Before we commence, I remind Members that a Senator may speak only once on Report Stage, except the proposer of an amendment who may reply to the discussion on the amendment. Also, on Report Stage, each amendment must be seconded. Amendments Nos. 1 to 66, inclusive, form a composite proposal and may be discussed together by agreement.
Pensions (Amendment) Bill, 2001: Report and Final Stages.
Government amendment No. 1:
In page 6, to delete lines 8 to 10 and substitute the following:
" "applicant" means a person who applies for approval of a PRSA product under section 94;".
I thank the House for allowing the Bill to be taken at this time. I also thank Senators for their forbearance in regard to the arrangements in this respect.
Amendments Nos. 1 to 66, inclusive, relate to the change I referred to on Committee Stage regarding the licensing arrangements for PRSAs. The Bill, as published, envisaged that this would be undertaken by the Pensions Board. However, following further consultation with my colleagues, the Tánaiste and Minister for Enterprise, Trade and Employment and the Minister for Finance, I now propose that the PRSA provider will be as set out in the revised definition. The following will be appropriately authorised entities: an investment firm, an insurance undertaking and a credit union which produce, market or sell PRSA products. This means, for example, that existing financial entities which are already appropriately licensed by the Central Bank or by the Department of Enterprise, Trade and Employment can be PRSA providers. Any entity which wishes to be a PRSA provider can apply to the Central Bank for authorisation.
The requirement for a PRSA provider to be a separate company has been removed, which given the representation I received on this point should facilitate PRSA providers coming forward. I am aware that some companies are setting up separate companies. These changes mean that the sections of the Bill dealing with the licensing of the provider are now redundant and I propose to delete them.
As already envisaged in the Bill, the PRSA product will be approved and monitored by the Pensions Board and by the Revenue Commissioners, as provided by the insertion of section 92 in the Pensions Act. Revenue approval will be contingent on the Pensions Board having approved the product.
Section 94 to be inserted into the Pensions Act sets out the requirements for approval of a product in this regard. The applicant for approval of a product must have adequate levels of expertise, supply the Pensions Board with all the necessary information and organise the structure of its business in such a way that allows the board to perform its supervisory functions. The board shall prepare a code of conduct with respect to the producing, marketing and selling of PRSAs having regard to the need to provide for the protection of consumers and for the effective supervision of products.
Given the changes in arrangements which will reduce the work of the Pensions Board at the initial approval stage, the time limit for the board reaching a decision on product approval has been reduced from six months to three months. I am satisfied that the revised arrangements will not in any way lessen the protection for the consumer, the PRSA contributor.
The provisions regarding changes and disclosure information together with those regarding the employer providing access to a standard PRSA remain the same. The proposed changes in the licensing and monitoring of the PRSA provider mean that there are some technical consequential changes to be made in Part 4, with which I will deal later. Overall, I suggest the proposed amendments will simplify the legislation, which is a good thing.
Parliamentary history is being made this morning, as I am not aware of 66 amendments having been taken together previously as part of one proposal. I am glad there are only three parliamentary Stages effectively in taking this Bill because it has grown exponentially since its inception. It was a hefty Bill on Second Stage, by the end of Committee Stage it was a large Bill and by the end of Report Stage it will become almost a bound volume when all the changes are incorporated.
If we were not at this stage in the life of this Parliament and if there was not such general agreement that this is an important and positive Bill, for which many people are waiting, there would be concern at the way in which we are taking it. The Minister's Department, his officials, the Pensions Board and Revenue were helpful in the briefing they gave us. One lesson I learnt from the experience of dealing with this Bill is that it is one that should be taken in a specialist committee which could examine it and provide the necessary back-up to the members involved. We are at a disadvantage here. I worry that we are going through this Bill at such speed that there may very well be visits later to the Supreme Court, but we will have to live with that.
I presume there was wide consultation with the various interests involved before the drawing up of these amendments, which in effect create a new section. I had a communication yesterday from a professional body involved in pension brokering. To my surprise it seemed only to be aware of the Bill at this stage and sought to make a number of amendments to it. While I do not want to comment on the body, the way it has handled its business does not speak well of it, given that it communicated with me only yesterday on this Bill. I will forward its correspondence to the Minister's officials – who may have spoken to this body already – after the debate. In any event I was a little perturbed by this.
Amendment No. 67 on page 12 of the list of the amendments—
We are dealing only with amendments Nos. 1 to 66. We will deal with amendment No. 67 later.
The two points I want to make relate to section 67. Perhaps the Minister will assure me that there has been full consultation on these amendments and there is no mooted objection by any of the major interests to what is being done.
I can give the Senator that assurance. In relation to amendments Nos. 1 to 66 which deal with changes to the licensing arrangements, we consulted fully with the social partners and they are all in agreement in regard to them.
If the Senator has correspondence from an organisation that has a query regarding that aspect, he might let us have it and between now and when the Bill goes to the Dáil we will examine it. The representations may not be in regard to this point, as it is quite straightforward. Even though there are 66 amendments in regard to it, they all relate in effect to changes in the licensing arrangements.
I accept what the Senator said about the passing of this Bill. I thank him and his party col leagues for their views that this Bill should be passed. Given the timescale available, everyone concerned, including all those who had a long input into this legislation, want it to be passed. I thank all those for their forbearance in that respect.
I agree with what Senator Manning said about a specialist committee. I have had the opportunity during my time in Leinster House to serve on special committees which have each examined one piece of legislation. I found that an interesting experience and one which resulted in a better Bill in each case than if it had been dealt with through the normal course.
All the proposals we are making, in effect, have the agreement of the social partners. If there was a major objection to them, we would probably not be able to pass this Bill. I indicated when the Bill was introduced on Second Stage in the Seanad that we would leave a long timespan between that Stage and Committee Stage to allow people to make representations. We published the bones of the Bill long before we published the Bill to allow the industry and the social partners to give their views. I was upfront and said we would be amenable to amendments to the legislation. I approached all the various institutes and organisations representing interests in this area and said we were more than willing to listen to reasonable submissions to the legislation, as a result of which more than 200 were received. There is virtually no disagreement in relation to any aspects in respect of which proposals have been put forward.
Amendment agreed to.
Government amendment No. 2:
In page 7, to delete lines 9 to 13 and substitute the following:
"(i) any deduction from the PRSA assets or a contribution for the benefit of the PRSA provider, any intermediary, including an investment business firm authorised under the Investment Intermediaries Act, 1995, or a member firm authorised under the Stock Exchange Act, 1995, or the employer;”.
Amendment agreed to.
Government amendment No. 3:
In page 8, between lines 21 and 22 to insert the following:
"(e) the business of an investment limited partnership established under the Investment Limited Partnerships Act, 1994; or”.
Amendment agreed to.
Amendment No. 4 is a Government amendment. I draw the attention of Senators to the footnote to the amendment. It should refer to amendment No. 3 and should read
"[*This is the appropriate reference if amendment No. 3 is accepted]”.
Government amendment No. 4:
In page 8, to delete lines 22 to 26 and substitute the following:
"(f) any other collective investment scheme established in another state, the marketing of the units of which to members of the public in the State is approved by the Central Bank;”.
Amendment agreed to.
Government amendment No. 5:
In page 9, lines 56 and 57, to delete "in accordance with the terms of a custodial contract".
Amendment agreed to.
Government amendment No. 6:
In page 10, to delete lines 16 to 24.
Amendment agreed to.
Government amendment No. 7:
In page 10, line 25, to delete "includes" and substitute "means".
Amendment agreed to.
Government amendment No. 8:
In page 10, to delete lines 26 to 32 and substitute the following:
"(a) an investment firm authorised in accordance with Council Directive 93/22/EEC of 10 May 1993 by a competent authority where the firm's authorisation permits it to engage in the proposed activities as an investment manager under this Part' and”.
Amendment agreed to.
Government amendment No. 9:
In page 10, lines 43 and 44, to delete "business".
Amendment agreed to.
Government amendment No. 10:
In page 10, to delete lines 49 and 50.
Amendment agreed to.
Government amendment No. 11:
In page 11, to delete lines 1 and 2.
Amendment agreed to.
Government amendment No. 12:
In page 11, to delete lines 34 to 41 and substitute the following:
" "Personal Retirement Savings Account provider" or "PRSA provider" means–
(a) an investment firm authorised in accordance with Council Directive 93/22/EEC of 10 May 1993 by a competent authority where the firm's authorisation permits it to engage in the proposed activities as such a provider under this Part; and
(b) an insurance undertaking authorised to transact insurance business in the State, whether by establishment, branch or provision of services, that falls within any of the Classes of Insurance 1, III or VII as set out in the Annex to the Council Directive 79/267/EEC of 5 March 1979; and
(c) a credit institution, which produces, markets or sells Personal Retirement Savings Account products;”.
May I speak on this amendment?
It has already been discussed with amendment No. 1, but I will allow the Senator.
On the question of PRSA products, I asked the Minister on Committee Stage how many types of pension schemes would qualify as PRSA products and he said two. I may be confusing myself on this. What is the status of buy-out bonds and retirement annuity contracts? The social partners recommended that there should be only two types of pension schemes. Obviously, there are four now. If my question makes sense, perhaps the Minister would answer it.
All the types of schemes the Senator mentioned will still remain, as will occupational pension schemes, because there is provision in the legislation for people even to transfer from them to PRSAs. This will not affect any of the existing schemes.
Can they transfer?
They can, from occupational pensions into PRSAs.
But not the others?
Subject to the legislation. I am informed that they cannot transfer from a buy-out bond into a PRSA but otherwise ordinary occupational pensions—
Is there a reason for that?
It is not covered in the legislation. That is all the information we have in relation to it. They are not similar to PRSAs in any event but, as I said earlier, all the other occupational pension schemes can be transferred into the PRSA subject to the arrangements in the legislation and subject to the tax provisions to which we will refer later on.
Amendment agreed to.
Government amendment No. 13:
In page 12, to delete lines 1 to 12.
