to in paragraph(b) of that subsection,

(b) allow PRSA providers or intermediaries35reasonable access to excludedemployees at their workplace for thepurpose of concluding StandardPRSA contracts, and

(c) subject to work requirements, allow40excluded employees reasonable paidleave of absence to enable them tomake arrangements for the establish-ment of a Standard PRSA.

(3) An employer who deducts any sum from45the wages or salary of an employee in respect ofa PRSA contract entered into by that employeeshall remit every such sum to the relevant custod-ian account of the PRSA provider within 21 daysfollowing the end of the month in which the50deduction was made. An employer shall notmake any deductions from the sum required tobe remitted by him under this subsection.

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(4) Where an employer is obliged (whetherunder a contract of employment or otherwise) topay any sum expressed as a cash amount orexpressed as a percentage or proportion of anemployee’s wages or salary (other than a sum 5deducted from the employee’s wages or salary) tothe relevant custodian account of a PRSA pro-vider on behalf of or in respect of that employee,he shall, within 21 days following the end of everymonth, pay to the relevant custodian account of 10the PRSA provider, a sum equal to the appropri-ate cash amount or percentage or proportion ofevery payment of wages or salary made to thatemployee during that month. An employer shallnot make any deduction from the sum required 15to be paid by him under this subsection.

(5) An employer who—

(a) deducts any sum from the wages or sal-ary of an employee in respect of aPRSA contract entered into by that 20employee, or

(b) is obliged (whether under a contract ofemployment, or otherwise) to pay anysum to the relevant custodian accountof a PRSA provider on behalf of or in 25respect of an employee (other than asum deducted from the employee’swages or salary),

shall give or cause to be given to the employeeand the PRSA provider concerned a statement 30in writing not less frequently than once a monthspecifying—

(i) the total amount deducted from theemployee’s salary or wages and remit-ted to the relevant custodian account 35of the PRSA provider, and

(ii) where appropriate, the total amountpaid to the relevant custodian accountof the PRSA provider on behalf of orin respect of the employee (other than 40any amount deducted from theemployee’s wages or salary),

in the preceding month or, if the previous suchstatement was given less than a month before, inthe period since that previous statement was 45given.

(6) The requirements of subsection (5) relatingto an employee shall be regarded as having beensatisfied in respect of a particular deduction if theparticulars of the deduction are, in accordance 50with section 9 of the Payment of Wages Act,1991, included in the statement given to theemployee concerned under that section.

(7) An employer who enables his employees toparticipate in a Standard PRSA pursuant to thissection shall have no duty to those employeesregarding the investment performance of thatStandard PRSA but shall ensure that the PRSA5product is approved in accordance with this Part.

(8) Section 285(2) of the Companies Act, 1963,is amended—

(a) in paragraph (i), by the substitution for‘salaries of employees.’ of ‘salaries of10employees;’, and

(b) by the insertion of the following para-graph after paragraph (i)—

‘(j) any payments due by the com-pany pursuant to arrangements15concerning a Personal Retire-ment Savings Account (withinthe meaning of the Pensions Act,1990) in respect of employees ofthe company whether such pay-20ments are due in respect of thecompany’s contribution underthose arrangements or in respectof such contributions as are pay-able by the employees to the25company under those arrange-ments and which have beendeducted from the wages or sal-aries of employees.’.

(9) Section 7 of the Protection of Employees30(Employers’ Insolvency) Act, 1984, is amendedby the insertion after ‘scheme’ in each placewhere that word occurs of ‘or Personal Retire-ment Savings Account (within the meaning of thePensions Act, 1990)’.35

(10) In this section—

‘excluded employee’ means, in relation to anemployer—

(a) in case the employer is not operating ascheme, each employee of the40employer, and

(b) in any other case, an employee of theemployer who is not eligible for mem-bership of any scheme operated bythe employer and who, if he remains45an employee, will not under the rulesof any scheme operated by theemployer become eligible for mem-bership within 6 months from the dateof commencement of employment50with the employer;

‘membership’ means, in relation to a scheme,membership during which the person concernedwould accrue an entitlement to long servicebenefit.55

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Replacement of 122.—(1) Notwithstanding anything containedbuy-out bonds.

in any other enactment, a person may not effecta policy or contract of insurance of the kind for-merly approved by the Revenue Commissionersfor the purpose of receiving payments from 5retirement benefit schemes approved underChapter 1 of Part 30 of the Taxes ConsolidationAct, 1997, and any such policy or contract whichis purported to be entered into after the com-mencement of section 3 of the Pensions 10(Amendment) Act, 2002, in respect of this sectionshall be void.

(2) The persons who are parties to a contractof the kind referred to in subsection (1) may, bymutual agreement and subject to and in accord- 15ance with regulations, terminate the contract andtransfer the assets the subject of the contract intoone or more than one PRSA.

Additional 123.—(1) On and from the commencement ofvoluntary section 3 of the Pensions (Amendment) Act, 2002, 20contribution

in respect of this section an occupational pensionarrangements.scheme which has as its only purpose the paymentof additional voluntary contributions by a personwho is the sole member of the scheme shall notbe established and any such scheme which is pur- 25ported to be established after such commence-ment shall be void.

(2) If a scheme does not include an optionenabling the payment of voluntary contributions,the employer who operates such a scheme (the 30‘first scheme’) shall, unless he operates anotherscheme which permits payment of voluntary con-tributions by members of the first scheme, subjectto and in accordance with regulations, permit hisemployees who are members of the first scheme 35to participate in one or more than one StandardPRSA and such employees shall be ‘excludedemployees’ for the purposes of subsections (1)and (2) of section 121.

Transfers to defined 124.—(1) The Minister may by regulations 40benefit schemes and make provision in relation to the transfer ofdefined

PRSA assets into a defined benefit scheme or acontributionschemes. defined contribution scheme.

(2) Transfers of the kind referred to in subsec-tion (1) may be made, in accordance with such 45conditions as may be prescribed, to any arrange-ment for the provision of retirement benefitsestablished outside the State to the same extentthat transfers are permitted from a scheme.

Retirement annuity 125.—(1) The persons who are parties to a 50contracts and retirement annuity contract may, by mutualdefined contribution

agreement and subject to and in accordance withschemes.regulations, cancel the contract and effect a trans-fer of the assets the subject of that contract intoone or more than one PRSA. 55

(2) Where a defined contribution scheme is tobe terminated and its assets transferred to one ormore than one PRSA established in respect ofthe members of the scheme, the employer whooperates the scheme shall ensure that all relevant5information relating to the termination of thetrust and the conclusion of a PRSA contract asmay be prescribed is made available in writing tothe members of the said scheme at least 2 monthsbefore any transfer from or termination of the10trust is made or effected.

Review of coverage. 126.—The Minister shall cause—

(a) a report in relation to the extent of theapplication of occupational and otherpensions (other than pensions under15the Social Welfare Acts), in respect ofsuch matters as the Minister considersto be relevant, to the population to beprepared by such persons as the Mini-ster may determine not later than 320years after the commencement ofsection 3 of the Pensions (Amend-ment) Act, 2002, in its entirety and acopy of that report to be furnished tothe Minister, and25

(b) a copy of that report to be laid beforeeach House of the Oireachtas within6 months after its preparation.’’.

4.—(1) The Taxes Consolidation Act, 1997 is amended—

(a) by the substitution of the following for subsection (5)30of section 118:

‘‘(5) Subsection (1) shall not apply to expenseincurred by the body corporate in or in connectionwith the provision for a director or employee, orfor the director’s or employee’s spouse, children or35dependants, of any pension, annuity, lump sum, gra-tuity or other like benefit to be given on the deathor retirement of the director or employee, otherthan an expense incurred by way of contribution bythe body corporate to a PRSA (within the meaning40of Chapter 2A of Part 30).’’,

(b) in Part 26—

(i) by the insertion in section 706(3) of the follow-ing paragraph after paragraph (c):

‘‘(d) any contract with a PRSA provider45(within the meaning of Chapter 2A of Part30) being a contract which was enteredinto for the purposes only of the PRSAconcerned;’’,

and50

39

Amendment ofTaxes ConsolidationAct, 1997.

40

(ii) in paragraph (b) of subsection (2) (inserted bythe Finance Act, 2001) of section 730D—

(I) by the deletion in subparagraph (ii) of‘‘or’’,

(II) by the substitution in subparagraph (iii) of 5‘‘207(1)(b), or’’ for ‘‘207(1)(b),’’, and

(III) by the insertion of the following after sub-paragraph (iii):

‘‘(iv) a PRSA provider (within the mean-ing of Chapter 2A of Part 30) where 10the policy is held by the PRSA pro-vider in the course of the business ofPRSA provider,’’,

(iii) in subsection (3) (inserted by the Finance Act,2001) of section 730E: 15

(I) in paragraph (e)—

(A) by the deletion in subparagraph (ii) of‘‘or, as the case may be,’’,

(B) by the insertion in subparagraph (iii)after ‘‘section 207(1)(b),’’ of ‘‘or, as 20the case may be,’’ and

(C) by the insertion of the following sub-paragraph after subparagraph (iii):

‘‘(iv) a PRSA provider (within themeaning of Chapter 2A of Part 2530)’’, and

(II) by the substitution of the following para-graph for paragraph (f):

‘‘(f) contains an undertaking that shouldthe policy holder cease to be a person 30referred to in subparagraph (i), (ii),(iii), or as the case may be, (iv) ofparagraph (e), the assurance companywill be advised accordingly, and’’,

(c) in subsection (6) of section 739D (inserted by the Fin- 35ance Act, 2000)—

(i) by the substitution in subparagraph (g) of‘‘Schedule 2B,’’ for ‘‘Schedule 2B, or’’,

(ii) by the substitution in subparagraph (h) of‘‘Schedule 2B, or,’’ for ‘‘Schedule 2B,’’, and 40

(iii) by the insertion of the following after subpara-graph (h):

‘‘(i) is a person who is entitled to exemptionfrom income tax and capital gains tax byvirtue of section 787I (as inserted by 45section 4 of the Pensions (Amendment)

Act, 2002) and the units held are assets ofa PRSA (within the meaning of Chapter2A of Part 30) and the PRSA adminis-trator (within the meaning of that Chapter2A) has made a declaration to the invest-5ment undertaking in accordance with para-graph 9A of Schedule 2B,’’,

(d) in Part 30—

(i) by the insertion in section 770(1) of the follow-ing after the definition of ‘‘proprietary10director’’:

‘‘ ‘Personal Retirement Savings Account’ or‘PRSA’ has the same meaning as in Chapter2A of this Part;’’,

(ii) by the insertion in section 772 of the following15after subsection (3C):

‘‘(3D) A retirement benefits scheme shall notcease to be an approved scheme because of anyprovision in the rules of the scheme whereby,either or both—20

(a) a member’s entitlements under the scheme,other than an amount referred to in para-graph (b), may, either on the member’schanging employment or on the schemebeing wound up, be transferred to one or25more than one PRSA to which that mem-ber is the contributor if the followingconditions are satisfied, that is to say—

(i) benefits have not become payable tothe member under the scheme, and30

(ii) the period or the aggregate of theperiods for which the individual hasbeen a member of the scheme or ofany other scheme related to thatindividual’s employment with, or35with any person connected with, theemployer immediately before thesaid transfer is 15 years or less,

(b) an amount equal to the accumulated valueof a member’s contributions to the40scheme, which consist of additional vol-untary contributions made by the mem-ber, may be transferred to one or morethan one PRSA to which that member isthe contributor.’’,45

(iii) by the insertion in section 780 of the following aftersubsection (2):

‘‘(2A) This section shall not apply to the extentthat any repayment of contributions is transferred bythe administrator of the scheme to the administrator50of a PRSA, by way of contribution to a PRSA towhich the employee is the contributor.’’,

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(iv) by the insertion in section 784 of the following aftersubsection (2B) (inserted by the Finance Act, 2000):

‘‘(2C) Notwithstanding anything contained in thisPart, a retirement annuity contract shall not cease tobe an approved contract because of any provision in 5law, whether or not contained in the contract,whereby the parties to the contract may cancel thecontract and effect a transfer of assets into one ormore than one PRSA of which the individual who isa party to that approved contract is the con- 10tributor.’’,

and

(v) by the insertion of the following after Chapter 2—

‘‘Chapter 2A

Personal Retirement Savings Accounts 15

Interpretation 787A.—(1) In this Chapter, unlessand the context otherwise requires—supplemental.

‘additional voluntary PRSA contri-butions’ means contributions made toa PRSA by an employee, who is a 20member of an approved scheme or ofa statutory scheme, which are—

(i) contributions made under arule or part of a rule, as thecase may be, of a retirement 25benefits scheme (in thisdefinition referred to as the‘main scheme’) which pro-vides specifically for thepayment of voluntary con- 30tributions to a PRSA bymembers of the mainscheme, or

(ii) contributions made under aseparately arranged scheme 35approved by the RevenueCommissioners which isassociated with the mainscheme and which providesfor voluntary contributions 40to a PRSA by members ofthe main scheme;

‘approved scheme’ has the same mean-ing as in Chapter 1 of this Part;

‘approved retirement fund’ has the 45meaning assigned to it by section 784A;

‘approved minimum retirement fund’has the meaning assigned to it bysection 784C;

‘contract of employment’ means— 50

(a) a contract of service or appren-ticeship, or

(b) any other contract whereby anindividual agrees withanother person, who is5carrying on the business ofan employment agency(within the meaning of theEmployment Agency Act,1971) and is acting in the10course of that business, todo or perform personallyany work or service for athird person (whether or notthe third person is party to15the contract),

whether the contract is express orimplied or if express, whether it is oralor in writing;

‘contributor’ means an individual who20enters into a PRSA contract with aPRSA provider and an individual shallbe regarded as a contributor to a PRSAnotwithstanding that all contributionsare made by that individual’s employer;25

‘director’, in relation to a companyincludes—

(a) in the case of a company theaffairs of which are man-aged by a board of directors30or similar body, a memberof that board or body,

(b) in the case of a company theaffairs of which are man-aged by a single director or35similar person, that directoror person,

(c) in the case of a company theaffairs of which are man-aged by the members them-40selves, a member of thatcompany,

and includes a person who is to be orhas been a director;

‘distribution’ has the same meaning as45in the Corporation Tax Acts;

‘employee’—

(a) means a person of any age,who has entered into orworks under (or where the50employment has ceased,entered into or worked

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under) a contract ofemployment and references,in relation to an employer,to an employee shall be con-strued as references to an 5employee employed by thatemployer; and for the pur-poses of this Chapter, a per-son holding office under, orin the service of, the State 10(including a civil servantwithin the meaning of theCivil Service RegulationAct, 1956) shall be deemedto be an employee 15employed by the State orGovernment, as the casemay be, and an officer orservant of a local authorityfor the purposes of the 20Local Government Act,2001, or of a harbour auth-ority, health board orvocational education com-mittee shall be deemed to 25be an employee employedby the authority, board orcommittee, as the case maybe), and

(b) in relation to a company, 30includes a director or otherofficer of the company andany other person taking partin the management of theaffairs of the company; 35

‘employer’ means, in relation to anemployee, the person with whom theemployee has entered into, or for whomthe employee works under (or, wherethe employment has ceased, entered 40into or worked under), a contract ofemployment, subject to the qualifi-cation that the person, who under acontract of employment referred to inparagraph (b) of the definition of ‘con- 45tract of employment’ is liable to pay thewages of the individual concerned, inrespect of the work or service con-cerned shall be deemed to be the indi-vidual’s employer; 50

‘market value’ shall be construed inaccordance with section 548;

‘PPS Number’, in relation to an individ-ual, means that individual’s PersonalPublic Service Number within the 55meaning of section 223 of the SocialWelfare (Consolidation) Act, 1993;

‘Personal Retirement Savings Account’means a personal retirement savingsaccount established by a contributorwith a PRSA provider under the termsof a PRSA contract and the expression5‘PRSA’ shall be construed accordingly;

‘PRSA administrator’ means the PRSAprovider or a person to whom a PRSAprovider delegates in pursuance of PartX of the Pensions Act, 1990 its adminis-10trative functions in relation to a PRSA,including a person appointed by thePRSA provider in accordance withsection 787G(5);

‘PRSA assets’ means the assets held on15behalf of a contributor in a PRSA andincludes the value of any contributionsmade to that PRSA by any employer ofthe contributor;

‘PRSA contract’ means a contract20entered into between a PRSA providerand a contributor in respect of a PRSAproduct;

‘PRSA contribution’ means a contri-bution within the meaning of Part X of25the Pensions Act, 1990;

‘PRSA product’ means a PRSA product(within the meaning of Part X of thePensions Act, 1990) that for the timebeing stands approved under section 9430of that Act;

‘PRSA provider’ has the same meaningas in Part X of the Pensions Act, 1990;

‘relevant payment’ in relation to aPRSA means any payment, including a35distribution, made by reason of rightsarising as a result of a PRSA contractand includes any annuity payable byreason of such rights;

‘retirement annuity contract’ means a40contract approved by the RevenueCommissioners in accordance withChapter 2 of this Part;

‘retirement benefits scheme’ has thesame meaning as in Chapter 1 of this45Part;

‘specified individual’, in relation to ayear of assessment, means an individualwhose relevant earnings for the year ofassessment were derived wholly or50mainly from an occupation or pro-fession specified in Schedule 23A;

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‘statutory scheme’ has the same mean-ing as in Chapter 1 of this Part.

