S.I. 188 of 2012


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S.I. 188 of 2012

 

Occupational Pension Schemes (Funding Standard) (Amendment) Regulations, 2012

 

EXPLANATORY NOTE

 

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

Part 3 of the Social Welfare and Pensions Act 2012 provides for a number of amendments to the Pensions Act 1990. These amendments include the introduction of a risk reserve and provisions permitting the Minister to prescribe guidance issued in relation to various matters provided for in Part IV of the Act.

These Regulations prescribe guidance issued by the Pensions Board and/or the Society of Actuaries in Ireland. Separate guidance has issued in respect of the following matters:

  • 1. Completion of an actuarial funding certificate or funding standard reserve certificate in accordance with section 42 of the Act taking into account and giving credit to schemes who hold sovereign annuities and/or sovereign bonds. (Section 42 Guidance)
  • 2. What resources or investments shall be included for the purposes of calculating the Funding standard or the funding standard reserve requirements; (Section 47 Guidance)
  • 3. Certification of a funding proposal by the scheme actuary under section 49(2) of the Act (Section 49 Guidance), in relation to the requirements which a funding proposal must comply with and with which the trustees must ensure compliance and setting out the terms on and circumstances in which
  • The Pensions Board may specify a later date by which a scheme must satisfy the funding requirements.
  • the trustees of a scheme are not required to submit a funding proposal under section 49 of the Act;
  • the trustees of a scheme are required to notify the Pensions Board of a failure to comply with a term of a funding proposal submitted under section 49 of the Act;
  • the Pensions Board may declare that a funding proposal is no longer a valid funding proposal for the purposes of section 49 of the Act; and
  • 4. the form by which trustees of a scheme may apply to the Pensions Board for a direction under section 50 of the Act (Section 50 Guidance) and the requirements to be met by trustees in relation to any such application which will require the trustees to:
  • carry out a comprehensive review of the scheme with a view to the long term stability and sustainability of the scheme; [188] 9
  • Confirm that a request was made to the employer for contributions sufficient to ensure the long term stability and sustainability of the scheme without the reduction sought in the application;
  • seek legal and actuarial advice on the proposal;
  • notify members of the scheme and any person receiving benefits under the scheme of the proposals to reduce scheme benefits. In addition, these Regulations also prescribe the form of actuarial funding certificate and funding standard reserve certificate to be used where the certificate has an effective date on or after 1 June 2012
Last modified:02/03/2017