Amendment agreed to.
Government amendment No. 14:
In page 12, line 20, to delete "A notice" and substitute "Without prejudice to subsection (5), a notice".
Amendment agreed to.
Government amendment No. 15:
In page 12, to delete lines 37 to 45 and substitute the following:
"(d) in the case of an officer or employee of a PRSA provider, whether authorised to receive the notice, direction or other document concerned or not, by sending it to him by post in a prepaid letter to the address of the principal office of that PRSA provider.”.
Amendment agreed to.
Government amendment No. 16:
In page 13, between lines 7 and 8, to insert the following:
"(5) References in this Part (other than in section 112(1), in so far as it relates to the furnishing of the information concerned under paragraph(a) thereof, and section 114(4)) to the provision of information by a PRSA provider to a contributor or a person referred to in section 111(1) (a “prospective contributor“) shall, unless the context otherwise requires, be construed as including references to the provision of the information by the PRSA provider to the contributor or prospective contributor–
(a) by means of an electronic method,
(b) by means of telephone, or
(c) by any other means provided for in the PRSA contract concerned or as may otherwise be agreed between the provider and the contributor or prospective contributor,
but the use of any of those means for that purpose shall not relieve the provider of the obligation to ensure that the contributor or prospective contributor receives the information.".
Amendment agreed to.
Government amendment No. 17:
In page 13, to delete lines 8 to 50, and in page 14, to delete lines 1 to 4, and substitute the following:
92.–(1) A person who wishes to produce, market or sell a PRSA product shall make an application to the Board and the Revenue Commissioners for the grant, under section 94, of approval by the Board and the Revenue Commissioners of the product.
(2) The approval of a PRSA product under section 94 shall not constitute a warranty as to the solvency of the person who will produce the product and neither the Board nor the Revenue Commissioners shall–
(a) be liable in respect of any losses incurred through the insolvency or default of a person who produces a product that has been so approved, or
(b) have any duty to any contributor regarding the investment performance of a PRSA product.”.
Amendment agreed to.
Government amendment No. 18:
In page 14, line 6, to delete "licences" and substitute "approval of PRSA products under section 94".
Amendment agreed to.
Government amendment No. 19:
In page 14, to delete lines 8 to 50, and in page 15, to delete lines 1 to 4 and substitute the following:
94.–(1) An application for approval of a PRSA product under this section shall–
(a) be made in writing and signed by two directors of the applicant and be in such form and contain such particulars as the Board and the Revenue Commissioners may from time to time determine, and
(b) be accompanied by a certificate provided by a PRSA actuary and two directors of the applicant stating that it is the opinion of the actuary and those directors that the product complies with the requirements of this Part and any regulations made under section 103(2).
(2) A product shall not be approved under this section by the Board unless the applicant satisfies the Board–
(a) that the product complies with the requirements of this Part and any regulations made under section 103(2),
(b) that, as regards the producing, marketing or selling by the applicant of the product, the applicant–
(i) has adequate levels of expertise to carry on those activities,
(ii) will establish and follow proper procedures so as to enable the Board to be supplied with all information necessary for the performance by the Board of its supervisory functions in relation to those activities and to enable members of the public to be supplied with any information which the Board may specify, and
(iii) has organised the structure of its business, in so far as the carrying on of those activities is concerned, in a manner that will facilitate the Board in performing its supervisory functions in relation to those activities, and
(c) in case the applicant is an undertaking referred to in paragraph (b) of the definition of “PRSA provider” in section 91(1), the activities referred to in paragraph (b)(i) will be carried on solely for the purpose of the effecting and carrying out by it of life assurance policies.
(3) A product shall not be approved under this section by the Revenue Commissioners unless–
(a) the Board has notified them that it has approved the product under subsection (2), and
(b) in accordance with the provisions of Chapter 2A (inserted by section 4 of this Act) of Part 30 of the Taxes Consolidation Act, 1997, they approve the product for the purposes of this subsection.
(4) If an application for approval under this section relates to two or more products, the Board and the Revenue Commissioners may approve or refuse to approve one or more of the products as they consider appropriate.
(5) The Board shall prepare, and amend from time to time as it considers appropriate, a code of conduct with respect to the producing, marketing and selling by PRSA providers of PRSA products and may attach to any approval granted by it and the Revenue Commissioners under this section (whether at the time of the grant of approval or any time thereafter) a condition requiring the relevant PRSA provider to comply, in respect of the product, with the code.
(6) In preparing a code under subsection (5), the Board shall have regard to –
(a) the need to provide for the protection of PRSA contributors, and
(b) the need to provide for effective supervision of the producing, marketing and selling of PRSA products.
95.–Any person who, in purported compliance with section 94(1), makes a statement knowing it to be false or misleading in a material particular shall be guilty of an offence.
96.–(1) An applicant shall comply with the following provisions–
(a) the applicant shall, unless it has satisfied the Board that it intends to provide and is capable of providing such a service itself, enter into a contractual arrangement with one or more investment managers to provide an investment service in respect of its PRSA product or products in accordance with this Part in the event that those products are approved by the Board,”.
Amendment agreed to.
Government amendment No. 20:
In page 15, lines 9 and 10, to delete "business in the event that the applicant is granted a licence," and substitute "PRSA products in the event that those PRSA products are approved by the Board,".
Amendment agreed to.
Government amendment No. 21:
In page 15, to delete lines 11 to 20 and substitute the following:
"(c) the applicant shall, unless it has satisfied the Board that it intends to provide and is capable of providing such services itself, enter into a contractual arrangement with one or more administrators to provide administration services in respect of its PRSA product or products in accordance with this Part in the event that those products are approved by the Board,”.
Amendment agreed to.
Government amendment No. 22:
In page 15, line 29, to delete "the applicant is granted a licence," and substitute "those products are approved by the Board,".
Amendment agreed to.
Government amendment No. 23:
In page 15, to delete lines 30 to 37 and substitute the following:
"(e) subject to subsection (2) and unless it has satisfied the Board that it intends to provide and is capable of providing such services itself, the applicant shall enter into a custodian contract with one or more than one custodian to hold moneys paid by or on behalf of PRSA contributors in accordance with this Part under PRSA contracts and the PRSA assets relating to those PRSA contracts in the event that the applicant's PRSA products are approved by the Board,”.
Amendment agreed to.
Government amendment No. 24:
In page 15, to delete lines 38 to 44.
Amendment agreed to.
Government amendment No. 25:
In page 15, between lines 47 and 48, to insert the following:
"(2) If the PRSA provider is an undertaking referred to in paragraph (b) of the definition of ‘PRSA provider' in section 91(1) (and, accordingly, its activities as such a provider are confined to activities for the purposes of the effecting and carrying 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 section 91(1) and subsections (3), (4) and (5) of section 121 shall, in relation to it, apply as if the references in that definition and those subsections to ‘the relevant custodian account of a PRSA provider, were references to ‘a PRSA provider'.
(3) If a PRSA provider, having satisfied the Board, in accordance with paragraph (e) of subsection (1), that it intends to do so and is capable of doing so, provides itself the services referred to in that paragraph, then section 98(1) shall not apply to moneys held in the custodian account maintained by that provider.".
Amendment agreed to.
Government amendment No. 26:
In page 15, line 52, to delete "a licence" and substitute "approval of the PRSA product".
Amendment agreed to.
Government amendment No. 27:
In page 15, line 54, to delete "a licence" and substitute "approval of a PRSA product".
Amendment agreed to.
Government amendment No. 28:
In page 16, line 4, to delete "a licence" and substitute "approval of the PRSA product concerned".
Amendment agreed to.
Government amendment No. 29:
In page 16, line 6 to delete "6" and substitute "3".
Amendment agreed to.
Government amendment No. 30:
In page 16, line 10, to delete "6" and substitute "3".
Amendment agreed to.
Government amendment No. 31:
In page 16, to delete lines 13 to 18 and substitute the following:
"(7)(a) Where the Board refuses an application for approval under section 94 the applicant may appeal to the Court in a summary manner against that refusal.”.
Amendment agreed to.
Government amendment No. 32:
In page 16, to delete lines 40 to 51 and in page 17, to delete lines 1 to 26.
Amendment agreed to.
Government amendment No. 33:
In page 17, to delete lines 27 to 29 and substitute the following:
97.–(1) The Board, after, where appropriate, consultation with the Revenue Commissioners, may at any time suspend or withdraw the approval under section 94 of a PRSA product if the Board is satisfied that the relevant PRSA provider".
May I ask a question on amendment No. 33?
Yes.
I totally agree with what is being done here. What type of provision exists for the publicising of the revocation of the licence? After consultation the board may suspend or withdraw. Is there any obligation on the board to ensure such a withdrawal is widely publicised so that it does not just appear in Iris Oifigiúil or on the back in a small notice like some planning applications and to ensure that those affected are very much aware of this?
There is provision elsewhere in the legislation whereby if the board is revoking a product it has to put a notice in Iris Oifigiúil and also in public newspapers. I will be able to provide the reference later for the Senator.
Thank you.
Amendment agreed to.
Government amendment No. 34:
In page 17, line 30 and 31 to delete "revocation of the licence" and substitute "withdrawal of the approval".
Amendment agreed to.
Government amendment No. 35:
In page 17, lines 37 and 38, to delete "granting of a licence" and substitute "granting of an approval under section 94 in respect of products produced by it".
Amendment agreed to.
Government amendment No. 36:
In page 17, line 42, to delete "licence" and substitute "approval".
Amendment agreed to.
Government amendment No. 37:
In page 17, to delete lines 44 to 48 and substitute the following:
"changed and are such that, if an application for the approval of the PRSA product were made in the changed circumstances, it would be refused by either the Board or the Revenue Commissioners or, if in the light of information available to the Board at that".
Amendment agreed to.
Government amendment No. 38:
In page 18, to delete lines 1 and 2 and substitute the following:
"appropriate to suspend or withdraw the approval".
Amendment agreed to.