(2) Subject to subsection (1), a wordor expression that is used in this Chap-ter and is also used in Part X of the Pen- 5sions Act, 1990 has, except where thecontext otherwise requires, the samemeaning in this Chapter as it has in thatPart.

Relevant 787B.—(1) For the purposes of this 10earnings and Chapter but subject to subsection (2),net relevant

‘relevant earnings’, in relation to anearnings.individual, means any income of theindividual chargeable to tax for theyear of assessment in question, being 15any of the following—

(a) income arising in respect ofremuneration from an officeor employment of profitheld by the individual, 20

(b) income from any propertywhich is attached to orforms part of the emolu-ments of any such office oremployment of profit held 25by the individual, or

(c) income which is chargeableunder Schedule D and isimmediately derived by theindividual from the carrying 30on or exercise by the indi-vidual of his or her trade orprofession either as an indi-vidual or, in the case of apartnership, as a partner 35personally acting in thepartnership;

but does not include any remunerationfrom an investment company of whichthe individual is a proprietary director 40or a proprietary employee.

(2) For the purposes of this Chapter,the relevant earnings of an individualshall not be treated as the relevantearnings of his or her spouse, notwith- 45standing that the individual’s incomechargeable to tax is treated as his or herspouse’s income.

(3) For the purposes of relief underthis Chapter, an individual’s relevant 50earnings shall be those earnings beforegiving effect to any deduction to bemade from those earnings in respect of

a loss or in respect of a capital allow-ance (within the meaning of section 2),and references to income in this Chap-ter (other than references to totalincome) shall be construed similarly.5

(4) For the purposes of this Chapter,‘net relevant earnings’, in relation to anindividual and subject to subsections (5)to (7), means the amount of the individ-ual’s relevant earnings for the year of10assessment in question less the amountof any deductions to be made from therelevant earnings in computing the indi-vidual’s total income for that year,being either—15

(a) deductions in respect of pay-ments made by the individ-ual, or

(b) deductions in respect of lossesor of such allowances men-20tioned in subsection (3),being losses or allowancesarising from activities, pro-fits or gains of which wouldbe included in computing25relevant earnings of theindividual or of the individ-ual’s spouse for the year ofassessment.

(5) Where in any year of assessment30for which an individual claims and isallowed relief under this Chapter thereis to be made in computing the totalincome of the individual or of the indi-vidual’s spouse a deduction in respect of35any such loss or allowance of the indi-vidual referred to in subsection (4)(b),and the deduction or part of it is to beso made from income other than rel-evant earnings, then, the amount of the40deduction made from that other incomeshall be treated as reducing the individ-ual’s net relevant earnings for sub-sequent years of assessment and shallbe deducted as far as may be from those45of the following year, whether or notthe individual claims or is entitled toclaim relief under this Chapter for thatyear, and in so far as it cannot be sodeducted, then from those of the next50year, and so on.

(6) Where an individual’s income forany year of assessment consists partly ofrelevant earnings and partly of otherincome, then, as far as may be, any55deductions to be made in computing theindividual’s total income, and whichmay be treated in whole or in part

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either as made from relevant earningsor as made from other income, shall betreated for the purposes of this sectionas being made from those relevant earn-ings in so far as they are deductions in 5respect of any such loss referred to insubsection (4)(b) and otherwise asbeing made from that other income.

(7) An individual’s net relevant earn-ings for any year of assessment shall be 10computed without regard to any reliefto be given for that year under thisChapter either to the individual or tothe individual’s spouse.

(8) Notwithstanding anything in this 15section, for the purposes of relief underthis Chapter an individual’s net relevantearnings shall not exceed \254,000 butthis subsection shall not apply asregards relief for additional voluntary 20PRSA contributions.

PRSAs — 787C.—(1) Subject to the provisionsmethod of of this Chapter, relief from income taxgranting shall be given in respect of contri-relief for

butions to a PRSA by an individual 25PRSAchargeable to tax in respect of relevantcontributions.earnings from any trade, profession,office or employment carried on orheld by that individual.

(2) Where relief is to be given under 30this Chapter in respect of any contri-bution made by an individual, theamount of that contribution shall, sub-ject to this section, be deducted from orset off against the individual’s relevant 35earnings for the year of assessment inwhich the contribution is paid.

(3) Where in relation to a year ofassessment a contribution to a PRSA ismade after the end of the year of 40assessment but on or before the speci-fied return date for the chargeable per-iod (within the meaning of Part 41) thepayment may, if the individual so electson or before that date, be treated for 45the purposes of this section as paid inthe earlier year (and not in the year inwhich it is paid); but where—

(a) the amount of that contri-bution, together with any 50contributions made by theindividual in the year towhich the assessmentrelates (or treated as sopaid by virtue of any pre- 55vious election under thissubsection), exceeds the

maximum amount of thereduction which may bemade under this Chapter inthe individual’s relevantearnings for that year, or5

(b) the amount of that PRSA con-tribution itself exceeds theincrease in that maximumamount which is due to tak-ing into account the income10on which the assessment ismade,

the election shall have no effect asrespects the excess.

(4) Where in any year of assessment15a reduction or a greater reductionwould be made under this section in therelevant earnings of an individual butfor an insufficiency of net relevantearnings, the amount of the reduction20which would be made but for thatreason, less the amount of anyreduction which is made in that year,shall be carried forward to the nextyear of assessment, and shall be treated25for the purposes of relief under thisChapter as the amount of a qualifyingcontribution paid in that next year ofassessment.

(5) If and in so far as an amount once30carried forward under subsection (4)(and treated as the amount of a qualify-ing payment made in the next year ofassessment) is not deducted from or setoff against the individual’s net relevant35earnings for that year of assessment, itshall be carried forward again to thefollowing year of assessment (andtreated as the amount of a qualifyingpayment made in that year of40assessment), and so on for succeedingyears.

(6) Where relief under this Chapterfor any year of assessment is claimedand allowed (whether or not relief is45then to be given for that year), andafterwards there is made any additionalassessment, alteration of an assessment,or other adjustment of the claimant’sliability to tax, there shall be made also50such adjustments, if any, as are conse-quential thereon in the relief allowedor given under this Chapter for that orany subsequent year of assessment.

(7) Where relief under this Chapter55is claimed and allowed for any year of

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assessment in respect of any contri-bution, relief shall not be given inrespect of that contribution under anyother provision of the Income Tax Actsfor the same or a later year of 5assessment.

Claims to 787D.—(1) Relief shall not be givenrelief. under this Chapter in respect of a con-

tribution to a PRSA except on a claimmade to and allowed by the inspector, 10but any person aggrieved by anydecision of the inspector on any suchclaim may, on giving notice in writingto the inspector within 21 days afterthe notification to that person of the 15decision, appeal to the Appeal Com-missioners.

(2) The Appeal Commissioners shallhear and determine an appeal to themunder subsection (1) as if it were an 20appeal to them against an assessmentto income tax, and the provisions of theIncome Tax Acts relating to therehearing of an appeal and to the state-ment of a case for the opinion of the 25High Court on a point of law shall, withthe necessary modifications, applyaccordingly.

Extent of 787E.—(1) Subject to this section,relief. the amount which may be deducted or 30

set off in any year in respect of contri-butions made by, or deemed in accord-ance with subsection (2) to have beenmade by, an individual to one or morePRSA products, hereafter in this 35section referred to as the maximumallowable contribution, shall not bemore than—

(a) in the case of an individualwho at any time during the 40year of assessment was ofthe age of 30 years or overbut had not attained the ageof 40, 25 per cent,

(b) in the case of an individual 45who at any time during theyear of assessment was ofthe age of 40 years or overor who for the year ofassessment was a specified 50individual, 30 per cent,

(c) in any other case, 15 per cent,

of the individual’s net relevant earningsfor that year of assessment.

(2) Where for a year of assessment asum is chargeable to tax in accordancewith section 118(5) in respect of a con-tribution by an employer to a PRSA,the employee shall, in addition to any5contributions actually made by theemployee, be deemed, for the purposesof this section, to have made contri-butions to the said PRSA in that yearof assessment equal to such sum.10

(3) Where during a year of assess-ment an individual is a member eitherof an approved scheme or of a statutoryscheme (hereafter in this subsectionreferred to as a ‘scheme’) in relation to15an office or employment, the followingprovisions shall apply, that is to say—

(a) relief shall be allowed underthis Chapter as regards rel-evant earnings from that20office or employment onlyin respect of contributionsthat are additional volun-tary PRSA contributions,

(b) notwithstanding subsection25(1), the amount which maybe deducted or set off inthat year of assessment inrespect of such contri-butions against the individ-30ual’s net relevant earningsfrom that office or employ-ment shall not be morethan—

(i) in the case of an individ-35ual who at any timeduring the year ofassessment was of theage of 30 years or overbut had not attained40the age of 40 years, 20per cent,

(ii) in the case of an individ-ual who at any timeduring the year of45assessment was of theage of 40 years or overbut had not attainedthe age of 50 years, 25per cent,50

(iii) in the case of an individ-ual who at any timeduring the year ofassessment was of theage of 50 years or over,5530 per cent, and

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(iv) in any other case, 15 percent,

of the remuneration for thatyear of the office or employ-ment in respect of which the 5contributions are made,reduced by the amount ofany contributions of the indi-vidual in the year to anyscheme related to the office 10or employment of which heor she is a member,

(c) the amount of the net relevantearnings of the individual inrespect of which any other 15PRSA contributions are tobe deducted or set off shallbe reduced by the amountof the remuneration fromsuch office or employment, 20and

(d) notwithstanding sections 787Kand 787L, the aggregatebenefits under—

(i) all schemes, of which 25the individual is amember, related to theoffice or employment,and

(ii) all Personal Retirement 30Savings Accounts towhich the individual isthe contributor ofadditional voluntaryPRSA contributions, 35

shall not exceed the maximumbenefits that could be pro-vided for the individual by ref-erence to section 772.

(4) Notwithstanding subsection (1), 40where the maximum allowable contri-bution would but for this subsection beless than \1,525, subsection (1) shallapply as if the said maximum allowablecontribution were \1,525. 45

(5) Where an individual is entitled torelief for a year of assessment underChapter 2 of this Part in respect of aqualifying premium, the maximumallowable contribution for that year of 50assessment, other than additional vol-untary PRSA contributions, shall bereduced by the amount of such relief.

Transfers 787F.—To the extent that any con-to PRSAs. tribution to one or more than one

PRSA is made from—

(a) the value of accrued rightsunder a retirement annuity5contract,

(b) the value of accrued rightsunder an approved schemeor a statutory scheme, or

(c) a repayment of contributions10to which section 780(2)would, but for subsection(2A) (inserted by the Pen-sions (Amendment) Act,2002) of that section, other-15wise apply,

it shall not be taken into account forthe purposes of section 787E and norelief shall be allowed under this Chap-ter in respect of such a contribution.20

Taxation of 787G.—(1) Subject to subsectionspayments from (2), (3) and (4)—a PRSA.

(a) the amount or value of anyassets that a PRSA adminis-trator makes available to, or25pays to, a PRSA contribu-tor or to any other person,including any annuitywhere the whole or part ofthe consideration for the30grant of the annuity con-sisted of assets which, at thetime of application of thesaid assets for the purchaseof the annuity, were PRSA35assets, shall be treated as apayment to the PRSA con-tributor of emoluments towhich Schedule E appliesand, accordingly, the pro-40visions of Chapter 4 of Part42 shall apply to any suchpayment or amount treatedas a payment, and

(b) the PRSA administrator shall45deduct tax from the assetsat the higher rate for theyear of assessment in whichthe assets are made avail-able unless the PRSA50administrator has receivedfrom the Revenue Com-missioners a certificate oftax credits and standardrate cut-off point or a tax55

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deduction card for that yearin respect of the PRSA con-tributor.

(2) A PRSA administrator shall beliable to pay to the Collector-General 5the income tax which the PRSA admin-istrator is required to deduct from anyassets of a PRSA by virtue of thissection and the individual beneficiallyentitled to assets held in a PRSA, 10including the personal representativesof a deceased individual who was soentitled prior to that individual’s death,shall allow such deduction; but wherethere are no funds or insufficient funds 15available out of which the PRSAadministrator may satisfy the taxrequired to be deducted, the amount ofsuch tax for which there are insufficientfunds available shall be a debt due to 20the PRSA administrator from the indi-vidual beneficially entitled to the assetsin the PRSA or from the estate of thedeceased individual, as the case maybe. 25

(3) Subsection (1) shall not applywhere the assets made available from aPRSA are—

(a) an amount made available, atthe time assets of the PRSA 30are first made available tothe PRSA contributor, byway of lump sum notexceeding 25 per cent of thevalue of the assets in the 35PRSA at that time or, in thecase of a PRSA to whichadditional voluntary PRSAcontributions were made,an amount not exceeding 40the amount that may bepaid by way of lump sum inaccordance with section772(3)(f) in conjunctionwith the rules of the 45scheme,

(b) an amount transferred to anapproved retirement fundor to an approved minimumretirement fund in accord- 50ance with section 787H,

(c) an amount made available tothe personal representa-tives of the PRSA contribu-tor in accordance with 55section 787K(1)(c)(iii),

(d) a transfer of assets from aPRSA to another PRSA, anapproved scheme or a statu-tory scheme where—

(i) in relation to that5other PRSA, approvedscheme or statutoryscheme the contributorto the first-mentionedPRSA is either a con-10tributor or a memberas the case may be, and

(ii) the first - mentionedPRSA is not a PRSAin respect of which a15lump sum to whichparagraph (a) applieshas been paid or madeavailable.

(4) For the purposes of this Chapter,20the circumstances in which a PRSAadministrator shall be treated as mak-ing assets of a PRSA available to anindividual shall include—

(a) the making of a relevant pay-25ment by the PRSA admin-istrator,

(b) any circumstances wherebyassets cease to be assets ofthe PRSA, and30

(c) any circumstances wherebyassets cease to be ben-eficially owned by the con-tributor to the PRSA.

(5) At any time when a PRSA35administrator or a PRSA provider, asthe case may be—

(a) is not resident in the State, or

(b) is not trading in the Statethrough a fixed place of40business,

the PRSA provider shall ensure thatthere is a person resident in the Stateand appointed by the PRSA providerto be responsible for the discharge of45all duties and obligations relating toPersonal Retirement Savings Accountswhich are imposed on the PRSAadministrator or the PRSA provider byvirtue of this Chapter and shall notify50the Revenue Commissioners of theidentity of that person and the fact ofthat person’s appointment.

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(6) Notwithstanding subsection (1),where assets of a PRSA are treatedunder subsection (4) as having beenmade available to an individual, theprovisions of section 784A(4) shall 5apply as if assets of that PRSA at thetime of death of that individual wereassets of an approved retirement fund.

Approved 787H.—(1) At any time assets of aRetirement PRSA are allowed to be made avail- 10Fund option.

able to a beneficiary in accordancewith section 787K, that individual mayopt to have those assets transferred toan approved retirement fund and thePRSA administrator shall make that 15transfer.

(2) The assets that a PRSA adminis-trator shall transfer to an approvedretirement fund in accordance withsubsection (1) shall be the assets avail- 20able in the PRSA at the time the elec-tion under that subsection is madeless—

(a) any lump sum the PRSAadministrator is permitted 25to pay without deduction oftax in accordance withsection 787G(3)(a), and

(b) any amount the PRSA admin-istrator is required to trans- 30fer to an approved mini-mum retirement fund inaccordance with section784C, by virtue of subsec-tion (3). 35

(3) Where an individual opts inaccordance with subsection (1),sections 784A to 784D shall apply as ifthat option were an option in accord-ance with section 784(2A). 40

Exemption of 787I.—(1) Exemption from incomePRSA. tax shall, on a claim being made in that

behalf, be allowed in respect of incomederived from investments or depositsof a PRSA if, or to such extent as the 45Revenue Commissioners are satisfiedthat, it is income from investments ordeposits held for the purposes of thePRSA.

(2) (a) In this subsection, ‘financial 50futures’ and ‘tradedoptions’ mean respectivelyfinancial futures and tradedoptions for the time beingdealt in or quoted on any 55

futures exchange or anystock exchange, whether ornot that exchange is situ-ated in the State.

(b) For the purposes of subsec-5tion (1), a contract enteredinto in the course of dealingin financial futures ortraded options shall beregarded as an investment.10

(3) Exemption from income taxshall, on a claim being made in thatbehalf, be allowed in respect of under-writing commissions if, or to suchextent as the Revenue Commissioners15are satisfied that, the underwritingcommissions are applied for the pur-poses of the PRSA, and in respect ofwhich the administrator of the PRSAwould, but for this subsection, be20chargeable to tax under Case IV ofSchedule D.

Allowance to 787J.—(1) For the purposes of thisemployer. section—

(a) a reference to a ‘chargeable25period’ shall be construedas a reference to a ‘charge-able period or its basis per-iod’ (within the meaning ofsection 321), and30

(b) in relation to an employerwhose chargeable period isa year of assessment, ‘basisperiod’ means the period onthe profits or gains of which35income tax for that year ofassessment is to be finallycomputed for the purposesof Case I or II of ScheduleD in respect of the trade,40profession or vocation ofthe employer.

(2) Subject to subsection (3), anysum paid by an employer by way ofcontribution under a PRSA contract of45an employee shall for the purposes ofCase I or II of Schedule D and ofsections 83 and 707(4) be allowed to bededucted as an expense, or expense ofmanagement, incurred in the charge-50able period in which the sum is paid butno other sum shall for those purposesbe allowed to be deducted as anexpense, or expense of management, inrespect of the making, or any provision55for the making, of any contributionsunder the PRSA contract.