Government amendment No. 39:
In page 18, to delete lines 3 to 46, and substitute the following:
"(2) Whenever the Board suspends or withdraws approval of a PRSA product under subsection (1) (other than in pursuance of a request by the relevant PRSA provider to do so) it shall notify the relevant PRSA provider in writing that it has suspended or withdrawn the approval.
(3) The Board may, if it is satisfied that the grounds referred to in paragraph (c) or (d) of subsection (1) exist, require the rel evant PRSA provider not to accept new contributors or further contributions in respect of the PRSA product or products concerned during such period as the Board may determine and the PRSA provider shall comply with that requirement.
(4) Whenever approval is suspended or withdrawn by virtue of subsection (1) the relevant PRSA provider shall immediately inform in writing any contributor who may be affected by such suspension or withdrawal of that suspension or withdrawal.
(5) On a PRSA provider being notified under subsection (2) that approval of the PRSA product or products concerned has been withdrawn, it shall immediately transfer or make arrangements without undue delay for the transfer of the PRSA assets, the subject of each such product, to such other PRSA provider or providers as may be nominated by the contributors concerned. In the event of a contributor not making such a nomination within a reasonable period of time, then such transfer shall be made to such PRSA provider or providers as shall be approved by the Board.
(6) Subject to subsections (5) and (8), whenever approval has been withdrawn by virtue of subsection (1), all PRSA contracts to which the relevant PRSA provider at the time of such withdrawal is a party may be terminated by it but without any imposition of a penalty on the relevant PRSA contributors.".
Amendment agreed to.
Government amendment No. 40:
In page 18, line 48, to delete "revoke a licence" and substitute "withdraw an approval".
Amendment agreed to.
Government amendment No. 41:
In page 19, to delete lines 4 to 6 and substitute the following:
"(9) Where approval of a PRSA product is withdrawn, the relevant PRSA provider shall continue to be subject to the duties and obligations".
Amendment agreed to.
Government amendment No. 42:
In page 19, to delete lines 14 to 17 and substitute the following:
"(10) The Board shall publish notice of withdrawal of approval of a PRSA product in Iris Oifigiúil and in one or more newspapers circulating in the State within 28 days of such withdrawal.".
Amendment agreed to.
Government amendment No. 43:
In page 19, to delete lines 26 to 32 and substitute the following:
"(12) (a) Where the Board suspends or withdraws an approval, the relevant PRSA provider may appeal to the Court in a summary manner against that suspension or withdrawal.”.
Amendment agreed to.
Government amendment No. 44:
In page 20, to delete lines 1 to 6.
Amendment agreed to.
Government amendment No. 45:
In page 20, to delete lines 14 to 30.
Amendment agreed to.
Government amendment No. 46:
In page 20, to delete lines 31 to 49, and in page 21 to delete lines 1 to 7 and substitute the following:
99.–(1) A PRSA provider shall prepare and deliver to the Board in respect of each period of 3 months–
(a) a report in relation to the business of the provider, and
(b) a return relating to the contributors to its PRSA products which shall include such personal information in relation to each such contributor as the Board may require for the purpose of meeting its obligations under section 117(1) relating to recording and maintaining statistics of contributors.”.
Amendment agreed to.
Government amendment No. 47:
In page 21, line 21, to delete "subsection (1)(a)(ii)" and substitute "subsection (1)(b)".
Amendment agreed to.
Government amendment No. 48:
In page 21, between lines 21 and 22, to insert the following:
"(5) A PRSA provider shall promptly notify the Board of any material fact or circumstance which relates to that PRSA provider or the conduct of its activities as such a provider which might reasonably influence the Board in determining whether or not to exercise the powers under section 97.".
Amendment agreed to.
Government amendment No. 49:
In page 21, to delete lines 22 to 54, and in page 22 to delete lines 1 to 46 and substitute the following:
100.–A person shall not produce, market or sell a PRSA product which is not for the time being approved by the Board and the Revenue Commissioners under section 94.".
Amendment agreed to.
Government amendment No. 50:
In page 23, to delete lines 11 to 17 and substitute the following:
"(4) A PRSA contract shall provide for the payment of the PRSA assets to the contributor as they become due, whether in the State or in any other Member State, net of any taxes and transaction charges which may be applicable.
(5) The Investment Intermediaries Act, 1995, is amended–
(a) in section 2(1), by the insertion in the definition of ‘investment instruments', after paragraph (m), of the following:
‘(n) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990,',
(b) in section 25(b)–
(i) by the deletion in subparagraph (vi) of ‘or',
(ii) by the substitution in subparagraph (vii) of ‘policies, or' for ‘policies.' and
(iii) by the insertion after subparagraph (vii) of the following:
‘(viii) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990.',
and
(c) in section 26(1)(a) by the substitution of ‘tracker bonds, insurance policies or Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990' for ‘tracker bonds or insurance policies'.
(6) Section 3(1) of the Stock Exchange Act, 1995, is amended, in the definition of ‘investment instruments'–
(a) by the deletion in paragraph (d) of ‘and', and
(b) by the insertion after paragraph (d) of the following:
‘(dd) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990, and'.”.
Amendment agreed to.
Government amendment No. 51:
In page 23, line 24, to delete "in funds" and substitute "in a manner".
Amendment agreed to.
Government amendment No. 52:
In page 23, line 41, to delete "prudential".
Amendment agreed to.
Government amendment No. 53:
In page 27, line 47, after "provider" to insert ", not being a PRSA provider referred to in section 96(3),".
Amendment agreed to.
Government amendment No. 54:
In page 28, between lines 7 and 8, to insert the following:
"(4) Where a contribution is paid to an intermediary, including an investment business firm authorised under the Investment Intermediaries Act, 1995, or a member firm authorised under the Stock Exchange Act, 1995, in respect of a PRSA contract entered into by a PRSA provider, the contribution shall be treated as having been paid to the PRSA provider when it is paid to the intermediary. Nothing in this subsection shall render a PRSA provider liable for a contribution paid to an intermediary in respect of a PRSA contract entered into by a PRSA provider, where the PRSA provider has given reasonable notice in writing to the PRSA contributor, that the intermediary has no authority to collect such contributions on behalf of the PRSA provider."
Amendment agreed to.
Government amendment No. 55:
In page 29, line 11, after "provider" to insert "of its activities as such a provider".
Amendment agreed to.
Government amendment No. 56:
In page 30, to delete lines 31 to 34, and substitute the following:
"(5) The Minister may by regulations require a PRSA provider to provide a Statement of Reasonable Projection to a contributor on the happening of a specified event (not being an event referred to in subsection (2)).".
Amendment agreed to.
Government amendment No. 57:
In page 30, to delete lines 35 to 38.
Amendment agreed to.
Government amendment No. 58:
In page 33, to delete lines 13 to 18 and substitute the following:
"117.–(1) The Board shall–".
Amendment agreed to.
Government amendment No. 59:
In page 34, line 20, to delete "Subject to subsection (9), each" and substitute "Each".
Amendment agreed to.
Government amendment No. 60:
In page 34, to delete lines 37 and 38 and substitute the following:
"providers and applications for approval of PRSA products.".
Amendment agreed to.
Government amendment No. 61:
In page 34, to delete lines 39 to 52 and in page 35, to delete lines 1 to 8.
Amendment agreed to.
Government amendment No. 62:
In page 35, line 19, after "periods" to insert "and with respect to such matters".
Amendment agreed to.
Government amendment No. 63:
In page 35, to delete lines 37 to 41 and substitute the following:
"(3) In–
(a) preparing a certificate under this section, or
(b) signing a certificate required under section 94(6),
a PRSA actuary shall comply with any guidelines issued by the Society of Actuaries in Ireland for this purpose and with any regulations made for the purposes of this section.".
Amendment agreed to.
The reference in amendment No. 64 to section 96(1) (c) is the appropriate reference now that amendment No. 21 has been accepted, not amendment No. 19 as it states on page 10 of the list of amendments.
Government amendment No. 64:
In page 35, to delete lines 42 to 50 and substitute the following:
"120.–Any contractual arrangement entered into in accordance with section 96(1)(c) shall include a provision requiring the administrator concerned to make provision in relation to such matters as may be prescribed”.
Amendment agreed to.
Government amendment No. 65:
In page 37, line 3, after "to" to insert "the relevant custodian account of".
Amendment agreed to.
Government amendment No. 66:
In page 38, to delete lines 3 to 5 and substitute the following:
"product is approved in accordance with this Part".
Amendment agreed to.
For the record, in relation to Senator Manning's last query, amendment No. 42 provides that the board "shall publish notice of withdrawal of approval of a PRSA product in Iris Oifigiúil and in one or more newspapers circulating in the State within 28 days of such withdrawal”.
There are two references in amendment No. 67 to the Pensions (Amendment) Act, 2001. The references should be updated to read the Pensions (Amendment) Act, 2002.