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(3) The amount of an employer’scontributions which may be deductedunder subsection (2) shall not exceedthe amount contributed by thatemployer to Personal Retirement Sav- 5ings Accounts in respect of employeesin a trade or undertaking in respect ofthe profits of which the employer isassessable to income tax or corporationtax, as the case may be. 10

Revenue 787K.—(1) Subject to subsection (2)approval of and to sections 787H and 787L, thePRSA Revenue Commissioners shall notproducts.

approve, for the purposes of section94(3) of the Pensions Act, 1990, a 15PRSA product (within the meaning ofPart X of that Act) unless it appears tothem to satisfy the followingconditions—

(a) that the arrangements in 20respect of that product willbe entered into by an indi-vidual with a person law-fully carrying on in theState the business of a 25PRSA provider,

(b) that it includes provision sec-uring that no annuity pay-able under it shall be cap-able in whole or in part of 30surrender, commutation orassignment, and

(c) that it does not—

(i) provide for the paymentof any sum or the mak- 35ing available of PRSAassets, by that personduring the life of theindividual of any sumexcept— 40

(I) sums payable bymeans of annuityto the individual,

(II) a sum payable with-out deduction of 45tax by way of lumpsum, in accord-ance with section787G(3)(a),

(III) assets transferred 50to an approvedretirement fund orto an approved

minimum retire-ment fund, inaccordance withsection 787H(1),or5

(IV) assets made avail-able to the PRSAcontributor by thePRSA adminis-trator, where the10PRSA adminis-trator retains suchassets as would berequired to betransferred to an15approved mini-mum retirementfund if the PRSAcontributor optedin accordance with20section 787H(1),

(ii) provide for the annuityor other sums payableto the individual tocommence or for assets25to be made available tothe individual beforethe individual attainsthe age of 60 years orafter he or she attains30the age of 75 years,

(iii) provide for the paymentby that person of anyother sums exceptsums payable by means35of annuity to the indi-vidual’s widow or wid-ower and any sumswhich, in the event ofno annuity or other40benefits becoming pay-able either to the indi-vidual or to a widow orwidower, are payableto the individual’s per-45sonal representativesby way of transfer ofthe PRSA assets to theestate of the PRSAcontributor,50

(iv) provide for the annuity,if any, payable to awidow or widower ofthe individual to be ofa greater annual55amount than that paidor payable to the indi-vidual, or

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(v) provide for the paymentof any annuity other-wise than for the life ofthe annuitant.

(2) The Revenue Commissioners 5may, if they think fit and subject to anyconditions they think proper to attachto the approval under section 94 of thePensions Act, 1990, approve, for thepurposes of section 94(3) of that Act, a 10product otherwise satisfying the con-ditions referred to in subsection (1),notwithstanding that the product pro-vides for one or more of the followingmatters— 15

(a) the payment to the individualof an annuity or other sumsor the making available ofassets of the PRSA to theindividual commencing 20before he or she attains theage of 60 years, where theannuity or other sums arepayable on the individualbecoming permanently 25incapable through infirmityof mind or body of carryingon his or her own occu-pation or any occupation ofa similar nature for which 30he or she is trained or fitted,

(b) in the case of an individualbeing an employee, the pay-ment to the individual of anannuity or other sums or 35the making available ofassets of the PRSA to theindividual commencing onretirement at age 50 orover, 40

(c) where the individual’s occu-pation is one in which per-sons customarily retirebefore attaining the age of60 years, the payment of the 45annuity or other sums tocommence or the makingavailable of assets of thePRSA to commence beforethe individual attains that 50age (but not before he orshe attains the age of 50years),

(d) the annuity payable to anyperson to continue for a 55term certain (not exceeding10 years) notwithstandinghis or her death within that

term, or the annuity pay-able to any person toterminate, or be suspended,on marriage (or remar-riage) or in other cir-5cumstances,

(e) in the case of an annuity whichis to continue for a termcertain, the annuity to beassignable by will and, in10the event of any persondying entitled to theannuity, the annuity to beassignable by his or her per-sonal representatives in the15distribution of the estate soas to give effect to a testa-mentary disposition, or tothe rights of those entitledon intestacy or to an appro-20priation of the annuity to alegacy or to a share orinterest in the estate.

(3) Where, having regard to the pro-visions of this Chapter, the Revenue25Commissioners are, at any time, of theopinion that approval of a productunder section 94 of the Pensions Act,1990, ought to be withdrawn they shallgive notice in writing to the Pensions30Board of that opinion and such a noticeshall specify the grounds on which theyformed that opinion.

(4) Where approval of a product iswithdrawn pursuant to section 97 of the35Pensions Act, 1990, there shall be madesuch assessments or amendment ofassessments as may be appropriate forthe purpose of withdrawing any reliefgiven under this Chapter consequent40on the grant of the approval.

Transfers to 787L.—(1) In addition to theand from requirements imposed by section 787KPRSA.

for the granting of such approval, theRevenue Commissioners shall not45approve, for the purposes of section94(3) of the Pensions Act, 1990, aPRSA product (within the meaning ofPart X of that Act) unless the productprovides that the individual who has50entered into the arrangements inrespect of it may require a sum rep-resenting the value of his or heraccrued rights under the product—

(a) to be paid by the person with55whom the individual hasentered into such arrange-ments to such other person

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as the individual may spec-ify, and

(b) to be applied by such otherperson in payment either ofa contribution under a 5PRSA contract madebetween the individual andthat other person or a con-tribution under anapproved scheme of which 10the individual is a member.

(2) Without prejudice to subsection(1), the Revenue Commissioners shallnot approve, for the purposes of section94(3) of the Pensions Act, 1990, a 15PRSA product (within the meaning ofPart X of that Act) unless the productprovides that the PRSA provider mayreceive contributions from—

(a) another PRSA in respect of 20which the contributor to thefirst-mentioned PRSA isthe contributor,

(b) either an approved scheme ora statutory scheme in 25respect of which the con-tributor to the first-men-tioned PRSA is a member,or

(c) a contract approved by the 30Revenue Commissioners inaccordance with Chapter 2of this Part to which thecontributor to the first-mentioned PRSA is a party. 35

(3) References in subsection (1) tothe individual by whom a contract ismade include references to any widow,widower or dependant having accruedrights under the contract.’’, 40

(vi) in section 788(2)—

(I) by the substitution in paragraph (e) of ‘‘capital),’’for ‘‘capital), or,’’,

(II) by the substitution in paragraph (f) of ‘‘784C, or’’for ‘‘784C.’’, and 45

(III) by the insertion of the following paragraph afterparagraph (f):

‘‘(g) any annuity where the whole or part of theconsideration for the grant of the annuityconsisted of assets which, at the time of the 50application of the said assets for the pur-chase of the annuity, were PRSA assets,within the meaning of Chapter 2A of thisPart.’’,

(e) in part 42, by the substitution, in subparagraph (ii) of para-graph (g) (inserted by the Finance Act, 2001) of section986(1) of ‘‘Chapter 1 or Chapter 2A of Part 30’’ for‘‘Chapter 1 of Part 30’’, and

(f) in Schedule 2B, by the insertion of the following after para-5graph 9:

‘‘Declaration of PRSA Administrator

9A. The declaration referred to in section 739D(6)(i) is a dec-laration in writing to the investment undertaking which—

(a) is made by a PRSA administrator (in this paragraph10referred to as the ‘declarer’) in respect of units whichare assets in a PRSA,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorisedby the Revenue Commissioners,15

(d) declares that, at the time when the declaration is made,the units in respect of which the declaration ismade—

(i) are assets of a PRSA, and

(ii) are managed by the declarer for the individual20who is beneficially entitled to the units,

(e) contains the name, address and tax reference numberof the individual referred to in subparagraph (d),

(f) contains an undertaking by the declarer that if the unitscease to be assets of the PRSA, including a case25where the units are transferred to another PRSA,the declarer will notify the investment undertakingaccordingly, and

(g) contains such other information as the Revenue Com-missioners may reasonably require for the purposes30of Chapter 1A of Part 27.’’.

PART 3

Pensions Ombudsman

5.—The Principal Act is amended by the insertion of the followingPart after Part X (inserted by this Act):35

‘‘PART XI

Pensions Ombudsman

Interpretation (Part 126.—(1) In this Part—XI).

‘actual or potential beneficiary’ means a member,an external member, any person who has been a40member, any surviving dependant of a deceasedmember, any person claiming to be a member ora surviving dependant of a deceased member, acontributor to a PRSA, a personal representativeof a deceased member or deceased contributor or45

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Insertion of Part XIin Principal Act.

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a widow or widower of a deceased member ordeceased contributor;

‘civil servant’ has the meaning assigned to it bythe Civil Service Regulation Act, 1956;

‘dependant’ means a dependant within the mean- 5ing of the rules of the scheme in question;

‘establishment day’ means the day on whichsection 5 of the Pensions (Amendment) Act, 2002,commences;

‘party’ in relation to a complaint or reference 10under this Part, means—

(a) a person by whom, or on whose behalf,the complaint or reference was made,

(b) a person responsible for the manage-ment of the scheme or PRSA to which 15the complaint or reference relates;

‘superannuation benefit’ means a pension, gra-tuity or other allowance payable on resignation,retirement or death.

(2) In this Part, references to an act include 20references to an omission and references to thedoing of an act include references to the makingof an omission.

(3) For the purposes of this Part, the followingpersons shall be deemed to be responsible for the 25management of an occupational pension scheme:

(a) any trustee of the scheme;

(b) any former trustee of the scheme;

(c) any employer to whom the schemerelates; 30

(d) any former employer to whom thescheme relates; or

(e) such other person or category of personsas may be prescribed.

(4) For the purposes of this Part, the following 35persons shall be deemed to be responsible for themanagement of a PRSA:

(a) any provider;

(b) any former provider;

(c) any employer; 40

(d) any former employer; or

(e) such other person or category of personsas may be prescribed.

Establishment of 127.—On the establishment day there shallPensions

stand established the office of Pensions Ombuds-Ombudsman.man and the holder of the office shall be knownas the Pensions Ombudsman.

Appointment of 128.—(1) The Pensions Ombudsman shall be5Pensions

appointed by the Minister and, subject to the pro-Ombudsman.visions of this Act, he shall hold office on suchterms and conditions as the Minister may, withthe consent of the Minister for Finance,determine.10

(2) A person shall be not more than 61 yearsof age upon first being appointed to the office ofPensions Ombudsman.

(3) A person appointed to be the PensionsOmbudsman whose term of office expires by15effluxion of time shall be eligible forreappointment as the Pensions Ombudsman.

Term of office of 129.—(1) Subject to the provisions of thisPensions

section, a person appointed to be the PensionsOmbudsman.Ombudsman shall hold office for a term of 620years.

(2) (a) The Minister may at any time removethe Pensions Ombudsman from officeif, in the Minister’s opinion, the Pen-sions Ombudsman has become25incapable through ill-health of per-forming his functions, or has commit-ted stated misbehaviour, or hisremoval appears to the Minister to benecessary for the effective perform-30ance of the functions of the office.

(b) If the Pensions Ombudsman isremoved from office under this sub-section, the Minister shall cause to belaid before each House of the35Oireachtas a statement of the reasonsfor the removal.

(3) The Pensions Ombudsman may at any timeresign his office by letter addressed to theMinister.40

(4) A person appointed to be the PensionsOmbudsman shall in any case vacate the office onattaining the age of 67 years.

(5) (a) Where a person who holds the office ofPensions Ombudsman is—45

(i) nominated as a member of SeanadEireann,

(ii) nominated as a candidate for elec-tion to either House of theOireachtas, the European Parlia-50ment or a local authority,

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(iii) regarded pursuant to Part XIII ofthe Second Schedule to the Euro-pean Parliament Elections Act,1997, as having been elected tothe European Parliament, or 5

(iv) co-opted to fill a casual vacancy inthe membership of a localauthority,

he shall cease to hold the office ofPensions Ombudsman. 10

(b) A person who is for the time beingentitled—

(i) under the Standing Orders ofeither House of the Oireachtas tosit therein, 15

(ii) under the rules of procedure ofthe European Parliament to sittherein, or

(iii) under the standing orders of alocal authority to sit as a member 20thereof,

shall, while so entitled, be disqualifiedfrom holding the office of PensionsOmbudsman.

(6) A person who holds the office of Pensions 25Ombudsman shall not hold any other office oremployment in respect of which emoluments arepayable.

Salary and 130.—(1) There shall be paid to the holder ofsuperannuation. the office of Pensions Ombudsman such 30

remuneration and allowances for expenses as theMinister, with the consent of the Minister for Fin-ance, may determine.

(2) The Minister shall, with the consent of theMinister for Finance, make and carry out such 35scheme or schemes for the granting of superannu-ation benefits to or in respect of the PensionsOmbudsman as he may think fit.

(3) Every such scheme shall fix the conditionsfor eligibility for payment of superannuation 40benefits under it and different conditions may befixed by reference to the different circumstancespertaining to the particular officeholder con-cerned or his dependants at or before the timethe question of eligibility for such payment falls 45to be considered.

(4) The Minister may at any time, with theconsent of the Minister for Finance, make andcarry out a scheme or schemes amending orrevoking a scheme under this section. 50

(5) No superannuation benefit shall be grantedby the Minister nor shall any other arrangementbe entered into by the Minister for the provisionof such a benefit to or in respect of the PensionsOmbudsman otherwise than in accordance with a5scheme under this section or, if the Minister, withthe consent of the Minister for Finance, sanctionsthe granting of such a benefit, in accordance withthat sanction.

(6) A scheme under this section shall be laid10before each House of the Oireachtas as soon asmay be after it is made and if a resolution annul-ling the scheme is passed by either such Housewithin the next twenty-one days on which thatHouse has sat after the scheme is laid before it,15the scheme shall be annulled accordingly, butwithout prejudice to the validity of anything pre-viously done thereunder.

(7) If any dispute arises as to the claim of anyperson to, or the amount of, any superannuation20benefit payable in pursuance of a scheme orschemes under this section, such dispute shall besubmitted to the Minister who shall refer it to theMinister for Finance, whose decision shall befinal.25

Functions of 131.—(1) The Pensions Ombudsman shall bePensions independent in the performance of his functions.Ombudsman.

(2) The Pensions Ombudsman may investigateand determine the following complaints anddisputes—30

(a) a complaint made to him by or on behalfof an actual or potential beneficiaryof an occupational pension scheme orPRSA, who alleges that he has sus-tained financial loss occasioned by an35act of maladministration done by oron behalf of a person responsible forthe management of that scheme or, asappropriate, PRSA;

(b) any dispute of fact or law that arises in40relation to an act done by or on behalfof a person responsible for the man-agement of the scheme or, as appro-priate, PRSA, and that is referred tohim by or on behalf of the actual or45potential beneficiary; and

(c) any other complaint or dispute fallingwithin a category of complaint or dis-pute prescribed by regulations madeby the Minister, with the consent of50the Minister for Finance, as a categoryof complaint or dispute to which thissubsection shall apply.

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(3) A complaint or reference under thissection shall be made to the Pensions Ombuds-man in writing in such form as may from time totime be prescribed by regulations made by theMinister, after consultation with the Minister for 5Finance.

(4) A complaint or reference under thissection shall be made to the PensionsOmbudsman—

(a) subject to subsection (5), within which- 10ever of the following periods is thelast to expire—

(i) 6 years from the date of the actgiving rise to the complaint orreference, or 15

(ii) 3 years from the earlier of the fol-lowing 2 dates, namely, the dateon which the person making thecomplaint or reference firstbecame aware of the said act and 20the date on which that personought to have become aware ofthat act, or

(b) subject to subsection (5), within suchlonger period as the Pensions 25Ombudsman may allow if it appearsto him that there are reasonablegrounds for requiring a longer periodand that it would be just and reason-able so to extend the period. 30

(5) The Pensions Ombudsman may investigatea complaint or dispute under this section notwith-standing that the act giving rise to the complaintor dispute was done prior to the establishmentday if, and only if, the complaint or reference is 35made to the Pensions Ombudsman within theperiod of 6 years from the date of the act givingrise to the complaint or reference.

(6) The Pensions Ombudsman shall not inves-tigate or determine a complaint or dispute unless 40the procedures referred to in section 132 havebeen resorted to and exhausted in accordancewith their terms.

(7) The Pensions Ombudsman shall not inves-tigate or determine a complaint or dispute— 45

(a) if, at the time of the making of the com-plaint or the reference of the dispute,there are proceedings before anycourt in respect of any matter whichwould be the subject of the inves- 50tigation;

(b) if the scheme or PRSA is of a descriptionthat is excluded from the jurisdiction

of the Pensions Ombudsman by regu-lations made by the Minister underthis subsection; or

(c) if and to the extent that the complaint ordispute, or any matter arising in con-5nection with the complaint or dispute,is of a description that is excludedfrom the jurisdiction of the PensionsOmbudsman by regulations made bythe Minister under this subsection.10

(8) Where a question arises as to whether thePensions Ombudsman has jurisdiction under thisPart to investigate a complaint or dispute, suchquestion shall be determined by the PensionsOmbudsman, whose decision shall be final.15

(9) The Pensions Ombudsman shall have suchpowers as are necessary for or incidental to theperformance of his functions.