Government amendment No. 67:
In page 40, before section 4, but in Part 2, between lines 11 and 12 to insert the following:
4.–(1) The Taxes Consolidation Act, 1997 is amended–
(a) by the substitution of the following for subsection (5) of section 118:
‘(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director's or employee's spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on the death or retirement of the director or employee, other than an expense incurred by way of contribution by the body corporate to a PRSA (within the meaning of Chapter 2A of Part 30).',
(b) in Part 26–
(i) by the insertion in section 706(3) of the following paragraph after paragraph(c):
‘(d) any contract with a PRSA provider (within the meaning of Chapter 2A of Part 30) being a contract which was entered into for the purposes only of the PRSA concerned;',
and
(ii) in paragraph(b) of subsection (2) (inserted by the Finance Act, 2001) of section 730D–
(I) by the deletion in subparagraph (ii) of ‘or',
(II) by the substitution in subparagraph (iii) of ‘207(1)(b), or' for ‘207(1)(b),', and
(III) by the insertion of the following after subparagraph (iii):
‘(iv) a PRSA provider (within the meaning of Chapter 2A of Part 30) where the policy is held by the PRSA provider in the course of the business of PRSA provider,',
(iii) in subsection (3) (inserted by the Finance Act, 2001) of section 730E:
(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 the case may be,' and
(C) by the insertion of the following subparagraph after subparagraph (iii):
‘(iv) a PRSA provider (within the meaning of Chapter 2A of Part 30)', and
(II) by the substitution of the following paragraph for paragraph(f):
‘(f) contains an undertaking that should the policy holder cease to be a person referred to in subparagraph (i), (ii), (iii), or as the case may be, (iv) of paragraph (e), the assurance company will be advised accordingly, and',
(c) in subsection (6) of section 739D (inserted by the Finance 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
(iii) by the insertion of the following after subparagraph(h):
‘(i) is a person who is entitled to exemption from income tax and capital gains tax by virtue of section 787I (as inserted by section 4 of the Pensions (Amendment) Act, 2001) and the units held are assets of a PRSA (within the meaning of Chapter 2A of Part 30) and the PRSA administrator (within the meaning of that Chapter 2A) has made a declaration to the investment undertaking in accordance with paragraph 9A of Schedule 2B,',
(d) in Part 30–
(i) by the insertion in section 770(1) of the following after the definition of ‘proprietary director':
‘ "Personal Retirement Savings Account" or "PRSA" has the same meaning as in Chapter 2A of this Part;',
(ii) by the insertion in section 772 of the following after subsection (3C):
‘(3D) A retirement benefits scheme shall not cease to be an approved scheme because of any provision in the rules of the scheme whereby a member's entitlements under the scheme may, either on the member's changing employment or on the scheme being wound up, be transferred to one or more than one PRSA to which that member is the contributor, if the following conditions are satisfied–
(a) benefits have not become payable under the scheme, and
(b) the period or the aggregate of the periods for which the member has been a member of the scheme or of any other scheme related to that member's employment with, or with any person connected with, the employer immediately before the said transfer is 15 years or less.',
(iii) by the insertion in section 780 of the following after subsection (2):
‘(2A) This section shall not apply to the extent that any repayment of contributions is transferred by the administrator of the scheme to the administrator of a PRSA, by way of contribution to a PRSA to which the employee is the contributor.',
(iv) by the insertion in section 784 of the following after subsection (2B) (inserted by the Finance Act 2000):
‘(2C) Notwithstanding anything contained in this Part, a retirement annuity contract shall not cease to be an approved contract because of any provision in law, whether or not contained in the contract, whereby the parties to the contract may cancel the contract and effect a transfer of assets into one or more than one PRSA of which the individual who is a party to that approved contract is the contributor.',
and
(v) by the insertion of the following after Chapter 2–
‘Chapter 2A
Personal Retirement Savings
Accounts
787A.–(1) In this Chapter, unless the context otherwise requires–
"additional voluntary PRSA contributions" means contributions made to a PRSA by an employee, who is a member of an approved scheme or of a statutory scheme, which are–
(i) contributions made under a rule or part of a rule, as the case may be, of a retirement benefits scheme (in this definition referred to as the ‘main scheme') which provides specifically for the payment of voluntary contributions to a PRSA by members of the main scheme, or
(ii) contributions made under a separately arranged scheme approved by the Revenue Commissioners which is associated with the main scheme and which provides for voluntary contributions to a PRSA by members of the main scheme;
"approved scheme" has the same meaning as in Chapter 1 of this Part;
"approved retirement fund" has the meaning assigned to it by section 784A;
"approved minimum retirement fund" has the meaning assigned to it by section 784C;
"contract of employment" means–
(a) a contract of service or apprenticeship, or
(b) any other contract whereby an individual agrees with another person, who is carrying on the business of an employment agency (within the meaning of the Employment Agency Act, 1971) and is acting in the course of that business, to do or perform personally any work or service for a third person (whether or not the third person is party to the contract),
whether the contract is express or implied or if express, whether it is oral or in writing;
"contributor" means an individual who enters into a PRSA contract with a PRSA provider and an individual shall be regarded as a contributor to a PRSA notwithstanding that all contributions are made by that individual's employer;
"director", in relation to a company includes–
(a) in the case of a company the affairs of which are managed by a board of directors or similar body, a member of that board or body,
(b) in the case of a company the affairs of which are managed by a single director or similar person, that director or person,
(c) in the case of a company the affairs of which are managed by the members themselves, a member of that company,
and includes a person who is to be or has been a director;
"distribution" has the same meaning as in the Corporation Tax Acts;
"employee"–
(a) means a person of any age, who has entered into or works under (or where the employment has ceased, entered into or worked under) a contract of employment and references, in relation to an employer, to an employee shall be construed as references to an employee employed by that employer; and for the purposes of this Chapter, a person holding office under, or in the service of, the State (including a civil servant within the meaning of the Civil Service Regulation Act, 1956,) shall be deemed to be an employee employed by the State or Government, as the case may be, and an officer or servant of a local authority for the purposes of the Local Government Act, 2001, or of a harbour authority, health board or vocational education committee shall be deemed to be an employee employed by the authority, board or committee, as the case may be), and
(b) in relation to a company, includes a director or other officer of the company and any other person taking part in the management of the affairs of the company;
"employer" means, in relation to an employee, the person with whom the employee has entered into, or for whom the employee works under (or, where the employment has ceased, entered into or worked under), a contract of employment, subject to the qualification that the person, who under a contract of employment referred to in paragraph(b) of the definition of “contract of employment” is liable to pay the wages of the individual concerned, in respect of the work or service concerned shall be deemed to be the individual's employer;
"market value" shall be construed in accordance with section 548;
"PPS Number", in relation to an individual, means that individual's Personal Public Service Number within the meaning of section 223 of the Social Welfare (Consolidation) Act, 1993;
"Personal Retirement Savings Account" means a personal retirement savings account established by a contributor with a PRSA provider under the terms of a PRSA contract and the expression ‘PRSA' shall be construed accordingly;
"PRSA administrator" means the PRSA provider or a person to whom a PRSA provider delegates in pursuance of Part X of the Pensions Act, 1990 its administrative functions in relation to a PRSA, including a person appointed by the PRSA provider in accordance with section 787G(5);
"PRSA assets" means the assets held on behalf of a contributor in a PRSA and includes the value of any contributions made to that PRSA by any employer of the contributor;
"PRSA contract" means a contract entered into between a PRSA provider and a contributor in respect of a PRSA product;
"PRSA contribution" means a contribution within the meaning of Part X of the Pensions Act, 1990;
"PRSA product" means a PRSA product (within the meaning of Part X of the Pensions Act, 1990) that for the time being stands approved under section 94 of that Act;
"PRSA provider" has the same meaning as in Part X of the Pensions Act, 1990;
"relevant payment" in relation to a PRSA means any payment, including a distribution, made by reason of rights arising as a result of a PRSA contract and includes any annuity payable by reason of such rights;
"retirement annuity contract" means a contract approved by the Revenue Commissioners in accordance with Chapter 2 of this Part;
"retirement benefits scheme" has the same meaning as in Chapter 1 of this Part;
"specified individual", in relation to a year of assessment, means an individual whose relevant earnings for the year of assessment were derived wholly or mainly from an occupation or profession specified in Schedule 23A;
"statutory scheme" has the same meaning as in Chapter 1 of this Part.
(2) Subject to subsection (1), a word or expression that is used in this Chapter and is also used in Part X of the Pensions Act, 1990 has, except where the context otherwise requires, the same meaning in this Chapter as it has in that Part.
787B.–(1) For the purposes of this Chapter but subject to subsection (2), "relevant earnings", in relation to an individual, means any income of the individual chargeable to tax for the year of assessment in question, being any of the following–
(a) income arising in respect of remuneration from an office or employment of profit held by the individual,
(b) income from any property which is attached to or forms part of the emoluments of any such office or employment of profit held by the individual, or
(c) income which is chargeable under Schedule D and is immedi ately derived by the individual from the carrying on or exercise by the individual of his or her trade or profession either as an individual or, in the case of a partnership, as a partner personally acting in the partnership;
but does not include any remuneration from an investment company of which the individual is a proprietary director or a proprietary employee.
(2) For the purposes of this Chapter, the relevant earnings of an individual shall not be treated as the relevant earnings of his or her spouse, notwithstanding that the individual's income chargeable to tax is treated as his or her spouse's income.
(3) For the purposes of relief under this Chapter, an individual's relevant earnings shall be those earnings before giving effect to any deduction to be made from those earnings in respect of a loss or in respect of a capital allowance (within the meaning of section 2), and references to income in this Chapter (other than references to total income) shall be construed similarly.
(4) For the purposes of this Chapter, "net relevant earnings", in relation to an individual and subject to subsections (5) to (7), means the amount of the individual's relevant earnings for the year of assessment in question less the amount of any deductions to be made from the relevant earnings in computing the individual's total income for that year, being either–
(a) deductions in respect of payments made by the individual, or
(b) deductions in respect of losses or of such allowances mentioned in subsection (3), being losses or allowances arising from activities, profits or gains of which would be included in computing relevant earnings of the individual or of the individual's spouse for the year of assessment.
(5) Where in any year of assessment for which an individual claims and is allowed relief under this Chapter there is to be made in computing the total income of the individual or of the individual's spouse a deduction in respect of any such loss or allowance of the individual referred to in subsection (4)(b), and the deduction or part of it is to be so made from income other than relevant earnings, then, the amount of the deduction made from that other income shall be treated as reducing the individual's net relevant earnings for subsequent years of assessment and shall be deducted as far as may be from those of the following year, whether or not the individual claims or is entitled to claim relief under this Chapter for that year, and in so far as it cannot be so deducted, then from those of the next year, and so on.
(6) Where an individual's income for any year of assessment consists partly of relevant earnings and partly of other income, then, as far as may be, any deductions to be made in computing the individual's total income, and which may be treated in whole or in part either as made from relevant earnings or as made from other income, shall be treated for the purposes of this section as being made from those relevant earnings in so far as they are deductions in respect of any such loss referred to in subsection (4)(b) and otherwise as being made from that other income.