(10) The Pensions Ombudsman may performany of his functions, other than the powers con-20ferred on the Pensions Ombudsman by section139, through any member of his staff duly author-ised by the Pensions Ombudsman in that behalf.

Procedures for 132.—(1) The Minister, with the consent of theinternal resolution Minister for Finance, may by regulations25 of disputes.

require—

(a) the trustees of a scheme, and

(b) a PRSA provider,

to establish procedures for dealing with com-plaints made by, and resolving disputes arising30between, prescribed persons in relation to pre-scribed matters concerning the scheme or aPRSA provided by such a provider, as the casemay be.

(2) Without prejudice to the generality of sub-35section (1), regulations under this section may—

(a) require procedures as aforesaid to com-prise specified steps (including, as theMinister considers appropriate, themaking of an application for a deter-40mination to be made in relation to thecomplaint or dispute, the conductingof a hearing in relation to the matterconcerned and the making of a deter-mination in relation to the matter),45

(b) require one or more of the said steps tobe taken or completed within a speci-fied period,

(c) require the provision of information inrelation to the existence of those pro-50cedures and how they may be availedof, and

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(d) prescribe such other requirements as theMinister considers necessary orexpedient for the purpose of enablingcomplaints or disputes referred to insubsection (1) to be dealt with or 5resolved.

(3) Without prejudice to section 5(2), regu-lations under subsection (1) may, as respectsschemes, specify different requirements by refer-ence to the class of scheme concerned (being a 10class defined in the regulations by reference tothe number of members of the scheme or suchother matters as the Minister considersappropriate).

(4) A determination made pursuant to pro- 15cedures prescribed under this section shall not bebinding on any person unless, upon or after themaking of the determination, he assents, in writ-ing, to be bound by it.

Consultants and 133.—Subject to the prior approval of the 20advisers. Minister, the Pensions Ombudsman may from

time to time engage such consultants or advisersas he may consider necessary for the performanceof his function, other than the powers conferredon the Pensions Ombudsman by section 139, and 25any fees due to a consultant or adviser engagedunder this section shall be paid by the PensionsOmbudsman out of moneys at his disposal.

Exchange of 134.—Notwithstanding anything contained ininformation. any enactment, information held by the Pensions 30

Ombudsman for the purposes of this Part may betransferred by the Pensions Ombudsman to theBoard and information held by the Board for thepurposes of this Act may be transferred by theBoard to the Pensions Ombudsman. 35

Death or disability 135.—(1) Where an actual or potential ben-of actual or eficiary dies or is a minor or is otherwise unablepotential

to act for himself, then—beneficiary.

(a) any complaint or dispute (whenever aris-ing but subject to subsections (4) and 40(5) of section 131) which the actual orpotential beneficiary might otherwisehave made or referred under this Partmay be made or referred by theappropriate person, and 45

(b) anything in the process of being done byor in relation to the actual or potentialbeneficiary under or by virtue of thisPart may be continued by or inrelation to the appropriate person, 50

and any reference in this Part, except this section,to an actual or potential beneficiary shall be con-strued as including a reference to the appropriateperson.

(2) For the purposes of subsection (1) ‘theappropriate person’ means—

(a) where the actual or potential beneficiaryhas died, his personal representative;or5

(b) in any other case, a member of his fam-ily, or some other person who is con-sidered by the Pensions Ombudsmanto be a suitable person to representhim.10

Staying court 136.—Where—proceedings wherea complaint is madeor a dispute (a) a complaint has been made or a disputereferred. referred to the Pensions Ombudsman;

and

(b) any party to the complaint or reference15subsequently commences proceedingsin any court against any other party tothe complaint or reference in respectof any of the matters which are thesubject of the complaint or dispute,20

then, any party to the proceedings may at anytime after an appearance has been entered, andbefore delivering any pleadings or taking anyother steps in the proceedings, apply to the courtto stay the proceedings and the court, if it is satis-25fied that—

(i) there is no sufficient reason why the mat-ter in respect of which the said pro-ceedings have been commencedshould not be investigated by the Pen-30sions Ombudsman; and

(ii) the applicant was at the time when theproceedings were commenced andstill remains ready and willing to doall things necessary for the proper35conduct of the investigation,

shall make an order staying the proceedings.

Powers of Pensions 137.—(1) The Pensions Ombudsman may, forOmbudsman the purposes of an investigation by him under thisin respect of

Part, require any person who, in the opinion of40 investigations.the Pensions Ombudsman, is in possession ofinformation, or has a document or thing in hispower or control, that is relevant to the investi-gation to furnish that information, document orthing to the Pensions Ombudsman and, where45appropriate, may require the person to attendbefore him for that purpose and the person shallcomply with such a requirement.

(2) The Pensions Ombudsman shall, for thepurposes of an investigation by him under this50Part, have all the powers, rights and privilegesvested in the High Court or a judge thereof on

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the hearing of an action in respect of the examin-ation of witnesses (including the administrationof oaths and affirmations and the examination ofwitnesses abroad).

(3) Subject to the provisions of this Part, a per- 5son to whom a requirement is addressed underthis section shall be entitled to the same immunit-ies and privileges as if he were a witness beforethe High Court.

(4) A person shall not by act or omission 10obstruct or hinder the Pensions Ombudsman inthe performance of his functions or do any otherthing which would, if the Ombudsman were acourt having power to commit for contempt ofcourt, be contempt of such court. 15

(5) If it appears to the Pensions Ombudsmanthat a person has failed to comply with a require-ment made of him pursuant to the exercise by theOmbudsman of his powers under subsection (1)or (2), the Pensions Ombudsman may apply to 20the Circuit Court for an order under subsection(6).

(6) Subject to subsection (7), if, on an appli-cation under subsection (5), the Circuit Court issatisfied as to the failure of the person concerned 25to comply with the requirement in question, theCircuit Court may make an order requiring thatperson to comply with the requirement.

(7) If, on an application under subsection (5),the Circuit Court is of opinion that the require- 30ment in question purports to require the personconcerned—

(a) to produce any documents or thing, or

(b) to furnish information,

for which that person is entitled to claim legal 35professional privilege, the Circuit Court shall setaside the requirement.

(8) The Pensions Ombudsman may, if he thinksfit, pay to the person affected by an action inrespect of which an investigation is held by the 40Pensions Ombudsman under this Part and to anyother person who attends or furnishes infor-mation for the purposes of the investigation—

(a) sums in respect of travelling and subsist-ence expenses properly incurred by 45them, and

(b) allowances by way of compensation forloss of their time,

of such amount as may be prescribed by the Mini-ster, after consultation with the Minister for 50Finance.

(9) A statement or admission made by a personin an investigation under this Part by the PensionsOmbudsman shall not be admissible as evidenceagainst that person in any criminal proceedings.

(10) The Pensions Ombudsman may, of his5own volition or at the request of a party to a com-plaint or reference, state a case to the High Courton a point of law.

Conduct of 138.—(1) The Minister may, with the consentinvestigations.

of the Minister for Finance, make regulations10with respect to the procedure that is to beadopted in connection with the making of com-plaints, the reference of disputes, and the conductof investigations under this Part.

(2) Subject to the provisions of this Part and15regulations thereunder, the procedure for themaking of complaints, the reference of disputes,and the conduct of investigations under this Partshall be such as the Pensions Ombudsman con-siders appropriate in all the circumstances of the20case, and he may, in particular, obtain infor-mation from such persons and in such manner,and make such enquiries, as he thinks fit.

(3) Where the Pensions Ombudsman proposesto conduct an investigation into a complaint made25or dispute referred under this Part, he shallgive—

(a) any person (other than the person bywhom or on whose behalf the com-plaint or reference was made) respon-30sible for the management of thescheme or PRSA to which the com-plaint or reference relates,

(b) any other person against whom alle-gations are made in the complaint or35reference, and

(c) any other person whose interests, in theopinion of the Ombudsman, might beadversely affected by any eventualdetermination he makes in relation to40the complaint or dispute,

an opportunity to comment on any allegationscontained in the complaint or reference.

Determinations of 139.—(1) On the investigation of a complaintPensions

or reference under this Part, the Pensions45 Ombudsman.Ombudsman shall make a determination inrelation to the complaint or dispute, and may inthe determination give to the parties concernedsuch directions as the Pensions Ombudsman con-siders necessary or expedient for the satisfaction50of the complaint or the resolution of the dispute.

73

74

(2) A direction under subsection (1) shall notrequire either—

(a) an amendment of the rules of a schemeor the conditions of a PRSA contract,or 5

(b) the substitution of the decision of thePensions Ombudsman for that of thetrustees of a scheme in relation to theexercise by the trustees of a dis-cretionary power under the rules of 10the scheme.

(3) Subject to subsection (4), the PensionsOmbudsman may under subsection (1) ordersuch redress, including financial redress, for theparty concerned as he considers appropriate, hav- 15ing regard to all the circumstances and to the pro-visions of this Part, and specifies.

(4) Any financial redress under subsection (3)shall be of such amount as the Pensions Ombuds-man deems just and equitable having regard to 20all the circumstances but shall not exceed anyactual loss of benefit under the scheme or PRSA.

(5) The determination of the PensionsOmbudsman shall be in writing and shall be com-municated to the parties by the Pensions 25Ombudsman.

(6) If the Pensions Ombudsman considers itappropriate to do so in any particular case, hemay publish, in such form and manner as hethinks fit, a report in relation to any investigation 30under this Part and of the result of that inves-tigation.

(7) For the purpose of the law of defamation,the publication by the Pensions Ombudsman ofany report under subsection (6) shall be absol- 35utely privileged.

Appeal to High 140.—(1) A party to an investigation beforeCourt from the Pensions Ombudsman under this Part maydeterminations of

appeal to the High Court from a determinationPensionsOmbudsman. of the Pensions Ombudsman within 21 days from 40

the date of the determination.

(2) The High Court, on the hearing of anappeal under this section, may, as it thinks fit,annul the determination concerned, confirm thedetermination or confirm the determination sub- 45ject to such modifications as it considersappropriate.

Enforcement of 141.—(1) (a) If a party fails or refuses to com-determinations of ply with a determination of thePensions

Pensions Ombudsman under this 50Ombudsman.Part (‘a determination’), the Cir-cuit Court shall, on application toit in that behalf by—

(i) the other party concerned,or

(ii) the Minister, if he is ofopinion that it is appropri-ate to do so having regard5to all the circumstances,

make an order directing thatparty to carry out the determi-nation in accordance with itsterms.10

(b) In paragraph (a), the reference toa determination is a reference tosuch a determination in relationto which, at the expiration of thetime for bringing an appeal15against it, no such appeal hasbeen brought or, if such anappeal has been brought, it hasbeen abandoned.

(2) Notwithstanding subsection (1), where, in20proceedings under that subsection, the CircuitCourt is satisfied that, owing to lapse of time, itwould not be possible to comply with an orderunder that subsection, that Court shall make anorder providing for such redress as it considers25appropriate having regard to the provisions ofthis Part and all the circumstances.

(3) In an order under this section providing forthe payment of financial redress by any person,the Circuit Court may, if in all the circumstances30it considers it appropriate to do so, direct the per-son concerned to pay to the actual or potentialbeneficiary concerned interest on the payment atthe rate referred to in section 22 of the CourtsAct, 1981, in respect of the whole or any part of35the period beginning 4 weeks after the date onwhich the determination concerned is communi-cated to the parties and ending on the date of theorder.

(4) An application under this section to the Cir-40cuit Court shall be made to the judge of the Cir-cuit Court for the circuit in which the relevantmember or, as appropriate, contributor ordinarilyresides.

Notices. 142.—Subsections (2), (3) and (4) of section 9145shall apply with respect to the mode in which anotice, direction or other document under thisPart or regulations thereunder may be addressedto a person and served on or given to him in thesame manner as they apply with respect to the50mode in which those things may be done inrelation to a notice, direction or other documentunder Part X or regulations thereunder.

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76

Accounts and audits 143.—(1) The Pensions Ombudsman shallof Pensions keep in such form as may be approved of by theOmbudsman.

Minister with the concurrence of the Minister forFinance all proper and usual accounts of allmoneys received or expended by the Pensions 5Ombudsman, including an income and expendi-ture account and balance sheet and, in particular,shall keep all such special accounts as the Mini-ster may from time to time direct.

(2) Accounts kept in pursuance of this section 10shall be submitted, not later than such day afterthe end of the financial year of the PensionsOmbudsman to which they relate as the Ministermay specify, to the Comptroller and AuditorGeneral for audit and a copy of the income and 15expenditure account and of the balance sheet andof such other (if any) of its accounts as the Mini-ster may direct and a copy of the Comptroller andAuditor General’s report on the accounts shall bepresented to the Minister as soon as may be after 20the completion of the said audit and the Ministershall cause copies of each of the documents afore-said to be laid before each House of theOireachtas.

Reports and 144.—(1) The Pensions Ombudsman shall fur- 25information to nish to the Minister such information regardingMinister.

his income and expenditure as he may from timeto time require.

(2) As soon as may be after the end of eachfinancial year of the Pensions Ombudsman, but 30not later than 6 months thereafter, the PensionsOmbudsman shall make a report to the Ministerof his activities during that year and the Ministershall cause copies of the report to be laid beforeeach House of the Oireachtas. 35

(3) (a) Before the expiry of 12 months fromthe establishment day, the PensionsOmbudsman shall, with respect to hisactivities in the period referred to inparagraph (b), adopt a statement of 40strategy (which shall include a planwith respect to the manner in whichhe proposes to carry on thoseactivities) and submit the statement tothe Minister. 45

(b) The period mentioned in paragraph (a)is the period ending on the day onwhich the statement of strategy undersubsection (4)(a) is submitted to theMinister. 50

(4) (a) Before the—

(i) expiry of 3 years from the sub-mission to the Minister of thestatement of strategy referred toin subsection (3), and 55

(ii) the expiry of each successive per-iod of 3 years thereafter,

the Pensions Ombudsman shall, withrespect to his activities in the periodreferred to in paragraph (b), adopt a5statement of strategy (which shallinclude a plan with respect to themanner in which he proposes to carryon those activities) and submit thestatement to the Minister.10

(b) The period mentioned in paragraph (a)is the period ending on the day onwhich the next subsequent statementof strategy under this subsection issubmitted to the Minister.15

(5) (a) The Pensions Ombudsman shall pub-lish, as soon as practicable after itsadoption, each statement of strategyunder subsections (3) and (4).

(b) As soon as practicable after the receipt20by him of a statement of strategyunder subsection (3) or (4), the Mini-ster shall cause copies of it to be laidbefore each House of the Oireachtas.

(6) Each report under subsection (2) and each25statement of strategy under subsections (3) and(4) shall include information in such form andregarding such matters as the Minister may direct.

(7) The Pensions Ombudsman shall, wheneverso requested by the Minister, furnish to him infor-30mation in relation to such matters as he may spec-ify concerning or relating to the scope of hisactivities generally, or in respect of any accountprepared by the Pensions Ombudsman or activi-ties, other than day to day activities, of the Pen-35sions Ombudsman.

Disclosure of 145.—(1) A person shall not, without the con-Information. sent of the Pensions Ombudsman, disclose any

information obtained by him while performing(or as a result of having performed) duties as a40member of the staff of, or an adviser or consult-ant to, the Pensions Ombudsman.

(2) Nothing in subsection (1) shall prevent thedisclosure of information in a report made to thePensions Ombudsman or by or on behalf of the45Pensions Ombudsman to the Minister or by or onbehalf of the Pensions Ombudsman under section139(6).

Staff of Pensions 146.—(1) (a) There shall be employed in theOmbudsman. office of the Pensions Ombuds-50

man so many officers and ser-vants as the Minister, with theconsent of the Minister for Fin-ance, shall from time to timedetermine.55

77

Amendment ofsection 2(1) ofPrincipal Act.

78

(b) The power of appointing a personto be an officer or servant of thePensions Ombudsman shall bevested in the Minister.

(2) Members of staff of the Pensions Ombuds- 5man shall be civil servants in the Civil Service ofthe State.

(3) The Minister may delegate to the PensionsOmbudsman the powers exercisable by himunder the Civil Service Commissioners Act, 1956, 10and the Civil Service Regulation Acts, 1956 and1958, as the appropriate authority in relation tomembers of the staff of the office of the PensionsOmbudsman and, if he does so, then so long asthe delegation remains in force— 15

(a) those powers shall, in lieu of being exer-cisable by the Minister, be exercisableby the Pensions Ombudsman, and

(b) the Pensions Ombudsman shall, in lieuof the Minister, be for the purposes of 20this Act the appropriate authority inrelation to members of the staff of theoffice of the Pensions Ombudsman.

Expenses of 147.—The expenses incurred by the PensionsPensions

Ombudsman in the administration of this Part 25Ombudsman.shall, to such extent as may be sanctioned by theMinister for Finance, be paid out of moneys pro-vided by the Oireachtas.’’.

PART 4

Amendments of Existing Provisions of Principal Act 30

Chapter 1

Amendments to Part I of Principal Act

6.—Section 2(1) of the Principal Act is amended—

(a) by the substitution of the following definition for the defini-tion of ‘‘auditor’’: 35

‘‘ ‘auditor’, in relation to a scheme or the business of aPRSA provider, means a person appointed in pursuanceof this Act to act as auditor, for the purpose of this Act,of the scheme or the business of a PRSA provider, as thecase may be;’’, 40

(b) by the insertion after the definition of ‘‘the chief executive’’of the following definition:

‘‘ ‘contract of employment’ means—

(a) a contract of service or apprenticeship, and

(b) any other contract whereby an individual agreeswith another person, who is carrying on thebusiness of an employment agency within themeaning of the Employment Agency Act,1971, and is acting in the course of that busi-5ness, to do or perform personally any work orservices for a third person (whether or not thethird person is party to the contract),

whether the contract is expressed or implied or if express,whether it is oral or in writing;’’,10

(c) by the insertion after the definition of ‘‘early RetirementRule’’ of the following definitions:

‘‘ ‘employee’ means a person of any age who has enteredinto or works under (or, where the employment hasceased, entered into or worked under) a contract of15employment and references, in relation to an employer,to an employee shall be construed as references to anemployee employed by that employer; and for the pur-poses of this Act, a person holding office under, or in theservice of, the State (including a civil servant, within the20meaning of the Civil Service Regulation Act, 1956) shallbe deemed to be an employee employed by the State orGovernment, as the case may be, and an officer or servantof a local authority for the purposes of the Local Govern-ment Act, 1941, or of a harbour authority, a health board25or a vocational education committee shall be deemed tobe an employee employed by the authority, board or com-mittee, as the case may be;

‘employer’ in relation to an employee, means (except insection 49 and in Part VII) the person with whom the30employee has entered into or for whom the employeeworks under (or, where the employment has ceased,entered into or worked under) a contract of employmentsubject to the qualification that the person who under acontract of employment referred to in paragraph (b) of35the definition of ‘contract of employment’ is liable to paythe wages of the individual concerned in respect of thework or service concerned shall be deemed to be the indi-vidual’s employer;’’,

(d) by the insertion after the definition of ‘‘prospective mem-40ber’’ of the following definitions:

‘‘ ‘PRSA’ has the meaning assigned to it by section 91;

‘PRSA provider’ has the meaning assigned to it by section91;’’,

(e) by the insertion after the definition of ‘‘member’’ of the fol-45lowing definition:

‘‘ ‘Member State’ means a Member State of the Euro-pean Communities;’’.

(f) by the insertion after the definition of ‘‘the Minister’’ of thefollowing definition:50

‘‘ ‘multi-employer scheme’ means a scheme which appliesto persons employed by more than one employer;’’,

and

79


80

(g) by the insertion after the definition of ‘‘scheme’’ of the fol-lowing definitions:

‘‘ ‘section’, in relation to a sectionalised scheme, means—

(a) one of the distinct classes referred to in thedefinition of the latter expression into which 5the persons to whom the scheme applies aredivided, or

(b) one of the distinct parts of the resources of thescheme referred to in the said definition whichis to be applied in the manner referred to in 10the said definition,

or both, as the case may require;

‘sectionalised scheme’ means a multi-employer schemeunder the rules of which—

(a) the persons to whom the scheme applies are div- 15ided into distinct classes, and

(b) with respect to each such class, save in accord-ance with such conditions as may be pre-scribed, a distinct part of the resources of thescheme— 20

(i) is required to be applied in the provisionof benefits for and in respect of the per-sons in that class, and

(ii) cannot be applied in the provision of bene-fits for and in respect of the persons in 25any other class, other than a class with nomembers in reckonable service.’’.


(a) by the substitution for paragraphs (a), (b) and (bb) of thefollowing paragraphs: 30

‘‘(a) Where—

(i) a trustee in his capacity as trustee,

(ii) an employer,

(iii) a PRSA provider,

(iv) an actuary or auditor of a scheme or a PRSA in 35his capacity as such actuary or auditor,

(v) a person who is required under regulationsmade under section 5A to carry out any of theduties imposed upon trustees by this Act or byany regulations thereunder, in his capacity as 40such a person, or

(vi) any other person,

contravenes a provision of this Act or a regulationthereunder, he shall be guilty of an offence.

(b) Where a person of whom a requirement is made bythe Pensions Ombudsman under subsection (1) or(2) of section 137 fails to comply with that require-ment, he shall be guilty of an offence.’’;

and5

(b) by the substitution in paragraph (c) for ‘‘(a), (b) or (bb)’’ of‘‘(a)’’.

8.—(1) The following subsection is substituted for subsection (5)of section 3 of the Principal Act:

‘‘(5) Proceedings for a summary offence—10

(a) under any provision of this Act (other than subsection(1)(b)) may be brought and prosecuted by the Board,

(b) under subsection (1)(b) may be brought and prosecuted bythe Pensions Ombudsman.’’.

(2) Subsection (6) of section 3 of the Principal Act is amended—15

(a) by the substitution for ‘‘Board’’ of ‘‘Board or PensionsOmbudsman, as the case my be,’’, and

(b) by the substitution for ‘‘Board’s’’ of ‘‘Board’s or PensionsOmbudsman’s’’.

9.—The following section is substituted for section 4 of the Princi-20pal Act:

‘‘Exchange of 4.—(1) Notwithstanding anything contained inInformation.

any enactment, information held by the Board forthe purposes of this Act may be transferred bythe Board to the Revenue Commissioners and25information held by the Revenue Commissionersfor the purposes of Chapter 1 of Part 30 of theTaxes Consolidation Act, 1997, relating to occu-pational pension schemes and Personal Retire-ment Savings Accounts may be transferred by the30Revenue Commissioners to the Board.

(2) The Board and every other supervisoryauthority established in the State may exchangeamong themselves all information which is neces-sary to enable the Board and each such authority35to perform effectively their respective functionsof a supervisory nature.

(3) The Board may disclose information relat-ing to occupational pension schemes and Per-sonal Retirement Savings Accounts to a supervis-40ory authority established outside the State for thepurpose of enabling or assisting the performanceby that authority of functions corresponding tothose of the Board under this Act.’’.

10.—Section 5 of the Principal Act is amended—45

(a) by the insertion after subsection (3) of the following sub-sections:

81

Further amendmentof section 3 ofPrincipal Act.

Amendment ofsection 4 ofPrincipal Act.


Amendment ofsection 5B ofPrincipal Act.

Provision in relationto professionalguidance issued bySociety of Actuariesin Ireland.

82

‘‘(3A) Without prejudice to any specific provision ofthis Act, any regulations may provide—

(a) for any of the provisions of this Act, or any ofthose regulations, to apply to the differentsections of a sectionalised scheme as though 5each section were a separate scheme for anyor all of the purposes of this Act, and

(b) if provision as aforesaid is made in relation toa provision of this Act, that the provision soapplied shall have effect subject to specified 10modifications, being modifications the makingof which the Minister considers necessary orexpedient in consequence of the applicationof the provision in that manner and which, inevery case, conform to the purposes, prin- 15ciples and spirit of this Act.

(3B) For the avoidance of doubt, regulations referredto in subsection (3A) may provide for any or all of theprovisions of this Act or any or all of those regulations,to apply both to the different sections of the scheme con- 20cerned as though each were a separate scheme and to thescheme as a whole.’’.

and

(b) by the insertion after subsection (4) of the following subsec-tion: 25

‘‘The Minister may, after consultation with the Ministerfor Enterprise, Trade and Employment and with the con-sent of the Minister for Finance, make regulationsprescribing any matter or thing in relation to a scheme orPRSA for the purpose of enabling any provision of the 30Protection of Employees (Part-Time Work) Act, 2001 tohave full effect.’’.

11.—Section 5B of the Principal Act is amended by the insertionafter ‘‘certain categories of external schemes’’ of ‘‘or any schemeprovided under the Agreement between the Government of Ireland 35and Government of the United Kingdom of Great Britain andNorthern Ireland establishing Implementation Bodies done atDublin on the 8th day of March 1999’’.

12.—The following section is inserted after section 7 of the Princi-pal Act: 40

‘‘Professional 7A.—So long as any professional guidanceGuidance of the

issued by the Society of Actuaries in Ireland isSociety of Actuariesin Ireland. for the time being specified by regulations made

under this Act for any purpose of this Act, thesaid Society shall not alter or withdraw such pro- 45fessional guidance without the prior consent ofthe Minister.’’.

Chapter 2

Amendments to Part II of Principal Act


(a) by the substitution for paragraph (a) of the followingparagraph:5

‘‘(a) to monitor and supervise the operation of this Actand pension developments generally, including theactivities of PRSA providers as such providers, theprovision of PRSA products and the operation ofPersonal Retirement Savings Accounts;’’,10

(b) by the substitution for paragraph (c) of the followingparagraph:

‘‘(c) to—

(i) issue guidelines or guidance notes on the dutiesand responsibilities of trustees of schemes and15codes of practice on specific aspects of theirresponsibilities; and

(ii) issue guidelines or guidance notes on the dutiesand responsibilities of PRSA providers inrelation to PRSA products and with respect to20such products;’’,

and

(c) by the substitution for paragraph (e) of the followingparagraph:

‘‘(e) to advise the Minister on all matters arising in25relation to this Act and, in particular, on standardsfor trustees of schemes and on their imple-mentation;’’.

14.—Section 18 of the Principal Act is amended—

(a) by the insertion after ‘‘a scheme’’ in subsection (1) of ‘‘or30the state of a PRSA product’’;

(b) by the insertion after ‘‘a scheme’’ in subsection (3A) of ‘‘ora PRSA product’’;

(c) by the insertion after ‘‘a scheme’’ in subsections (6) and (7)of ‘‘or a PRSA provider’’;35

(d) by the insertion after ‘‘the scheme’’ in subsection (3A)(c) of‘‘or the PRSA product’’;

(e) by the insertion after ‘‘the scheme’’ in subsections (3A)(d)and (5)(c) of ‘‘or the activities of the PRSA provider assuch a provider’’;40

(f) by the insertion after ‘‘the scheme’’ in subsection (6) and(7) of ‘‘or the PRSA provider’’;

83



Amendment of PartIII (title thereof) ofPrincipal Act.


84

(g) by the substitution for subsection (2) of the followingsubsection:

‘‘(2) The Board or an authorised officer may inrelation to—

(a) a scheme, require the employer concerned or the 5trustees of the scheme,

(b) a PRSA provider, require the officers andemployees of the PRSA provider in respectof its PRSA activities, and

(c) an employer, require him in relation to his obli- 10gations under section 121,

to furnish it within such reasonable period as may bespecified with such information and explanations andsuch books of account and other documents in relationto the scheme or, as the case may be, PRSA products 15provided by the PRSA provider as may be specified.’’;

(h) by the insertion after ‘‘trustee’’ in subsection (3A)(a) of‘‘, PRSA provider’’; and

(i) by the insertion after ‘‘the employer’’ in subsection (4) of‘‘or the PRSA provider in relation to its activities as such 20a provider’’; and

(j) by the insertion after ‘‘the employer’’ in subsection (5) of‘‘or the PRSA provider’’.

Chapter 3

Amendments to Part III of Principal Act 25

15.—Part III of the Principal Act is amended by the substitutionfor the title to that Part of the following title:

‘‘PART III

Preservation of Benefits and Minimum Value of Contribu-tory Retirement Benefits’’. 30

16.—Section 27(1) of the Principal Act is amended by the insertionof the following definitions:

‘‘ ‘contributory retirement benefit’ means a member’s ordinaryretirement benefit multiplied by the member’s reckonable serviceduring which, under the rules of the scheme, he was required to 35pay contributions to the scheme and divided by the member’s totalreckonable service;

‘contributory scheme’ means a defined benefit scheme under therules of which members are, or have been, required to pay contri-butions to the scheme; 40

‘minimum contributory retirement benefit’ means a contributoryretirement benefit of at least the minimum value required undersection 35A;

‘ordinary retirement benefit’ means long service benefit, excludingany such benefit which is secured by way of additional voluntarycontributions or which represents a transfer of accrued rights fromanother scheme;’’.


(a) by the substitution in subsection (1) for ‘‘the commence-ment of this Part’’ of ‘‘1 January 1991’’, and

(b) by the substitution for subsection (2) of the followingsubsection—

‘‘(2) A member of a scheme whose service in relevant10employment terminates otherwise than on death beforenormal pensionable age shall be entitled to a benefit (inthis Act referred to as a ‘preserved benefit’) if—

(a) his service in relevant employment so terminatesafter 1 January 1991 but on or before 1 June152002, and he has completed at least five years’qualifying service of which at least two suchyears fall after 1 January 1991, or

(b) his service in relevant employment so terminatesafter 1 June 2002, and he has completed at20least two years’ qualifying service which fallafter 1 January 1991.’’.


(a) by the insertion in paragraph (a) of subsection (5) after‘‘paragraph 1’’ of ‘‘and, where appropriate, paragraph 4’’;25

(b) by the substitution in paragraph (b) of subsection (5) for‘‘paragraph 1’’ of ‘‘paragraphs 1 and 4’’;

(c) by the deletion in subsection (6) of ‘‘and shall be provided inaddition to the preserved benefit under subsection (2)’’;

(d) by the substitution in the proviso to subsection (6) for ‘‘the30commencement of this Part’’, in each place where thosewords occur, of ‘‘1 January 1991’’;

(e) by the substitution in subsection (7)—

(i) for ‘‘another scheme’’ of ‘‘another occupational pen-sion scheme’’;35

(ii) for ‘‘that scheme’’ of ‘‘that occupational pensionscheme’’; and

(iii) for ‘‘in addition to’’ of ‘‘as part of’’;

and

(f) by the substitution in the proviso to subsection (7)—40

(i) for ‘‘other scheme’’, in each place where those wordsoccur, of ‘‘other occupational pension scheme’’; and

85





86

(ii) for ‘‘the commencement of this Part’’, in each placewhere those words occur, of ‘‘1 January 1991’’.


(a) by the substitution for subsection (4) of the followingsubsection: 5

‘‘(4) Subject to subsections (5) and (6), the appropriatecontributions shall be the contributions paid by or inrespect of the member concerned for the purposes of longservice benefit from—

(a) in the case of a member who is entitled to a pre- 10served benefit under section 28(2)(a), 1 Janu-ary 1991 or, if later, the date of the com-mencement of the relevant employment,

(b) in the case of a member who is entitled to a pre-served benefit under section 28(2)(b), the 15date of the commencement of the relevantemployment,

but excluding additional voluntary contributions and anypayment representing a transfer of accrued rights fromanother scheme.’’; 20

(b) by the substitution in the proviso to subsection (5) for ‘‘thecommencement of this Part’’, in each place where thosewords occur, of ‘‘1 January 1991’’;

(c) by the substitution in subsection (6)—

(i) for ‘‘another scheme’’ of ‘‘another occupational pen- 25sion scheme’’; and

(ii) for ‘‘that scheme’’ of ‘‘that occupational pensionscheme’’;

and

(d) by the substitution in the proviso to subsection (6)— 30

(i) for ‘‘that scheme’’ of ‘‘that occupational pensionscheme’’;

(ii) for ‘‘the commencement of this Part’’ of ‘‘1 January1991’’; and

(iii) for ‘‘such commencement’’ of ‘‘that date’’. 35


(a) in subsection (1)—

(i) by the substitution for ‘‘in accordance with the pro-visions of this Part’’ of ‘‘in accordance with section28(2)(a)’’; and 40

(ii) by the substitution for ‘‘the commencement of thisPart’’ of ‘‘1 January 1991’’;

(b) by the substitution for subsection (2) of the followingsubsection:

‘‘(2) A member of a scheme who is entitled to pre-served benefit under the scheme in accordance withsection 28(2)(b) shall not be entitled to receive a refund5of any contributions paid to that scheme.’’;

and

(c) the insertion of the following subsection after subsection (2):

‘‘(3) A member of a scheme who would be entitled topreserved benefit under the scheme in accordance with10the provisions of this Part if his service in relevantemployment were to terminate shall not be entitled toreceive a refund of any contributions paid to thatscheme.’’.


(a) by the substitution for subsection (1) of the followingsubsection:

‘‘(1) In this section and Part B of the Second Schedule‘revaluation year’ means a year beginning on or after 1January 1996.’’.20

and

(b) in subsection (2) by the substitution for ‘‘paragraph 1 or 3or both’’ of ‘‘any or all of paragraphs 2, 3 and 4’’.


(a) by the substitution for subsection (2) of the following:25

‘‘(2) A member of a scheme to whom this sectionapplies shall be entitled to the transfer of an amount ofmoney from the scheme (in this Part referred to as a‘transfer payment’) in accordance with subsection (3)equal—30

(a) in the case of a defined benefit scheme, to theactuarial value of the preserved benefit, andof any amount payable under section 29(4),on the date on which the relevant applicationunder subsection (3) is received by the trus-35tees or on a date selected by the trusteeswhich 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, to40the accumulated value of the appropriate con-tributions under the scheme in respect of themember, such value to be determined on adate not later than three months following thedate of the receipt of the application,45

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and in each case regulations may prescribe that the trans-fer payment is to be calculated in accordance with anyapplicable professional guidance issued by the Society ofActuaries in Ireland and specified in the regulations orwith any applicable guidance issued by any other person 5(including the Minister) and specified in the regulations:

Provided that—

(i) in the case of a member who is entitled to a pre-served benefit under section 28(2)(b), the partof the transfer payment which represents the 10actuarial value of benefits specified in section44(a)(v) may be reduced by multiplying it bythe specified percentage shown in the mostrecent actuarial funding certificate in respectof that scheme, and 15

(ii) in the case of a relevant scheme, if there is con-tained in the most recent actuarial fundingcertificate provided under section 42 inrespect of the scheme a statement to theeffect that the scheme does not satisfy the 20funding standard, the transfer payment maybe reduced by the trustees on the advice ofthe actuary, having regard to the provisions ofsection 48.’’;

(b) in subsection (3)— 25

(i) in paragraph (b) by the substitution for ‘‘for the pur-poses of this Act.’’ of ‘‘for the purposes of this Act,or’’; and

(ii) by the insertion of the following paragraphs afterparagraph (b): 30

‘‘(c) in the making of a payment to another schemewhich is not a funded scheme, which providesor is capable of providing long service benefit,of which he is a member or a prospective mem-ber and the trustees of which are willing to 35accept payments made under this paragraph,or

(d) where so prescribed, and in accordance withsuch conditions as may be prescribed, in themaking of a payment to the trustees, custod- 40ians, managers or administrators of anarrangement for the provision of retirementbenefits established within the State, not beingan arrangement of the kind mentioned in para-graph (a), (b) or (c), or 45

(e) where so prescribed, and in accordance withsuch conditions as may be prescribed, in themaking of a payment to the trustees, custod-ians, managers or administrators of anarrangement for the provision of retirement 50benefits established outside the State.’’;

and

(c) by the insertion in subsection (6) after ‘‘subsection (3)(a)’’of ‘‘or (c)’’.