(7) An individual's net relevant earnings for any year of assessment shall be computed without regard to any relief to be given for that year under this Chapter either to the individual or to the individual's spouse.
(8) Notwithstanding anything in this section, for the purposes of relief under this Chapter an individual's net relevant earnings shall not exceed €254,000 but this subsection shall not apply as regards relief for additional voluntary PRSA contributions.
787C.–(1) Subject to the provisions of this Chapter, relief from income tax shall be given in respect of contributions to a PRSA by an individual chargeable to tax in respect of relevant earnings from any trade, profession, office or employment carried on or held by that individual.
(2) Where relief is to be given under this Chapter in respect of any contribution made by an individual, the amount of that contribution shall, subject to this section, be deducted from or set off against the individual's relevant earnings for the year of assessment in which the contribution is paid.
(3) Where in relation to a year of assessment a contribution to a PRSA is made after the end of the year of assessment but on or before the speci fied return date for the chargeable period (within the meaning of Part 41) the payment may, if the individual so elects on or before that date, be treated for the purposes of this section as paid in the earlier year (and not in the year in which it is paid); but where–
(a) the amount of that contribution, together with any contributions made by the individual in the year to which the assessment relates (or treated as so paid by virtue of any previous election under this subsection), exceeds the maximum amount of the reduction which may be made under this Chapter in the individual's relevant earnings for that year, or
(b) the amount of that PRSA contribution itself exceeds the increase in that maximum amount which is due to taking into account the income on which the assessment is made,
the election shall have no effect as respects the excess.
(4) Where in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for an insufficiency of net relevant earnings, the amount of the reduction which would be made but for that reason, less the amount of any reduction which is made in that year, shall be carried forward to the next year of assessment, and shall be treated for the purposes of relief under this Chapter as the amount of a qualifying contribution paid in that next year of assessment.
(5) If and in so far as an amount once carried forward under subsection (4) (and treated as the amount of a qualifying payment made in the next year of assessment) is not deducted from or set off against the individual's net relevant earnings for that year of assessment, it shall be carried forward again to the following year of assessment (and treated as the amount of a qualifying payment made in that year of assessment), and so on for succeeding years.
(6) Where relief under this Chapter for any year of assessment is claimed and allowed (whether or not relief is then to be given for that year), and afterwards there is made any additional assessment, alteration of an assessment, or other adjustment of the claimant's liability to tax, there shall be made also such adjustments, if any, as are consequential thereon in the relief allowed or given under this Chapter for that or any subsequent year of assessment.
(7) Where relief under this Chapter is claimed and allowed for any year of assessment in respect of any contribution, relief shall not be given in respect of that contribution under any other provision of the Income Tax Acts for the same or a later year of assessment.
787D.–(1) Relief shall not be given under this Chapter in respect of a contribution to a PRSA except on a claim made to and allowed by the inspector, but any person aggrieved by any decision of the inspector on any such claim may, on giving notice in writing to the inspector within 21 days after the notification to that person of the decision, appeal to the Appeal Commissioners.
(2) The Appeal Commissioners shall hear and determine an appeal to them under subsection (1) as if it were an appeal to them against an assessment to income tax, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall, with the necessary modifications, apply accordingly.
787E.–(1) Subject to this section, the amount which may be deducted or set off in any year in respect of contributions made by, or deemed in accordance with subsection (2) to have been made by, an individual to one or more PRSA products, hereafter in this section referred to as the maximum allowable contribution, shall not be more than–
(a) in the case of an individual who at any time during the year of assessment was of the age of 30 years or over but had not attained the age of 40, 25 per cent,
(b) in the case of an individual who at any time during the year of assessment was of the age of 40 years or over or who for the year of assessment was a specified individual, 30 per cent,
(c) in any other case, 15 per cent, of the individual's net relevant earnings for that year of assessment.
(2) Where for a year of assessment a sum is chargeable to tax in accordance with section 118(5) in respect of a contribution by an employer to a PRSA, the employee shall, in addition to any contributions actually made by the employee, be deemed, for the purposes of this section, to have made contributions to the said PRSA in that year of assessment equal to such sum.
(3) Where during a year of assessment an individual is a member either of an approved scheme or of a statutory scheme (hereafter in this subsection referred to as a ‘scheme') in relation to an office or employment, the following provisions shall apply, that is to say–
(a) relief shall be allowed under this Chapter as regards relevant earnings from that office or employment only in respect of contributions that are additional voluntary PRSA contributions,
(b) notwithstanding subsection (1), the amount which may be deducted or set off in that year of assessment in respect of such contributions against the individual's net relevant earnings from that office or employment shall not be more than–
(i) in the case of an individual who at any time during the year of assessment was of the age of 30 years or over but had not attained the age of 40 years, 20 per cent,
(ii) in the case of an individual who at any time during the year of assessment was of the age of 40 years or over but had not attained the age of 50 years, 25 per cent,
(iii) in the case of an individual who at any time during the year of assessment was of the age of 50 years or over, 30 per cent, and
(iv) in any other case, 15 per cent,
of the remuneration for that year of the office or employment in respect of which the contributions are made, reduced by the amount of any contributions of the individual in the year to any scheme related to the office or employment of which he or she is a member,
(c) the amount of the net relevant earnings of the individual in respect of which any other PRSA contributions are to be deducted or set off shall be reduced by the amount of the remuneration from such office or employment, and
(d) notwithstanding sections 787K and 787L, the aggregate benefits under–
(i) all schemes, of which the individual is a member, related to the office or employment, and
(ii) all Personal Retirement Savings Accounts to which the individual is the contributor of additional voluntary PRSA contributions,
shall not exceed the maximum benefits that could be provided for the individual by reference to section 772.
(4) Notwithstanding subsection (1), where the maximum allowable contribution would but for this subsection be less than €1,525, subsection (1) shall apply as if the said maximum allowable contribution were €1,525.
(5) Where an individual is entitled to relief for a year of assessment under Chapter 2 of this Part in respect of a qualifying premium, the maximum allowable contribution for that year of assessment, other than additional voluntary PRSA contributions, shall be reduced by the amount of such relief.
787F.–To the extent that any contribution to one or more than one PRSA is made from–
(a) the value of accrued rights under a retirement annuity contract,
(b) the value of accrued rights under an approved scheme or a statutory scheme, or
(c) a repayment of contributions to which section 780(2) would, but for subsection (2A) (inserted by the Pensions (Amendment) Act, 2001) of that section, otherwise apply,
it shall not be taken into account for the purposes of section 787E and no relief shall be allowed under this Chapter in respect of such a contribution.
787G.–(1) Subject to subsections (2), (3) and (4)–
(a) the amount or value of any assets that a PRSA administrator makes available to, or pays to, a PRSA contributor or to any other person, including any annuity where the whole or part of the consideration for the grant of the annuity consisted of assets which, at the time of application of the said assets for the purchase of the annuity, were PRSA assets, shall be treated as a payment to the PRSA contributor of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such distribution, and
(b) the PRSA administrator shall deduct tax from the assets at the higher rate for the year of assessment in which the assets are made available unless the PRSA administrator has received from the Revenue Commissioners a certificate of tax credits and standard rate cut-off point or a tax deduction card for that year in respect of the PRSA contributor.
(2) A PRSA administrator shall be liable to pay to the Collector-General the income tax which the PRSA administrator is required to deduct from any assets of a PRSA by virtue of this section and the individual beneficially entitled to assets held in a PRSA, including the personal representatives of a deceased individual who was so entitled prior to that individual's death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the PRSA administrator may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the PRSA administrator from the individual beneficially entitled to the assets in the PRSA or from the estate of the deceased individual, as the case may be.
(3) Subsection (1) shall not apply where the assets made available from a PRSA are–
(a) an amount made available, at the time assets of the PRSA are first made available to the PRSA contributor, by way of lump sum not exceeding 25 per cent of the value of the assets in the PRSA at that time or, in the case of a PRSA to which additional voluntary PRSA contributions were made, an amount not exceeding the amount that may be paid by way of lump sum in accordance with section 772(3)(f) in conjunction with the rules of the scheme,
(b) an amount transferred to an approved retirement fund or to an approved minimum retirement fund in accordance with section 787H,
(c) an amount made available to the personal representatives of the PRSA contributor in accordance with section 787K(1)(c)(iii),
(d) a transfer of assets from a PRSA to another PRSA, an approved scheme or a statutory scheme where–
(i) in relation to that other PRSA, approved scheme or statutory scheme the contributor to the first-mentioned PRSA is either a contributor or a member as the case may be, and
(ii) the first-mentioned PRSA is not a PRSA in respect of which a lump sum to which paragraph(a) applies has been paid or made available.
(4) For the purposes of this Chapter, the circumstances in which a PRSA administrator shall be treated as making assets of a PRSA available to an individual shall include–
(a) the making of a relevant payment by the PRSA administrator,
(b) any circumstances whereby assets cease to be assets of the PRSA, and
(c) any circumstances whereby assets cease to be beneficially owned by the contributor to the PRSA.
(5) At any time when a PRSA administrator or a PRSA provider, as the case may be–
(a) is not resident in the State, or
(b) is not trading in the State through a fixed place of business,
the PRSA provider shall ensure that there is a person resident in the State and appointed by the PRSA provider to be responsible for the discharge of all duties and obligations relating to Personal Retirement Savings Accounts which are imposed on the PRSA administrator or the PRSA provider by virtue of this Chapter and shall notify the Revenue Commissioners of the identity of that person and the fact of that person's appointment.
(6) Notwithstanding subsection (1), where assets of a PRSA are treated under subsection (4) as having been made available to an individual, the provisions of section 784A(4) shall apply as if assets of that PRSA at the time of death of that individual were assets of an approved retirement fund.