23.—The following section is inserted after section 35 of the Princi-pal Act:

‘‘Minimum Value of 35A.—(1) Where the service in relevant5Contributory

employment of a member of a contributoryRetirement Benefit.scheme terminates after 1 June 2002—

(a) at or after normal pensionable age, or

(b) within five years before normal pension-able age,10

and the member is entitled under the rules of thescheme to a contributory retirement benefit, theamount of the contributory retirement benefitshall, if necessary, be increased so that its actu-arial value is not less than the minimum value15calculated in accordance with Part C of theSecond Schedule.

(2) No part of the amount of any increase to acontributory retirement benefit to be made undersubsection (1) shall be provided by reducing the20amount of any other benefit payable under therules of the scheme concerned.

(3) Any increase in contributory retirementbenefit arising under subsection (1) shall be pay-able out of the resources of the scheme.25

(4) Except as provided for in this Part, a con-tributory retirement benefit increased under sub-section (1) shall be payable in accordance with,and subject to, the rules of the scheme, being therules as at the date of the termination of the rel-30evant employment.’’.



(i) by the insertion in paragraph (a) after ‘‘benefit’’ of‘‘or of a minimum contributory retirement benefit’’;35and

(ii) by the insertion in paragraph (b) after ‘‘benefit’’ of‘‘or a member’s minimum contributory retirementbenefit’’;

and40

(b) by the insertion in subsection (2) after ‘‘preserved benefit’’of ‘‘or a contributory retirement benefit’’.

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Contributoryretirement benefitfor persons leavingschemes after 1June 2002.




90


(a) by the insertion in subsection (4) after ‘‘preserved benefit’’of ‘‘and the minimum value of contributory retirementbenefit under section 35A’’; and

(b) by the insertion in subsection (4A) after ‘‘preserved bene- 5fit’’ of ‘‘and the minimum value of contributory retire-ment benefit under section 35A’’.

26.—The following section is substituted for section 39 of the Prin-cipal Act:

‘‘Schemes may 39.—(1) Nothing in the other provisions of this 10provide higher Part or in the Second Schedule shall be construedbenefits.

as precluding a scheme from providing benefits,in lieu of preserved benefit or minimum contribu-tory retirement benefit, on a higher scale, or pay-able at any earlier, or, at the request of the mem- 15ber of the scheme, at any later time or otherwisemore favourably than is provided for under thisPart:

Provided that—

(a) such benefits are of an actuarial value 20that is equivalent to or greater thanthat of preserved benefit,

(b) on the death of a member before anysuch benefit commences to be payablethe amount thereof shall not be less 25than the amount that would, but forthis section, have been payable by vir-tue of section 29(4) or 30(3), asappropriate,

(c) a member who is entitled to preserved 30benefit under this Part shall not beentitled to receive a refund of anycontributions paid to the scheme incontravention of section 32,

(d) such benefits shall be provided to the 35same extent to or in respect ofmembers whose service in relevantemployment terminates as a con-sequence of their moving to anotherMember State as to or in respect of 40members whose service in relevantemployment terminates for any otherreason.

(2) Where a scheme provides benefits to or inrespect of a member whose service in relevant 45employment terminates but who is not entitled toa preserved benefit under this Part, such benefitsshall, be provided to the same extent to or inrespect of members whose service in relevantemployment terminates as a consequence of their 50moving to another Member State as to or inrespect of members whose service in relevantemployment terminates for any other reason.’’.

Chapter 4

Amendments to Part IV of Principal Act

27.—Section 41 of the Principal Act is amended:

(a) by the substitution in paragraph (b) of subsection (1) of‘‘1993, or’’ for ‘‘1993.’’;5

(b) by the insertion after paragraph (b) of subsection (1) of thefollowing paragraph:

‘‘(c) to such extent as may be prescribed, a scheme thewinding up of which has commenced.’’; and

(c) by the substitution for subsection (2) of the following10subsection:

‘‘(2) Notwithstanding subsection (1)—

(a) subsections (1) and (2) of section 48 shall apply to anyscheme other than a defined contribution scheme, and

(b) subsections (3) and (4) of section 48 shall apply to every15scheme.’’.



(i) by the substitution for ‘‘the commencement of thisPart’’ of ‘‘1 June 2002’’; and20

(ii) by the insertion after ‘‘section 43’’ of ‘‘having aneffective date after 1 June 2002’’;

and

(b) by the substitution for subsection (4) of the followingsubsection:25

‘‘(4) Regulations under this section may—

(a) prescribe the form and content of an actuarialfunding certificate, and

(b) require the actuary, in completing an actuarialfunding certificate, to comply with the applic-30able professional guidance issued by theSociety of Actuaries in Ireland and specifiedin the regulations or with any other applicableguidance issued by any other person(including the Minister) and specified in the35regulations.’’.


(a) in subsection (1) by—

(i) the substitution for paragraph (a) of the followingparagraph:40

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‘‘(a) in the case of a relevant scheme which com-menced before 1 January 1991, not later than1 January 1994, and’’;

and

(ii) the substitution in paragraph (b) for ‘‘such com- 5mencement’’ of ‘‘1 January 1991’’;

(b) by the insertion in subsection (2) after ‘‘prescribed’’ of ‘‘andexcept in the case provided for in subsection (3)’’; and

(c) by the insertion after subsection (2) of the following—

‘‘(3) If an annual report prepared under subsection (1) 10of section 55—

(a) does not contain the statement by an actuaryrequired under subsection (3) or (4) of thatsection, as appropriate, or

(b) contains the statement by an actuary required 15under that subsection (3) but the actuary doesnot state therein that he is reasonably satisfiedthat, if he were to prepare under section 42 anactuarial funding certificate having an effec-tive date of the last day of the period to which 20the annual report relates, he would certify thatthe scheme satisfies the funding standard pro-vided for in section 44, or

(c) contains the statement by an actuary requiredunder that subsection (4) but the actuary does 25not state therein that he is reasonably satisfiedthat the scheme will satisfy the funding stan-dard at the effective date of the next actuarialfunding certificate,

then, in each case, the trustees of the scheme shall submit 30an actuarial funding certificate to the Board within twelvemonths of the last day of the period to which the annualreport relates and such a certificate shall have an effectivedate not earlier than the last day of the period to whichthe annual report relates.’’. 35

30.—Section 44 of the Principal Act is amended in paragraph (a)by the substitution for subparagraphs (i) to (iv) of the following sub-paragraphs:

‘‘(i) additional benefits secured or granted by way ofadditional voluntary contributions or a transfer of 40rights from another scheme to which paragraph 2 ofthe Third Schedule relates to the extent that the rightsto which the transfer relates were originally secured orgranted by way of additional voluntary contributions,

(ii) benefits in the course of payment to which paragraph 1 45of the Third Schedule relates,

(iii) benefits, other than those referred to in subparagraphs(i) and (ii), which consist of a transfer of rights from

another scheme to which paragraph 2 of the ThirdSchedule relates,

(iv) benefits, other than those referred to in subparagraphs(i), (ii) and (iii), to which paragraphs 3 and 4 of theThird Schedule relate, and5

(v) the percentage (in this Part referred to as the ‘specifiedpercentage’) of any benefits, other than those referredto in subparagraphs (i), (ii) and (iii), to which para-graph 5 of the Third Schedule relates.’’.

31.—The following section is substituted for section 45 of the Prin-10cipal Act:

‘‘Provisions relating 45.—(1) This section applies to relevantto schemes

schemes that came into operation before 1 Junecommencing before1 June 2002. 2002.

(2) The actuary shall determine the percentage,15if any, of the benefits under a scheme to whichparagraph 5 of the Third Schedule relates that,in his opinion, could have been provided at theeffective date of the first actuarial funding certifi-cate having an effective date after 1 June 2002 in20relation to the scheme from the resources of thescheme if—

(a) the scheme had been wound up on thatdate, and

(b) (i) the liabilities of the scheme for bene-25fits under the scheme specified insubparagraphs (i), (ii), (iii) and (iv)of paragraph (a) of section 44, and

(ii) the estimated expenses of adminis-tering a winding up,30

had already been discharged from resources ofthe scheme.

(3) The first actuarial funding certificate havingan effective date after 1 June 2002 in relation toa scheme shall state a percentage (in this Part35referred to as ‘the certified percentage’), beingthe lesser of—

(a) the percentage determined by the actu-ary pursuant to subsection (2), and

(b) 100 per cent.40

(4) For the purposes of this Part—

(a) where an actuarial funding certificaterelates to an effective date not laterthan 1 June 2002, the specified per-centage shall be 0 per cent,45

(b) where an actuarial funding certificaterelates to an effective date after 1

93




94

June 2002 but not later than 1 June2012, the specified percentage shall bethe certified percentage,

(c) where an actuarial funding certificaterelates to an effective date after 1 5June 2012 and on 1 June 2002 thescheme concerned was a fundedscheme, the specified percentage shallbe 100 per cent.’’.

32.—Section 46(1) of the Principal Act is amended in paragraph 10(b)—

(a) by the substitution in subparagraph (ii) for ‘‘Chapter II ofPart I of the Finance Act, 1972’’ of ‘‘Chapter 1 of Part 30of the Taxes Consolidation Act, 1997’’;

(b) by the substitution for ‘‘(i), (ii) and (iii)’’ of ‘‘(i), (ii), (iii) 15and (iv)’’; and

(c) by the substitution for ‘‘44(a)(iv)’’ of ‘‘44(a)(v)’’.

33.—The following section is substituted for section 48 of the Prin-cipal Act:

‘‘Priorities on 48.—(1) In applying the resources of a relevant 20winding up of

scheme which has been wound up after 1 Januaryrelevant scheme.1997, the trustees shall discharge the liabilities ofthe scheme for the following benefits in the fol-lowing order—

(a) where the scheme is wound up on or 25before 1 June 2002—

(i) firstly, the benefits specified inparagraph 1 of the Third Sched-ule to or in respect of those per-sons, who, at the date of the 30winding up, were within the cat-egories referred to in that para-graph, to the extent that they arenot already discharged, and

(ii) secondly, the benefits specified in 35paragraphs 2 and 3 of the ThirdSchedule to or in respect of thosemembers of the scheme who, atthe date of the winding up, werewithin the categories referred to 40in those paragraphs, to the extentthat they are not alreadydischarged,

before discharging the liabilities of thescheme for other benefits, and 45

(b) where the scheme is wound up after 1June 2002—

(i) firstly, all additional benefitssecured or granted by way ofadditional voluntary contri-butions or a transfer of rightsfrom another scheme to which5paragraph 2 of the Third Sched-ule relates to the extent that therights to which the transferrelates were originally secured orgranted by way of additional vol-10untary contributions,

(ii) secondly, the benefits specified inparagraph 1 of the Third Sched-ule to or in respect of those per-sons, who, at the date of the15winding up, were within the cat-egories referred to in that para-graph, to the extent that they arenot already discharged, and

(iii) thirdly, the benefits specified in20paragraphs 2, 3 and 4 of the ThirdSchedule to or in respect of thosemembers of the scheme who, atthe date of the winding up, werewithin the categories referred to25in those paragraphs, to the extentthat they are not alreadydischarged,

before discharging the liabilities of thescheme for other benefits.30

(2) If, after discharging the liabilities of ascheme to which subsection (1)(b) applies for thebenefits specified in that subsection and any otherbenefits arising under the rules of the scheme,any resources of the scheme remain, then, before35returning any part of the resources of the schemeto the employer, the trustees shall, to the extentthat they have not already done so, provide outof the resources of the scheme for revaluation ofthe benefits specified in paragraph 4 of the Third40Schedule, calculated in accordance with section33 as though these benefits were specified inparagraphs 2 and 3 of the Third Schedule.

(3) In applying the resources of a relevantscheme which has been wound up, the trustees45may discharge, notwithstanding anything con-tained in the rules of the scheme and without theconsent of the member concerned, the liability ofthe scheme for benefits payable to or in respectof any member by—50

(a) making a payment to another fundedscheme which provides or is capableof providing long service benefit andof which he is a member or a prospec-tive member, or55

95


Amendment of PartV (title thereof) ofPrincipal Act.


96

(b) the making of one or more paymentsunder policies or contracts of assur-ance that are effected on behalf of themember with one or more undertak-ings (within the meaning of the 5Insurance Act, 1989) and that areapproved by the Revenue Com-missioners under Chapter 1 of Part 30of the Taxes Consolidation Act, 1997,which policies or contracts of assur- 10ance shall not be deemed to be anoccupational pension scheme for thepurposes of this Act, or

(c) where so prescribed, and in accordancewith such conditions as may be pre- 15scribed, the making of a payment tothe trustees, custodians, managers oradministrators of an arrangement forthe provision of retirement benefitsestablished within the State, not being 20an arrangement of the kind men-tioned in paragraphs (a) or (b),

of an aggregate amount not less than theactuarial value of the benefits payable onthe winding up under the rules of the 25scheme, subject always to subsections (1)and (2).

(4) Nothing in this section requires liabilitiesfor benefits to be discharged before liabilities forexpenses, fees and costs associated with the wind- 30ing up of the scheme.’’.

34.—Section 49(4) of the Principal Act is amended by the substi-tution for ‘‘Chapter II of Part I of the Finance Act, 1972’’ of ‘‘Chap-ter 1 of Part 30 of the Taxes Consolidation Act, 1997’’.

Chapter 5 35

Amendments to Part V of Principal Act

35.—Part V of the Principal Act is amended by the substitutionfor the title to that Part of the following title:

‘‘PART V

Disclosure of Information in relation to Scheme and 40Remittance of Contributions by Employers’’.



(i) by the insertion after ‘‘trustees of a scheme’’ of ‘‘orany employer to whom a scheme relates’’; and 45

(ii) by the insertion in paragraph (b) after ‘‘scheme’’ of‘‘, including any commission, charge, expense orremuneration paid or received in connection withthe scheme’’;

(b) in subsection (4)—

(i) by the substitution of the following paragraph forparagraph (a):

‘‘(a) The trustees of a scheme may request anemployer to whom the scheme relates to fur-5nish them with such information as they mayreasonably require for the purposes of theirfunctions under this Act or regulationsthereunder and the employer shall complywith any such request.’’;10

(ii) by the insertion after paragraph (a) of the followingparagraph:

‘‘(aa) Any employer to whom a scheme relates mayrequest the trustees of the scheme to furnishhim with such information as he may reason-15ably require for the purposes of his functionsunder this Act or regulations thereunder andthe trustees shall comply with any suchrequest.’’;

(iii) by the insertion in paragraph (b) after ‘‘trustees of the20scheme’’ of ‘‘or any employer to whom the schemerelates’’; and

(iv) by the insertion in paragraph (b) after ‘‘trustees’’ of‘‘or the employer’’.


(a) by the substitution in paragraph (b) of subsection (2) of‘‘1997, or’’ for ‘‘1997.’’;

(b) by the insertion after paragraph (b) of subsection (2) of thefollowing paragraph:

‘‘(c) to such extent as may be prescribed, a scheme the30winding up of which has commenced.’’; and

(c) by the insertion after subsection (2) of the followingsubsections—

‘‘(3) Where an actuarial funding certificate having aneffective date after 1 January 2001 has been prepared35under section 42 in relation to a scheme each annualreport prepared under subsection (1) which relates to aperiod ending on a day which falls after the effective dateof that actuarial funding certificate shall, unless subsec-tion (4) applies to it, include a statement by an actuary40in such form as may be prescribed as to whether he isreasonably satisfied that, if he were to prepare undersection 42 an actuarial funding certificate having an effec-tive date of the last day of the period to which the annualreport relates, he would certify that the scheme satisfies45the funding standard provided for in section 44.

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98

(4) Where in the most recent actuarial funding certifi-cate prepared under section 42 in relation to a schemethe actuary certifies that at the effective date of that cer-tificate the scheme does not satisfy the funding standard,and a funding proposal has been submitted by the trus- 5tees of the scheme to the Board in accordance withsection 49, each annual report prepared under subsection(1) which relates to a period ending on a day which fallsafter the effective date of that actuarial funding certifi-cate shall include a statement by an actuary in such form 10as may be prescribed as to whether he is reasonably satis-fied at the last day of the period to which the annualreport relates that the scheme will satisfy the fundingstandard at the effective date of the next actuarial fund-ing certificate. 15

(5) Where an annual report prepared under subsection(1)—

(a) does not contain a statement by the actuaryrequired under subsection (3) or (4), asappropriate, or 20

(b) contains the statement by an actuary requiredunder subsection (3) but the actuary does notstate therein that he is reasonably satisfiedthat, if he were to prepare under section 42an actuarial funding certificate having an 25effective date of the last day of the period towhich the annual report relates, he would cer-tify that the scheme satisfies the funding stan-dard provided for in section 44, or

(c) contains the statement by an actuary required 30under subsection (4) but the actuary does notstate therein that he is reasonably satisfiedthat the scheme will satisfy the funding stan-dard at the effective date of the next actuarialfunding certificate, 35

then in each case the trustees of the scheme shall notifythe Board in writing to that effect within such time limitas may be prescribed.