787H.–(1) At any time assets of a PRSA are allowed to be made available to a beneficiary in accordance with section 787K, that individual may opt to have those assets transferred to an approved retirement fund and the PRSA administrator shall make that transfer.
(2) The assets that a PRSA administrator shall transfer to an approved retirement fund in accordance with subsection (1) shall be the assets available in the PRSA at the time the election under that subsection is made less–
(a) any lump sum the PRSA administrator is permitted to pay without deduction of tax in accordance with section 787G(3)(a), and
(b) any amount the PRSA administrator is required to transfer to an approved minimum retirement fund in accordance with section 784C, by virtue of subsection (3).
(3) Where an individual opts in accordance with subsection (1), sections 784A to 784D shall apply as if that option were an option in accordance with section 784(2A).
787I.–(1) Exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of income derived from investments or deposits of a PRSA if, or to such extent as the Revenue Commissioners are satisfied that, it is income from investments or deposits held for the purposes of the PRSA.
(2)(a) In this subsection, “financial futures” and “traded options” mean respectively financial futures and traded options for the time being dealt in or quoted on any futures exchange or any stock exchange, whether or not that exchange is situated in the State.
(b) For the purposes of subsection (1), a contract entered into in the course of dealing in financial futures or traded options shall be regarded as an investment.
(3) Exemption from income tax shall, on a claim being made in that behalf, be allowed in respect of underwriting commissions if, or to such extent as the Revenue Commissioners are satisfied that, the underwriting commissions are applied for the purposes of the PRSA, and in respect of which the administrator of the PRSA would, but for this subsection, be chargeable to tax under Case IV of Schedule D.
787J.–(1) For the purposes of this section–
(a) a reference to a “chargeable period” shall be construed as a reference to a “chargeable period or its basis period” (within the meaning of section 321), and
(b) in relation to an employer whose chargeable period is a year of assessment, “basis period” means the period on the profits or gains of which income tax for that year of assessment is to be finally computed for the purposes of Case I or II of Schedule D in respect of the trade, profession or vocation of the employer.
(2) Subject to subsection (3), any sum paid by an employer by way of contribution under a PRSA contract of an employee shall for the purposes of Case I or II of Schedule D and of sections 83 and 707(4) be allowed to be deducted as an expense, or expense of management, incurred in the chargeable period in which the sum is paid but no other sum shall for those purposes be allowed to be deducted as an expense, or expense of management, in respect of the making, or any provision for the making, of any contributions under the PRSA contract.
(3) The amount of an employer's contributions which may be deducted under subsection (2) shall not exceed the amount contributed by that employer to Personal Retirement Savings Accounts in respect of employees in a trade or undertaking in respect of the profits of which the employer is assessable to income tax or corporation tax, as the case may be.
787K.–(1) Subject to subsection (2) and to sections 787H and 787L, the Revenue Commissioners shall not approve, for the purposes of section 94(3) of the Pensions Act, 1990, a PRSA product (within the meaning of Part X of that Act) unless it appears to them to satisfy the following conditions–
(a) that the arrangements in respect of that product will be entered into by an individual with a person lawfully carrying on in the State the business of a PRSA provider,
(b) that it includes provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment, and
(c) that it does not–
(i) provide for the payment of any sum or the making available of PRSA assets, by that person during the life of the individual of any sum except–
(I) sums payable by means of annuity to the individual,
(II) a sum payable without deduction of tax by way of lump sum, in accordance with section 787G(3)(a),
(III) assets transferred to an approved retirement fund or to an approved minimum retirement fund, in accordance with section 787H(1), or
(IV) assets made available to the PRSA contributor by the PRSA administrator, where the PRSA administrator retains such assets as would be required to be transferred to an approved minimum retirement fund if the PRSA contributor opted in accordance with section 787H(1),
(ii) provide for the annuity or other sums payable to the individual to commence or for assets to be made available to the individual before the individual attains the age of 60 years or after he or she attains the age of 75 years,
(iii) provide for the payment by that person of any other sums except sums payable by means of annuity to the individual's widow or widower and any sums which, in the event of no annuity or other benefits becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by means of return of premiums, reasonable interest on premiums or bonuses out of profits,
(iv) provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or
(v) provide for the payment of any annuity otherwise than for the life of the annuitant.
(2) The Revenue Commissioners may, if they think fit and subject to any conditions they think proper to attach to the approval under section 94 of the Pensions Act, 1990, approve, for the purposes of section 94(3) of that Act, a product otherwise satisfying the conditions referred to in subsection (1), notwithstanding that the product provides for one or more of the following matters–
(a) the payment to the individual of an annuity or other sums or the making available of assets of the PRSA to the individual commencing before he or she attains the age of 60 years, where the annuity or other sums are payable on the individual becoming permanently incapable through infirmity of mind or body of carrying on his or her own occupation or any occupation of a similar nature for which he or she is trained or fitted,
(b) in the case of an individual being an employee, the payment to the individual of an annuity or other sums or the making available of assets of the PRSA to the individual commencing on retirement at age 50,
(c) where the individual's occupation is one in which persons customarily retire before attaining the age of 60 years, the payment of the annuity or other sums to commence or the making available of assets of the PRSA to commence before the individual attains that age (but not before he or she attains the age of 50 years),
(d) the annuity payable to any person to continue for a term certain (not exceeding 10 years) notwithstanding his or her death within that term, or the annuity payable to any person to terminate, or be suspended, on marriage (or remarriage) or in other circumstances,
(e) in the case of an annuity which is to continue for a term certain, the annuity to be assignable by will and, in the event of any person dying entitled to the annuity, the annuity to be assignable by his or her personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of the annuity to a legacy or to a share or interest in the estate.
(3) Where, having regard to the provisions of this Chapter, the Revenue Commissioners are, at any time, of the opinion that approval of a product under section 94 of the Pensions Act, 1990, ought to be withdrawn they shall give notice in writing to the Pensions Board of that opinion and such a notice shall specify the grounds on which they formed that opinion.
(4) Where approval of a product is withdrawn pursuant to section 97 of the Pensions Act, 1990, there shall be made such assessments or amendment of assessments as may be appropriate for the purpose of withdrawing any relief given under this Chapter consequent on the grant of the approval.
787L.–(1) In addition to the requirements imposed by section 787K for the granting of such approval, the Revenue Commissioners shall not approve, for the purposes of section 94(3) of the Pensions Act, 1990, a PRSA product (within the meaning of Part X of that Act) unless the product provides that the individual who has entered into the arrangements in respect of it may require a sum representing the value of his or her accrued rights under the product–
(a) to be paid by the person with whom the individual has entered into such arrangements to such other person as the individual may specify, and
(b) to be applied by such other person in payment either of a contribution under a PRSA contract made between the individual and that other person or a contribution under an approved scheme of which the individual is a member.
(2) Without prejudice to subsection (1), the Revenue Commissioners shall not approve, for the purposes of section 94(3) of the Pensions Act, 1990, a PRSA product (within the meaning of Part X of that Act) unless the product provides that the PRSA provider may receive contributions from–
(a) another PRSA in respect of which the contributor to the first-mentioned PRSA is the contributor,
(b) either an approved scheme or a statutory scheme in respect of which the contributor to the first-mentioned PRSA is a member, or
(c) a contract approved by the Revenue Commissioners in accordance with Chapter 2 of this Part to which the contributor to the first mentioned PRSA is a party.
(3) References in subsection (1) to the individual by whom a contract is made include references to any widow, widower or dependant having accrued rights under the contract.',
(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
(III) by the insertion of the following paragraph after paragraph(f):
‘(g) any annuity where the whole or part of the consideration for the grant of the annuity consisted of assets which, at the time of the application of the said assets for the purchase of the annuity, were PRSA assets, within the meaning of Chapter 2A of this Part.',
(e) in part 42, by the substitution, in subparagraph (ii) of paragraph (g) (inserted by the Finance Act, 2001) of section 986(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 paragraph 9:
‘Declaration of PRSA
Administrator9A. The declaration referred to in section 739D(6)(i) is a declaration in writing to the investment undertaking which–
(a) is made by a PRSA administrator (in this para graph referred to as the “declarer”) in respect of units which are assets in a PRSA,
(b) is signed by the declarer,
(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
(d) declares that, at the time when the declaration is made, the units in respect of which the declaration is made–
(i) are assets of a PRSA, and
(ii) are managed by the declarer for the individual who is beneficially entitled to the units,
(e) contains the name, address and tax reference number of the individual referred to in subparagraph (d),
(f) contains an undertaking by the declarer that if the units cease to be assets of the PRSA, including a case where the units are transferred to another PRSA, the declarer will notify the investment undertaking accordingly, and
(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 1A of Part 27.'.”.
This amendment relates to the taxation of PRSAs. It amends the Taxes Consolidation Act, 1997, to provide for various tax reliefs and arrangements for PRSAs. A four page summary of these proposals was made available to Senators before Committee Stage. The nature of tax legislation means that the specific legal provisions in this amendment run to many pages. It would be most useful, therefore, for me to highlight its main features.
Contributions paid into a PRSA will benefit from tax relief at the individual's marginal income tax rate. As with most tax reliefs, there is a limit on this relief. The maximum annual taxable deductible contributions are based on a percentage of the individual's earnings. The allowable percentages that arise with age are as follows: under 30, 15%; 30-39, 25%; and over 40, 30%. The 30% limit will apply, irrespective of age, to certain other categories of persons who typically retire earlier than usual. An earnings cap of €254,000 will apply also to PRSAs as in the case of retirement annuity contracts, for the purpose of tax relief.
Contributions paid in any year in excess of the maximum tax deductible contribution may be carried forward and claimed in future years, subject to the annual limit for those years. Similarly, contributions paid while out of the workforce may be carried forward and claimed against future earnings on return to paid employment, subject to annual limits. The limits apply to the total contributions made by the employee and employer where the employee is not a member of an occupational pensions scheme. For example, where an employee aged 29 contributes 5% of his or her earnings to a PRSA, the employer may contribute a further 10%, making a total of 15% on aggregate.