(6) Regulations may prescribe that an actuary, in mak-ing the statement referred to in subsection (3) or (4) shall 40comply with the applicable professional guidance issuedby the Society of Actuaries in Ireland and specified in theregulations or with any applicable guidance issued by anyother person and specified in the regulations.’’.

38.—Section 56 of the Principal Act is amended— 45

(a) by the insertion in subsection (3) after ‘‘scheme’’ of ‘‘or thebusiness of a PRSA provider’’;

(b) by the insertion in subsection (4)—

(i) after ‘‘of a particular scheme’’ of ‘‘or of the businessof a particular PRSA provider’’; and 50

(ii) after ‘‘trustees of the scheme’’ of ‘‘or to the PRSAprovider’’; and

(c) in subsection (6)—

(i) by the substitution in paragraph (a)(iii) of ‘‘1997, or’’for ‘‘1997.’’;5

(ii) by the insertion after paragraph (a)(iii) of thefollowing:

‘‘(iv) to such extent as may be prescribed,a scheme the winding up of whichhas commenced.’’;10

(iii) by the substitution in paragraph (b)(iv) of ‘‘1997, or’’for ‘‘1997.’’; and

(iv) by the insertion after paragraph (b)(iv) of thefollowing:

‘‘(v) to such extent as may be prescribed, a15scheme the winding up of which hascommenced.’’.

39.—The following section is inserted after section 56 of thePrincipal Act:

‘‘Indexation of 56A.—(1) In this section ‘indexation’, in20pensions when in

relation to a pension, means the provision of anpayment.increase, in each successive year of the periodduring which the pension is paid, of the amountof the pension, each such increase that is so pro-vided being equal to a percentage of the amount25of the pension in payment at the time the increasefalls to be made, being a percentage at least equalto the lower of—

(a) the percentage increase in the generallevel of consumer prices during a per-30iod of twelve months ending at anytime within twelve months before theincrease of the amount of pensionfalls to be made, determined by thetrustees in such manner as they think35appropriate, and

(b) four per cent.

(2) This section applies to a scheme to whichsection 56(1)(b) applies, the rules of which do notrequire either—40

(a) indexation of pensions, or

(b) the provision of an increase, in each suc-cessive year of the period duringwhich each pension thereunder ispaid, of the amount of the pension,45each such increase that is specified in

99

Indexation ofpensions undercertain schemes tobe considered bytrustees.

100

the scheme being not less than 3 percent of the amount of the pension inpayment at the time the increase fallsto be made.

(3) The trustees of a scheme to which this 5section applies shall, at intervals not exceeding31

2 years, cause the actuary to value the additionalliability which would be imposed on the schemeby the indexation of pensions payablethereunder. 10

(4) The actuary of a scheme to which thissection applies shall report on the additional liab-ility and the resulting requirement for contri-butions which would be imposed on the schemeby the indexation of pensions as regards— 15

(a) pensions then in payment under thescheme, and

(b) pensions not then in paymentthereunder whose payment isanticipated. 20

(5) The trustees of a scheme to which thissection applies shall, following receipt of the actu-ary’s report referred to in subsection (4), considerthe possibility of effecting indexation of—

(a) pensions then in payment under the 25scheme, and

(b) pensions not then in paymentthereunder whose payment isanticipated,

and, where effecting such indexation of pensions 30would require the exercise of a discretion by anyother person, they shall report on the results oftheir consideration to that person.

(6) Where a person receives a report from thetrustees of a scheme under subsection (5), he 35shall furnish to the trustees a response by him tothat report.

(7) Regulations may provide for—

(a) the matters to be addressed by the actu-ary of a scheme in his report with 40respect to the matters referred to insubsection (4),

(b) the matters to be addressed by a personin making a response under subsec-tion (6), and 45

(c) the period within which a personrequired to respond under subsection(6) shall so respond.’’.

40.—The following section is substituted for section 57 of thePrincipal Act:

‘‘Modification of 57.—Where the Minister considers that itPart V.

would be unreasonable, having regard to theirnature and character and the size of their mem-5bership, to require specified schemes or categor-ies of schemes to comply fully with sections 54,55, 56 and 56A, he may by regulations made withthe consent of the Minister for Finance providethat, in relation to those schemes, one or more or10all of those sections shall not apply, or shall applywith specified modifications, being modificationsthat, in the opinion of the Minister are reasonableand are not such as to relieve the trustees of theobligation to furnish such information under15those sections as is appropriate in all thecircumstances.’’.

41.—The following section is inserted after section 58 of thePrincipal Act:

‘‘58A.—(1) An employer who deducts any sum from the20wages or salary of an employee for remittance to the trustees ofa scheme or to another person on their behalf, shall remit everysuch sum to the trustees or that other person on their behalf, asthe case may be, within 21 days following the end of the monthin which the deduction was made. An employer shall not make25any deductions from the sum required to be remitted by himunder this subsection.

(2) Where an employer is obliged (whether under a contractof employment, the terms of a scheme or otherwise) to pay anysum expressed as a cash amount or as a percentage or pro-30portion of an employee’s wages or salary (other than a sumdeducted from the employee’s wages or salary), on behalf of orin respect of that employee, to the trustees of a defined contri-bution scheme or to another person on their behalf, he shall,within 21 days following the end of every month, pay to the35trustees of the scheme or that other person on their behalf, asthe case may be, a sum equal to the appropriate cash amount orpercentage or proportion of every payment of wages or salarymade to that employee during that month. An employer shallnot make any deduction from the sum required to be paid by40him under this subsection.

(3) An employer who—

(a) deducts any sum from the wages or salary of anemployee for remittance to the trustees of a schemeor to another person on their behalf, or45

(b) is obliged (whether under a contract of employment,the terms of a scheme or otherwise) to pay any sum,on behalf of or in respect of an employee (other thana sum deducted from the employee’s wages orsalary), to the trustees of a defined contribution50scheme or to another person on their behalf,

shall give or cause to be given to the employee concerned andto the trustees or that other person on their behalf, a statementin writing not less frequently than once a month specifying—

101


Obligation ofemployer to remitcontributions underscheme.


102

(i) the total amount deducted from the employee’s salaryor wages and remitted to the trustees or that otherperson on their behalf, as the case may be, and

(ii) where appropriate, the total amount paid, on behalf ofor in respect of the employee (other than any 5amount deducted from the employee’s wages orsalary), to the trustees or that other person on theirbehalf, as the case may be,

in the preceding month or, if the previous such statement wasgiven less than a month before, in the period since that previous 10statement was given.

(4) The requirements of subsection (3) relating to anemployee shall be regarded as having been satisfied in respectof a particular deduction if the particulars of the deduction are,in accordance with section 9 of the Payment of Wages Act, 1991, 15included in the statement given to the employee concernedunder that section.’’.

Chapter 6

Amendments to Part VI of Principal Act

42.—The following section is substituted for section 59 of the Prin- 20cipal Act:

‘‘General duties of 59.—(1) Without prejudice to the duties of tru-trustees of schemes.

stees generally and in addition to complying withthe other requirements of this Act, the duties oftrustees of schemes shall include the following: 25

(a) to ensure, in so far as is reasonable, thatthe contributions payable by theemployer and the members of thescheme, where appropriate, arereceived and that the sums referred to 30in subsection (1) or (2) of section 58Aare invested in accordance with para-graph (b) within 10 days of the latestdate on which those sums should havebeen remitted or paid by the 35employer under subsection (1) or (2),as the case may be, of section 58A;

(b) subject to subsection (2), to provide forthe proper investment of theresources of the scheme in accordance 40with the rules of the scheme;

(c) where appropriate, to make arrange-ments for the payment of the benefitsas provided for under the rules of thescheme as they become due, whether 45in the State or in any other MemberState, net of any taxes and transactioncharges which may be applicable;

(d) to ensure that proper membership andfinancial records are kept; 50

(e) if the scheme is wound up, to apply theresources of the scheme in dischargingits liabilities without undue delay inaccordance with the rules of thescheme and, where applicable, with5section 48.

(2) Where, and to the extent that, the rules ofa scheme provide for the trustees to invest theresources of the scheme in accordance with direc-tions given by the members—10

(a) the trustees shall—

(i) determine in accordance with therules what different types ofinvestments of those resourcescould be made at the direction of15the members;

(ii) determine in accordance with therules how those resources are tobe invested in cases where themembers give no direction;20

(iii) in such circumstances and withinsuch time limits as may be pre-scribed, furnish to the memberssuch information as may be pre-scribed in relation to the determi-25nations made by them in relationto the matters referred to in sub-paragraphs (i) and (ii), and

(iv) take such steps as are reasonableto ensure that the members have30any further information neces-sary to enable the members tomake informed decisions withregard to the giving of directionsin relation to the different types35of investment referred to in sub-paragraph (i),

and

(b) where the trustees comply with therequirements of paragraph (a), they40shall incur no liability solely by reasonof giving effect to the directions of themembers given in accordance with therules.’’.

43.—The following sections are inserted after section 59C of the45Principal Act:

‘‘Duties of trustees 59D.—Regulations may provide that, inon winding-up of

relation to a scheme which is wound up on orscheme.after the commencement of section 43 of the Pen-sions (Amendment) Act, 2002,—50

(a) the trustees shall, within such period andin such manner as may be prescribed,

103

Certain duties oftrustees withrespect to windings-up and bulktransfers andinvalidity of certainacts.

104

notify such persons as may be pre-scribed of the winding-up of thescheme,

(b) the trustees shall, in the course of apply-ing the resources of the scheme in 5consequence of the winding-up, pro-vide such information to such personsin such circumstances as may be pre-scribed, and

(c) neither the trustees nor any employer to 10whose employment the schemerelates, shall exercise any discretion—

(i) as to the payment of any of theresources of the scheme to anysuch employer, or 15

(ii) as to the abatement of benefits incase of an insufficiency ofresources,

unless the members have first beenafforded such opportunity as may be 20prescribed to make observations tothe trustees or the employer, as maybe appropriate, and unless the trus-tees or employer (as the case may be)have given due consideration to such 25observations.

Duties of trustees in 59E.—(1) In this section, ‘bulk transfer’ meansconnection with

the transfer by the trustees of a scheme of anbulk transfer.amount of money or other resources in dischargeof their liability under the scheme to provide 30benefits in respect of a group of members—

(a) to the trustees of another scheme orschemes where either—

(i) the scheme under which the trans-fer is made and the scheme under 35which the transfer is receivedapply to employment with thesame employer, or

(ii) the scheme under which the trans-fer is made and the scheme under 40which the transfer is receivedapply to employment with differ-ent employers, and

(I) the transfer is made inconsequence of a financial 45transaction between theemployers, or

(II) one of the employers is a sub-sidiary (within the meaningof section 155 of the Com- 50panies Act, 1963) of theother, or both are subsidiar-ies of the same company, or

(b) to Personal Retirement SavingsAccounts where either—

(i) the person, being the employer towhose employment the schemeunder which the transfer is made5relates (‘the first-mentionedemployer’), will contribute tothose accounts, or

(ii) an employer, other than the first-mentioned employer, will con-10tribute to those accounts, and

(I) the transfer is made in con-sequence of a financial trans-action between thatemployer and the first-men-15tioned employer, or

(II) one of those two employers isa subsidiary (within themeaning of section 155 ofthe Companies Act, 1963) of20the other, or both are sub-sidiaries of the samecompany.

(2) Regulations may provide that, before anybulk transfer is effected—25

(a) the trustees of the scheme under whichthe bulk transfer is to be made shallprovide such information to such per-sons in such circumstances as may beprescribed,30

(b) in cases where the consent of themembers in respect of whom thetransfer is to be effected is not to beobtained, such persons as may be pre-scribed shall be afforded such oppor-35tunity as may be prescribed to makeobservations to the trustees of thescheme under which the bulk transferis to be made or to any employer towhose employment the scheme40applies, and the trustees or theemployer, as the case may be, shallgive due consideration to suchobservations,

(c) the trustees of the scheme under which45the bulk transfer is to be made shallensure that such other conditions asmay be prescribed have been satis-fied, and

(d) the trustees of a scheme under which the50bulk transfer is to be received shallprovide such information to such per-sons in such circumstances as may beprescribed.

105

106

Invalidity of 59F.—(1) This section shall apply to—amendments toscheme rules and ofexercises of (a) any amendment to the rules of a scheme,discretion in certain andcircumstances.

(b) any exercise of any discretionary powerunder a scheme, 5

which has the effect of augmenting the benefit ofany member or members so as materially to alterthe balance of interests between the members, orbetween the members and the employer oremployers (other than an amendment or exercise 10made or done pursuant to section 50) which ismade or done—

(i) within twelve months before or sixmonths after—

(I) the making of a bulk transfer 15within the meaning of section59E,

(II) the making of an agreement orarrangement relating to or con-nected with the sale of all or part 20of the business or interests of aperson, being the employer ofany employees who are membersof the scheme,

(III) the making of an agreement or 25arrangement relating to or con-nected with the purchase by aperson, being the employer ofany employees who are membersof the scheme, of all or part of 30the business or interests ofanother person or persons,where, pursuant to that purchase,the trustees or the said employerpropose or are required to take 35any action in relation to thescheme, or

(IV) the making of any amendment tothe rules of the scheme whichwould cause the scheme or any 40part of it to become a definedcontribution scheme,

or

(ii) within twelve months before, or at anytime after, the winding-up of the 45scheme.

(2) Regulations may provide that any amend-ment of rules, or any exercise of a power to whichthis section applies shall be invalid unless—

(a) the members affected by the amendmenthave consented in writing to theamendment,

(b) the actuary has provided a certificate tothe trustees containing such state-5ments by the actuary in respect ofsuch matters as may be prescribed,

(c) the trustees are satisfied that the changeseffected by such amendment or exer-cise were not effected with a view to10altering materially the balance ofinterests under the scheme betweenmembers or groups of members, orbetween members and the employeror employers, by reason only of the15fact that the bulk transfer, arrange-ments or agreement or winding-uphad taken place or were to take place,as the case may be, or

(d) such other conditions as may be pre-20scribed are satisfied.

(3) No legal proceedings shall lie against a per-son by reason only of anything which that personhas done or omitted to do in reliance in goodfaith on an amendment of rules or exercise of a25power rendered invalid by virtue of regulationsunder subsection (2).

(4) No person who receives any money undera scheme in reliance in good faith on an amend-ment of rules or exercise of a power rendered30invalid by virtue of regulations under subsection(2) shall be required to repay such money.’’.

44.—Section 62 of the Principal Act is amended by the insertionof the following subsection after subsection (2):

‘‘(3) Notwithstanding anything in subsection (1), regulations35under that subsection may provide that they shall not apply tomulti-employer schemes or to specified multi-employer schemesor classes of such scheme.’’.

Chapter 7

Amendment to Part VII of Principal Act40

45.—Section 80(1)(b) of the Principal Act is amended by the inser-tion after ‘‘scheme’’ of ‘‘or PRSA’’.

Chapter 8

Amendments to Part VIII of Principal Act


(a) by the insertion after ‘‘means, in relation to a scheme’’ of‘‘or a PRSA’’;

107





108

(b) by the insertion after paragraph (c) of the followingparagraph:

‘‘(cc) is an administrator, investment manager or custod-ian of the PRSA, or’’;

(c) by the substitution in paragraph (d) for ‘‘the Insurance Act, 51989’’ of ‘‘the Investment Intermediaries Act, 1995’’;

(d) by the insertion in paragraph (e) after ‘‘the scheme’’ in eachplace where those words occur of ‘‘or PRSA’’;

(e) by the substitution in paragraph (g) for ‘‘scheme undersection 59.’’ of ‘‘scheme under section 59, or’’; and 10

(f) by the insertion after paragraph (g) of the followingparagraphs:

‘‘(h) is the PRSA provider, or

(i) is a PRSA actuary, or

(j) is an auditor of the business of a PRSA provider, or 15

(k) is an employee of an employer referred to in section121.’’.


(a) by the insertion in subsection (1) after ‘‘a scheme’’ of ‘‘orPRSA’’, and 20

(b) by the insertion after subsection (2) of the following sub-sections:

‘‘(2A) Where a relevant person referred to in para-graph (i) or (j) of section 82 has reason to believe that aPRSA provider has carried on activities in relation to 25PRSA products referred to in Part X otherwise than inaccordance with that Part, that person shall, as soon as ispracticable, give to the Board a report in writing of theparticulars of such activities.

(2B) Where a relevant person referred to in section 3082(j)—

(a) has reason to believe that a PRSA provider hasnot operated a custodian account in accord-ance with the requirements of Part X; or

(b) is unable to express an opinion on a PRSA pro- 35vider’s accounts within 75 days after the endof the financial year in relation to that PRSAprovider,

that person shall, as soon as practicable, report the matterin writing to the Board. 40

(2C) Where a relevant person referred to in paragraph(h), (i) or (j) of section 82 has reason to believe that an

employer has failed or is failing to comply with the pro-visions of section 121, that person shall, as soon as is prac-ticable, give to the Board a report in writing of the par-ticulars of such failure.