Employer PRSA contributions on behalf of employees will be fully deductible for tax purposes. Contributions to a retirement annuity contract and a PRSA will be aggregated when calculating the maximum tax relief. For example, a person aged 45 who gets tax relief on 25% of their earnings on contributions to a RAC may contribute an extra 5% to PRSAs, making up 30% tax relief on aggregate. Employees in an occupational pension scheme may use a PRSA as an AVC vehicle. In other words, additional voluntary contributions may be made to a PRSA. The age limits applicable to total employee contributions to an occupational pensions scheme and the PRSA/AVC are as follows: under 30, 15% of earnings; 30-39, 20%; 40-49, 25%; and over 50, 30%. Benefits can usually be provided at age 60, subject to the same early retirement rules that exist at present for the self-employed and employees, respectively.
The options available on retirement are similar to the options introduced for RAC holders and certain other persons in the Finance Act, 1999. A PRSA holder, therefore, may take 25% of the fund on retirement as a tax free lump sum and, subject to the existing rules, may invest the balance in an approved retirement fund, subject to a minimum investment in an approved minimum retirement fund, withdraw the balance in cash subject to a minimum investment in an AMRF or invest the balance in an annuity. If a contributor dies before retirement, the PRSA fund may pass in its entirety to the estate of the deceased person, free of income tax. Inheritance tax will apply, however, according to the usual rules. If a contributor dies after benefits have commenced, the taxation rules for the PRSA fund will be similar to taxation rules for ARFs on death. Transfers from a RAC to a PRSA will be allowed. Transfers from an occupational pension scheme to a PRSA will be allowed where the person was a member of the scheme for less than 15 years.
As the Minister indicated, this is an extremely long amendment which proposes a new part of the Bill. I have two questions about the amendment, which I support. The reliefs available under the new section 787E will be 5% higher than those currently available in the Fin ance Bill. Why is this the case? Is there a danger that this amendment will mislead consumers?
My other question relates to the provision in this amendment that will mean that people cannot transfer after 15 years. Why is this so? Is it not possible to introduce greater flexibility? Is this amendment intended merely as an initial provision? Will it be reviewed and, if so, who will review it? I presume it is intended to be flexible.
I thank the Senator for his queries. The limit of 15 years in relation to the transfer of an occupational pension scheme is intended to restrict the large-scale transfer of schemes to PRSAs. I am trying to prevent a mass movement of those with a substantial occupational pensions scheme to PRSAs. The amendment does not intend such mass transfer, which would be an undesirable outcome. The Department of Finance and my Department agreed that the 15 year limit would be reviewed by the Department of Finance in the light of experience on an annual basis.
The PRSA contribution limits are more generous than the existing limits for RACs. A decision was purposely made to encourage greater PRSA uptake. It could be argued that this complicates the overall tax position, which may be true, but it should be remembered that PRSAs are primarily intended to increase pensions provisions for those who do not have enough cover.
Amendment agreed to.
I move amendment No. 68:
In page 45, line 13, to delete "reference." and substitute "reference or, if in his sole and absolute discretion he believes that special circumstances, of which he is the sole judge, warrant examination of a complaint prior to those prescribed in (4)(a)(i) and (ii) above.”.
We covered this matter at some length on a previous day. It relates to the ombudsman. Everybody welcomed the fact that there would be an ombudsman to provide confidence to people and ensure they get a fair hearing if they have a grievance. I was pleased the last day that one of the amendments increased the time limit from three to six years.
I have a specific case which I made on Committee Stage in the context of a general point. If there is a genuine grievance out there it can cause enormous suffering and trauma. All of us in politics come across people who have the latter part of their lives destroyed by their sense of impotence in a situation where they feel they cannot get a fair hearing. In many cases all they want is a hearing, they want their say. The six year limit is very generous and I praise the Minister for making that change.
However, it may well be that from time to time this period may be exceeded and a person may want the ombudsman to adjudicate on whether he or she has a case to be heard. The amendment I propose is very restrictive. It proposes that if the ombudsman, in his sole and absolute discretion, believes that special circumstances exist it can warrant examination of a complaint prior to those prescribed under the six year rule. This is something which would work in the interests of everybody.
Politicians often feel very strongly that an individual has a genuine complaint and they feel a sense of humanity for the suffering and trauma of that person. At least now the ombudsman can say "Yes, there is a prima facie case which should be examined.” or “No, there is no real case there.” At least there is an element of finality to the process. The individual may not be happy but a line can be drawn under the case rather than have it fester and blight not just the last years of the individual's life but also the lives of his or her family.
In framing the amendment I was conscious of not opening floodgates. I want to put the ball very much in the court of the ombudsman, who would be the sole judge of what could happen. I ask the Minister to look sympathetically at this. I know that the Department of Finance will not like it – the Department of Finance does not like ombudsmen anyway. There are times when the judgment of politicians exceeds the collective wisdom of those in Merrion Street.
I am fully persuaded as always by Senator Manning's convincing argument, particularly with regard to the Department of Finance not liking this. That in itself merits my seconding the amendment.
I listened very carefully to what Senator Manning in particular said on Committee Stage and my officials have had some discussions with the Senator on the particular issue he raised. They had some contact with the people involved. When this Bill was brought forward originally, three years was the look-back period. We got the consent of the Government and the Department of Finance to change this to six years as a result of what was said in this House on Second Stage as well as other representations made to us and our own view that six years would be better. This is very significant.
I cannot accept the amendment but I point to subsection (5) which states:
The Pensions Ombudsman may investigate a complaint or dispute under this section notwithstanding that the act giving rise to the complaint or dispute was done prior to the establishment day if, and only if, the complaint or reference is made to the Pensions Ombudsman within the period specified in subsection (4)(a).
There has been discussion with my Department and others regarding what that actually means. We believe it would be up to the ombudsman to intervene in that in his own way. It would be possible for the ombudsman to interpret the nature of the act giving rise to the kicking in of the legislation.
When the Minister says "act" he means act with a small a?
Yes, the action, that is what it is. This comes up from time to time in relation to pension schemes when establishing whether it is the date of the establishment or the date that something happened that caused difficulties. Leaving the section as it is would cater for what the Senator is seeking and would give the Pensions Ombudsman some flexibility. If we were to make it too open-ended the ombudsman would be under horrendous pressure and would be snowed under with look-backs well beyond the six year period. By leaving it as it is the Pensions Ombudsman would have some discretion in this regard. It may be something that might be challenged, I fully accept that. Perhaps the trustees of a scheme might not agree with it being reviewed. However, it is preferable to leave it as it is. The Senator's amendment could cause some difficulty in that the Pensions Ombudsman would not be able to look at new cases arising after the date the legislation is passed.
I know the Minister has worked very hard on this but there are two problems with his reply. First, there is a vagueness about the terms "act" or "action." In a case where a person receives his pension payment and is dissatisfied with the sum he gets, believing he is entitled to a larger sum, does that action then entitle him to bring a challenge to the ombudsman about what has been proposed?
Second, the whole point of the ombudsman is that a person has access at low cost or free, it is confidential and attempts are made to resolve problems without all the expense of recourse to the legal process. Take the case of the person I have in mind who decides to go to the ombudsman and says: "This is my case, will you have a look at it, have I got a prime facie case or do you know anything about it?” However, the trustees, who may feel they have a case as well – there are two sides to every story – are the big guns, the individual is the small gun. The cost of taking a case for somebody like that can be so crippling that he may conclude at the end of the day that it is not worth it and give up.
Those are my two concerns about what the Minister has said. At the end of the day, everything will depend on the attitude of the ombudsman. Under my proposal, the ombudsman could still refuse to make an exception for somebody if he did not believe that they had a case. The Minister has suggested that the Ombudsman for Pensions may very well take an expansive view and in the past the general Ombudsman has acted in a way that many members of the Civil Service would not have liked him to. A great deal depends on the personality of the ombudsman concerned, making it a lottery situation.
I will not push this to a vote because it would be a foregone conclusion. I think I have made the case and I ask the Minister to revisit this issue in the Dáil when he has further reflected on it. However, I suspect that what I am proposing would have the support of all sides of the House.
Amendment, by leave, withdrawn.
Government amendment No. 69:
In page 50, to delete lines 24 to 27.
This is a technical amendment arising from investigations made by the Ombudsman. On the advice of the Attorney General's office, this amendment will delete subsection (4) of the Bill. It deals with the power of the Pensions Ombudsman to determine whether any person can be legally represented in the Ombudsman's Act, 1980. The view of the Attorney General's office is that, as the determination of the Pensions Ombudsman is binding, unlike that of the general Ombudsman, the Pensions Ombudsman cannot have discretion on legal representation.
Amendment agreed to.
Government amendment No. 70:
In page 54, line 44, to delete "Pension" and substitute "Pensions".
This is a technical amendment to correct a typographical error.
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 71, 92 and 110 may be taken together by agreement.
Government amendment No. 71:
In page 56, between lines 22 and 23, to insert the following:
"(e) by insertion after the definition of ‘member' of the following definition:
‘Member State' means a Member State of the European Communities;".
These amendments will implement the EU Directive 98/49 EC, known as the Mobility Directive. The aim of this directive is to protect the rights of members of supplementary pensions schemes who move from one member state to another. Such people receive the same treatment as those who do not move states. Pension law in Ireland is already in substantial compliance with this directive and only marginal amendments are required.
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 72 and 73 may be taken together by agreement.
Government amendment No. 72:
In page 56, to delete lines 37 and 38 and substitute the following:
"is to be applied in the manner referred to in the said definition, or both, as the case may require;".
Section 5 of the Bill inserts new definitions in connection with new provisions of the Bill.
These amendments make technical changes to the definition of a sectionalised scheme as it was pointed out to my Department that there was an error in the definition as drafted. A sectionalised scheme is an umbrella scheme which provides pension arrangements in a cost effective and efficient manner to a large number of employers, in respect of their employees.
Amendment agreed to.