(2D) Where a relevant person referred to in section582(h) knows that an employer has failed to remit one ormore contributions on behalf of that employer’semployees to the relevant person, that person shall, assoon as is practicable, give to the Board a report in writ-ing of the particulars of such failure and shall also inform10the relevant PRSA contributor or contributors of thefailure.

(2E) Any relevant person may of his own volitionreport to the Board in relation to the operation and per-formance of any PRSA product to which he is a relevant15person and the Minister may, by regulations, prescribethe format of such a report and the conditions subject towhich it may be made.

(2F) Every relevant person shall, at such intervals andsubject to such conditions as may be prescribed, make20reports to the Board in the prescribed format in respectof any PRSA for which he bears any responsibility.

(2G) Where a relevant person referred to in section82(k) has reason to believe that his employer has failedor is failing to comply with the provisions of section 121,25that person may of his own volition report such failure tothe Board.’’;

(c) by the substitution in paragraphs (a) and (b) of subsection(3) of ‘‘subsection (1), (2A), (2B), (2C), (2D) or (2F)’’for ‘‘subsection (1)’’; and30

(d) by the insertion in subsection (6) after ‘‘the scheme’’ of ‘‘orPRSA’’.

48.—Section 84 of the Principal Act is amended by—

(a) the insertion after ‘‘conduct of a scheme’’ of ‘‘or the stateof a PRSA’’; and35

(b) the substitution of ‘‘section 83’’ for ‘‘section 83(1)’’.

49.—Section 85 of the Principal Act is amended by—

(a) the substitution of ‘‘section 83’’ for ‘‘section 83(1)’’; and

(b) the insertion after ‘‘conduct of scheme’’ of ‘‘or the state ofa PRSA’’.40

Chapter 9

Amendments to Schedules to Principal Act

50.—The First Schedule to the Principal Act is amended by—

(a) the substitution in paragraph 2 of ‘‘16’’ for ‘‘14’’;

109



Amendment ofFirst Schedule toPrincipal Act.

Amendment ofSecond Schedule(title thereof) toPrincipal Act.

Amendment of PartA of SecondSchedule toPrincipal Act.

110

(b) the substitution for clauses (g) and (h) of paragraph 8(1) ofthe following:

‘‘(g) one shall be a representative of consumer interests,

(h) one shall be a representative of pensioner interests,

(i) one shall be a representative of the Minister for Fin- 5ance, and

(j) one shall be a representative of the Minister.’’;

and

(c) the insertion after subparagraph (7) of paragraph 8 of thefollowing: 10

‘‘(7A) The member of the Board representing con-sumer interests shall be a person nominated for appoint-ment thereto by the Minister or such organisation ororganisations as the Minister considers to be representa-tive of consumer organisations. 15

(7B) The member of the Board representing pensionerinterests shall be a person nominated for appointmentthereto by the Minister or such organisation or organis-ations as the Minister considers to be representative ofpensioner organisations.’’. 20

51.—The Second Schedule to the Principal Act is amended by thesubstitution for the title to that Schedule of the following title:

‘‘Preservation and Revaluation of Benefits and MinimumValue of Contributory Retirement Benefit’’.

52.—The Second Schedule to the Principal Act is amended by the 25substitution for Part A of the following Part:

‘‘PART A

Preservation of Benefits — Calculation of Pre-served Benefit — Defined Benefit Scheme

1. (1) In the case of a defined benefit scheme, 30a preserved benefit shall consist of—

(a) basic preserved benefit calculated underparagraph 2, and

(b) preserved benefit in respect of additionallong service benefit provided by 35additional voluntary contributionscalculated under paragraph 3, and

(c) preserved benefit in respect of additionallong service benefit provided by atransfer of accrued rights from 40another scheme, and

(d) in the case of a member of the schemewho is entitled to preserved benefitunder section 28(2)(b), additionalpreserved benefit calculated underparagraph 4.5

(2) Where a scheme provides for benefits to becalculated in relation to a member’s pensionableearnings at, or in a specified period prior to hisattaining, normal pensionable age or on earlierdeath, or in some other way relative to such earn-10ings, preserved benefit shall be calculated, in acorresponding manner, by reference to his earn-ings at, or in the same period before, the date oftermination of his relevant employment.

BASIC PRESERVED BENEFIT15

2. (1) Where the basis of calculating long ser-vice benefit does not alter between 1 January1991 or, if later, the date of commencement ofthe member’s relevant employment and the dateof termination of relevant employment the20amount of basic preserved benefit shall be calcu-lated in accordance with the formula—

A × B1

C

where—

A is the amount of long service benefit25(excluding any such benefit which isbeing secured by way of additional vol-untary contributions or which representsa transfer of accrued rights from anotherscheme or which represents an increase30required under section 35A) calculatedat the date of termination of themember’s relevant employment,

B1 is the period of reckonable service com-pleted after 1 January 1991, and35

C is the period of reckonable service thatwould have been completed if the mem-ber had remained in relevant employ-ment until normal pensionable age andsuch service had continued to qualify for40long service benefit.

(2) Where the basis of calculating long servicebenefit is altered between 1 January 1991 or, iflater, the date of commencement of the member’srelevant employment and the date of termination45of the member’s relevant employment theamount of basic preserved benefit shall be thesum of—

(a) the amount calculated in accordancewith the formula set out in subpara-50graph (1) where A is calculated on thebasis of the rules of the scheme in

111

112

force at 1 January 1991 or, if later, thedate of commencement of themember’s relevant employment, and

(b) an amount calculated in accordance withthe formula— 5

D × EF

where—

D is the amount of the difference in longservice benefit calculated at the date oftermination of relevant employment 10applicable to the alteration,

E is the period of reckonable service com-pleted after the date on which the basisof calculation was altered, and

F is the period of reckonable service that 15would have been completed from thedate of such alteration if the member hadremained in relevant employment untilnormal pensionable age and such servicehad continued to qualify for long service 20benefit:

Provided that where there is more than one suchalteration each alteration shall be separately cal-culated in accordance with this formula and theyshall be aggregated for the purposes of the calcu- 25lation of the amount.

(3) Any preserved benefit calculated underthis paragraph shall be subject to a minimum ofsuch amount as will ensure that the actuarialvalue of such benefit is equal to the amount of 30any contributions (excluding additional voluntarycontributions) paid by the member in respect ofthe period of reckonable service completed after1 January 1991 together with compound interestthereon at the rate, if any, applicable under the 35rules of the scheme to refunds of members’ con-tributions on leaving service.

Preserved benefit in 3.—(1) In the case of an additional long servicerespect of

benefit referred to in section 29(6), preservedadditional voluntarycontributions. benefit, in respect of such additional benefit, shall 40

include an amount calculated in accordance withthe formula—

X × YZ

where—

X is the amount of such additional benefit 45(or increase in benefit),

Y is the period of reckonable service forwhich the member of the scheme has con-tributed towards such benefit (or increasein benefit), and

Z is the period of reckonable service for5which such member would have contrib-uted towards such benefit (or increase inbenefit) if he had remained in relevantemployment until normal pensionableage.10

(2) For the purposes of subparagraph (1),‘increase in benefit’ means a benefit secured byan increase in the rate of contribution previouslycontracted and each such increase in benefit shallfor the purposes of this paragraph be treated15separately.

Additional 4. In the case of a defined benefit scheme, thepreserved benefit.

amount of additional preserved benefit shall bethe greater of, namely—

(a) an amount calculated in accordance with20the formula—

G — J

where—

G is the benefit (excluding any such benefitwhich is being secured by way of25additional voluntary contributions orwhich represents a transfer of accruedrights from another scheme) to which themember is entitled upon termination ofrelevant employment under the rules of30the scheme (disregarding any provisionfor revaluation or increase of that benefitafter the date of termination of relevantemployment), and

J is the basic preserved benefit calculated35under paragraph 2;

and

(b) an amount calculated in accordance withthe formula—

H — J40

where—

H is a benefit of such amount as will ensurethat its actuarial value is equal to theamount of any contributions (excludingadditional voluntary contributions) paid45by the member together with compoundinterest thereon at the rate, if any, applic-able under the rules of the scheme torefunds of members’ contributions onleaving service, and50

113

Amendment of PartB of SecondSchedule toPrincipal Act.

114

J is the basic preserved benefit calculatedunder paragraph 2;

and

(c) an amount calculated in accordance withthe formula— 5

A × B2

C

where—

A and C have the values ascribed to themin paragraph 2(1), and

B2 is the period of reckonable service com- 10pleted up to 1 January 1991.’’.

53.—The Second Schedule to the Principal Act is further amendedby the substitution for Part B of the following Part:

‘‘PART B

Revaluation of Preserved Benefits 15

5. (1) Any preserved benefit payable under adefined benefit scheme shall be revalued annuallyat the end of each revaluation year, by adding theappropriate amount to the amount of preservedbenefit as at the last day of the previous calendar 20year (or as at the date of termination of relevantemployment in any case where a member’s rel-evant employment has terminated since the lastday of the previous calendar year), such pre-served benefit to include any previous 25revaluation.

(2) Except as provided for in paragraphs 6 and7 the appropriate amount shall be calculated inaccordance with the formula—

P × R100

30

where—

P is the amount of preserved benefit as at the lastday of the previous calendar year (or as at thedate of termination of relevant employment inany case where a member’s relevant employment 35has terminated since the last day of the previouscalendar year), and

R is the revaluation percentage:

Provided that in any case where a member’s rel-evant employment has terminated since the last 40day of the previous calendar year R is X/twelfthsof the revaluation percentage where X is thenumber of complete months from the date on

which the member’s relevant employmentterminated to the end of the revaluation year.

6. (1) This paragraph applies to a scheme whichprovides long service benefit the rate or amountof which is calculated by reference to—5

(a) the member’s average pensionable earn-ings over the period of service onwhich such benefit is based, or

(b) the member’s total pensionable earningsover the period of service on which10such benefit is based.

(2) Any preserved benefit provided under ascheme to which this paragraph applies shall berevalued—

(a) by revaluing the pensionable earnings of15the member concerned during eachrevaluation year in any manner inwhich they could have been revaluedduring that year if the member hadremained in the same reckonable ser-20vice, or

(b) in accordance with paragraph 5,

whichever the trustees of the scheme considerappropriate.

7. (1) This paragraph applies to a scheme which25provides long service benefit—

(a) the rate or amount of which is calculatedby reference solely to the member’slength of service, or

(b) which is of a fixed amount.30

(2) Any preserved benefit provided under ascheme to which subparagraph (1) applies shallbe revalued in accordance with paragraph 5, pro-vided that where the trustees of a scheme con-sider that by revaluing a preserved benefit in such35a manner that a member whose service in rel-evant employment has terminated would betreated more favourably than a member whoremains in reckonable service in relation to theperiod of reckonable service to which the pre-40served benefit applies, they may revalue the pre-served benefit on such other basis and such otherdates as they consider just and equitable.

8. In the case of a member who is entitled to apreserved benefit under section 28(2)(a), no part45of the appropriate amount to be added to pre-served benefit under this Part shall be providedby reducing the amount of any benefit payableunder the rules of the scheme concerned inrespect of reckonable service completed before 150January 1991.’’.

115

Insertion of Part Cin Second Scheduleto Principal Act.

Amendment ofThird Schedule toPrincipal Act.

116

54.—The Second Schedule to the Principal Act is further amendedby the insertion after Part B (inserted by section 53) of the followingPart:

‘‘PART C

Minimum Value of Contributory Retirement 5Benefit

9. The minimum value of contributory retire-ment benefit shall be the actuarial value of anamount calculated in accordance with theformula— 10

360 − Q300

× R

where—

Q is—

(a) if relevant employment terminatesbefore normal pensionable age, the 15number of complete calendar monthsby which the date of termination ofthe relevant employment precedesnormal pensionable age subject to aminimum of 0 and a maximum of 60, 20and

(b) if relevant employment terminates on orafter normal pensionable age, nil,

and

R is the amount of any contributions (excluding 25additional voluntary contributions) paid by themember to the scheme together with compoundinterest thereon at the rate, if any, applicableunder the rules of the scheme to refunds ofmembers’ contributions on leaving service.’’. 30

55.—The Third Schedule to the Principal Act is amended—

(a) by the substitution for ‘‘the commencement of Part IV’’, ineach place where those words occur, of ‘‘1 January 1991’’;

(b) by the insertion in paragraph 3(a)(i) after ‘‘preserved bene-fits’’ of ‘‘to which the member is entitled under section 3528(2)(a)’’;

(c) by the insertion in paragraph 3(b)(i) after ‘‘preserved bene-fits’’ of ‘‘to which the member would be entitled undersection 28(2)(a)’’;

(d) by the substitution in paragraph 4(b)(i)(II) for ‘‘the 1st day 40of’’ of ‘‘1’’; and

(e) by the insertion of the following paragraph after paragraph4:

‘‘5. The benefits for the purposes of this paragraph shallbe calculated as at the effective date of the certificate and 45

shall be, to the extent that they have not already beenspecified in any of the preceding paragraphs—

(a) in the case of a member of that scheme whoseservice in relevant employment terminatedafter 1 June 2002 but prior to the effective5date of the certificate and in respect of whoma transfer payment has not been applied inaccordance with section 34 or 35, the greaterof—

(i) all preserved benefits to which the mem-10ber is entitled under section 28(2)(b)(including future revaluations thereof andthose benefits payable on the death of themember entitled to preserved benefit)calculated in accordance with Part III,15

(ii) any minimum contributory retirementbenefit to which the member is entitledunder section 35A, and

(iii) the benefits payable under the rules of thescheme,20

and

(b) in the case of a member of that scheme then inrelevant employment, the greater of—

(i) preserved benefits to which the memberwould be entitled under section 28(2)(b)25(including future revaluations thereof andthose benefits payable on the death of themember entitled to preserved benefit)calculated in accordance with the pro-visions of Part III,30

(ii) any minimum contributory retirementbenefit to which the member would beentitled under section 35A, and

(iii) the long service benefits payable under therules of the scheme in respect of reckon-35able service completed prior to the effec-tive date of the certificate and, where themember would be entitled to an immedi-ate retirement benefit if he unilaterallyterminated his service in relevant employ-40ment on the effective date of the certifi-cate, any increase in long service benefitarising under section 35A together withany other benefits payable on the deathof the member entitled to long service45benefit in respect of such period ofreckonable service,

calculated as if the member’s service in rel-evant employment had terminated on theeffective date of the certificate but, other than50for the purposes of section 48, disregardingany provision requiring the completion of aminimum period of qualifying service whichmay prevent the member concerned fromacquiring an entitlement to benefit on termin-55ation of such employment.’’.

117

Amendment ofSocial Welfare(Consolidation)Act, 1993.

Pension adjustmentorders.

Non-application ofOmbudsman Act,1980, in relation tomatters cognisableunder Part XI ofPrincipal Act.

118

PART 5

Amendments of Miscellaneous Other Enactments and Saving

56.—The definition of ‘‘specified body’’ in section 223(1) (asamended by section 32 of the Social Welfare Act, 2000) of the SocialWelfare (Consolidation) Act, 1993, is amended by— 5

(a) the deletion of ‘‘or’’ after paragraph (m), and

(b) the substitution for paragraph (n) of the followingparagraphs:

‘‘(n) the Pensions Board, or

(o) such other persons as may be prescribed;’’. 10

57.—(1) The definition of ‘‘pension scheme’’ in section 2(1) of theFamily Law Act, 1995, is amended by the insertion after paragraph(b) of the following:

‘‘(bb) a PRSA contract within the meaning of Part X of the Pen-sions Act, 1990, or’’. 15

(2) The definition of ‘‘pension scheme’’ in section 2(1) of the Fam-ily Law (Divorce) Act, 1996, is amended by the insertion after para-graph (b) of the following:

‘‘(bb) a PRSA contract within the meaning of Part X of the Pen-sions Act, 1990, or’’. 20

58.—(1) Section 5(1) of the Ombudsman Act, 1980, is amendedby—

(a) the deletion of ‘‘or’’ after paragraph (f),

(b) the substitution in paragraph (g) for ‘‘this Act;’’ of ‘‘this Act,or’’, and 25

(c) the insertion of the following paragraph after paragraph (g):

‘‘(gg) if the action falls within a category of complaintor dispute to which paragraph (a), (b) or (c) ofsubsection (2) of section 131 of the Pensions Act,1990, applies (and is not excluded from the juris- 30diction of the Pensions Ombudsman by virtue ofregulations under paragraph (b) or (c) of subsec-tion (6) of the said section 131), being an actionthat could otherwise be investigated by theOmbudsman under this Act;’’. 35

(2) Notwithstanding the amendment effected by subsection (1) ofthis section, anything commenced but not completed before the com-mencement of this section by the Ombudsman under the Ombuds-man Act, 1980, may be carried on and completed after such com-mencement by the Ombudsman as if this section had not been 40enacted.

59.—Any instrument or document that is made or issued under aprovision of the Principal Act that is amended by this Act and whichis in force immediately before the commencement of the amendmentshall, save to the extent that it is inconsistent with the provision asso amended, continue in force as if made or issued under the said5provision.

119

Saving.

bille na bpinsean (leasu´ ), 2001 pensions (amendment

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