Government amendment No. 73:
In page 56, to delete lines 41 to 50 and substitute the following:
"(a) the persons to whom the scheme applies are divided into distinct classes, and
(b) with respect to each such class, save in accordance with such conditions as may be prescribed, a distinct part of the resources of the scheme
(i) is required to be applied in the provision of benefits for and in respect of the persons in that class, and
(ii) cannot be applied in the provision of benefits for and in respect of the persons in any other class, other than a class with no members in reckonable service.".
Amendment agreed to.
Government amendment No. 74:
In page 57, between lines 19 and 20, to insert the following:
"Further amendment of section 3 of Principal Act.
7.–(1) The following subsection is substituted for subsection (5) of section 3 of the Principal Act:
‘(5) Proceedings for a summary offence–
(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 by the Pensions Ombudsman.'.
(2) Subsection (6) of section 3 of the Principal Act is amended–
(a) by the substitution for ‘Board' of ‘Board or Pensions Ombudsman, as the case my be,', and
(b) by the substitution for ‘Board's' of ‘Board's or Pensions Ombudsman's'.”.
The purpose of this amendment is to allow the Pensions Ombudsman to bring proceedings for a summary offence under the Pensions Act in relation to his jurisdiction.
What is the distinction between the role of the Pensions Board and the Pensions Ombudsman in taking prosecutions?
Under the legislation, it was decided to keep the functions of the Pensions Board separate from those of the Pensions Ombudsman. The ombudsman will be able to initiate prosecutions of his volition. There was a gap in what we had proposed in that the ombudsman was not in a position to take summary offences, which are minor offences, in the District Court. The legislation, as drafted, will allow him to do this.
Amendment agreed to.
Government amendment No. 75:
In page 58, to delete lines 1 to 20 and substitute the following:
8.–Section 5 of the Principal Act is amended–
(a) by the insertion after subsection (3) of the following subsections:
"(3A) Without prejudice to any specific provision of this Act, any regulations may provide–
(a) for any of the provisions of this Act, or any of those regulations, to apply to the different sections of a sectionalised scheme as though each section were a separate scheme for any or all of the purposes of this Act, and
(b) if provision as aforesaid is made in relation to a provision of this Act, that the provision so applied shall have effect subject to specified modifications, being modifications the making of which the Minister considers necessary or expedient in consequence of the application of the provision in that manner and which, in every case, conform to the purposes, principles and spirit of this Act.
(3B) For the avoidance of doubt, regulations referred to in subsection (3A) may provide for any or all of the provisions of this Act or any or all of those regulations, to apply both to the different sections of the scheme con cerned as though each were a separate scheme and to the scheme as a whole.".
and
(b) by the insertion after subsection (4) of the following subsection:
‘The Minister may, after consultation with the Minister for Enterprise, Trade and Employment and with the consent of the Minister for Finance, make regulations prescribing any matter or thing in relation to a scheme or PRSA for the purpose of enabling any provision of the Protection of Employees (Part-Time Work) Act 2001 to have full effect.' ".
Section 8 of the Bill allows for regulations to be made in relation to sectionalised schemes, and allows such schemes to be regulated either as single schemes or as group schemes.
The first part of this amendment is related to the previous group of amendments on sectionalised schemes. The second part of the amendment, the insertion of a new subsection into section 5 of the Pensions Act, 2002, will give the Minister powers, with the consent of the Minister for Finance and the approval of the Minister for Enterprise, Trade and Employment, to make regulations in relation to pension matters covered by the Protection of Employees (Part-Time Work) Act, 2001, (No. 45). The intention would be to enforce these regulations as soon as possible after the enactment of the Bill, following consultation with the appropriate Departments and the Pensions Board.
Amendment agreed to.
Government amendment No. 76:
In page 58, between lines 20 and 21, to insert the following:
"Amendment of section 5B of Principal Act.
Section 5B of the Principal Act is amended by the insertion after ‘certain categories of external schemes' of ‘or any scheme provided under the Agreement between the Government of Ireland and Government of the United Kingdom of Great Britain and Northern Ireland establishing Implementation Bodies done at Dublin on the 8th day of March 1999'.".
Section 5 of the principal Act allows the Minister to make regulations, where appropriate.
The purpose of this amendment is to give the Minister powers to make regulations to exempt pension schemes set up for the staff of the North-South bodies for any or all of the requirements of the Pension Acts. This is because it is envis aged that the schemes will be administered in Northern Ireland.
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 77 to 86, inclusive, and amendment No. 114 may be taken together by agreement.
Government amendment No. 77:
In page 58, line 37, after "providers", to insert "as such providers".
These are technical amendments arising from changes to PRSA providers. The amendments are to the principal Act as it relates to the Pensions Board role in monitoring supervision and the issue of guidance notes for pensions generally. I wish to clarify that the requirements only extend PRSA providers when acting as PRSA providers. Section 11 extends the provision covering investigations by authorised persons to PRSAs. These amendments arise as a consequence of the changes that I have been making in relation to the authorisation of PRSA providers. The amendments will limit the scope of the information supplied by the officers and employees of the PRSA to the board to information relating to PRSA activities of the PRSA provider. In addition, it will allow the board to require an employer to furnish it with such information as it is obliged to give under the obligations Section 1(2)(i), which covers the obligation of an employer to provide access to PRSA and to pay remit PRSA contributions. The effect of this is that the board will have the power to investigate an employer with regard to non-compliance with that section.
Amendment agreed to.
Government amendment No. 78:
In page 59, to delete lines 2 and 3 and substitute the following:
"and responsibilities of PRSA providers in relation to PRSA products and with respect to such products."
Amendment agreed to.
Government amendment No. 79:
In page 59, to delete lines 13 and 14 and substitute the following:
"the state of a PRSA product';".
Amendment agreed to.
Government amendment No. 80:
In page 59, between lines 14 and 15, to insert the following:
"(b) by the insertion of after ‘a scheme' in subsection (3A) of ‘or a PRSA product'."
Amendment agreed to.
Government amendment No. 81:
In page 59, line 15, to delete "(3A),".
Amendment agreed to.
Government amendment No. 82:
In page 59, to delete lines 17 and 18 and substitute the following:
"(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 as such a provider';
"(f) by the insertion after ‘the scheme' in subsection (6) and (7) of ‘or the PRSA provider';”.
Amendment agreed to.
Government amendment No. 83:
In page 59, line 24, to delete "and".
Amendment agreed to.
Government amendment No. 84:
In page 59, to delete line 26 and substitute the following:
"employees of the PRSA provider in respect of its PRSA activities, and".
Amendment agreed to.
Government amendment No. 85:
In page 59, between lines 26 and 27 to insert the following:
"(c) an employer, require him in relation to his obligations under section 121,”.
Amendment agreed to.
Government amendment No. 86:
In page 59, to delete lines 34 and 35 and substitute the following:
"(i) by the insertion after ‘the employer' in subsection (4) of ‘or the PRSA provider in relation to its activities as such a provider'; and
(j) by the insertion after ‘the employer' in subsection (5) of ‘or the PRSA provider' ”.
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 87 to 89, inclusive, 91, 94 to 102, inclusive, 112 and 121 form a composite proposal and may be taken together.
Government amendment No. 87:
In page 60, lines 31 to 32, to delete "1 January 2002" and substitute "1 June 2002".
These amendments propose to change the reference in the Bill from "1 January 2002" to "1 June 2002", where appropriate. This will result in an immediate benefit to people regarding these provisions who leave service after this date. I am aware from calls to the Department that a significant number of people will benefit from these proposals and await their implementation.
Is the Minister happy that staff are in place to ensure that this date can be met?
Yes. Some time ago the Department of Finance provided for a sizeable increase in the Pensions Board's staff complement so there will be plenty of staff to implement this measure. Staff have been, and are being, trained regarding the provisions of the Bill before it is passed.
I should have asked the Minister earlier when he expects the office of the ombudsman to be up and running.
As soon as possible after the passing of the Bill. That is the intention.
I have the ideal candidate whose name I will give to the Minister later.
Amendment agreed to.
Government amendment No. 88:
In page 60, line 36, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 89:
In page 62 to delete lines 32 to 42 and in page 63 to delete lines 1 to 9 and substitute the following:
" "(1) In this section and Part B of the Second Schedule ‘revaluation year' means a year beginning on or after 1 January 1996.".
and
(b) in subsection (2) by the substitution for paragraph 1 or 3 or both of any or all of paragraphs 2, 3 and 4.”.
Amendment agreed to.
Government amendment No. 90:
In page 63, line 33, to delete "value" and substitute "payment".
This amendment will delete "transfer value" and substitute "transfer payment". This change is necessary because the term "transfer value" is not defined in the Bill and was used in error.
Amendment agreed to.
Government amendment No. 91:
In page 64, line 36, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 92:
In page 65, to delete lines 36 to 41 and substitute the following:
"23. The following section is substituted for section 39 of the Principal Act:
39.–(1) Nothing in the other provisions of this Part or in the Second Schedule shall be construed as precluding a scheme from providing benefits, in lieu of preserved benefit or minimum contributory retirement benefit, on a higher scale, or payable at any earlier, or, at the request of the member of the scheme at any later, time or otherwise more favourably than is provided for under this Part:
Provided that–
(a) such benefits are of an actuarial value that is equivalent to or greater than that of preserved benefit,
(b) on the death of a member before any such benefit commences to be payable the amount thereof shall not be less than the amount that would, but for this section have been payable by virtue of section 29(4) or 30(3), as appropriate,
(c) a member who is entitled to preserved benefit under this Part shall not be entitled to receive a refund of any contributions paid to the scheme in contravention of section 32,
(d) such benefits shall be provided to the same extent to or in respect of members whose service in relevant employment terminates as a consequence of their moving to another Member State as to or in respect of members whose service in relevant employment terminates for any other reason.
(2) Where a scheme provides benefits to or in respect of a member whose service in relevant employment terminates but who is not entitled to a preserved benefit under this Part, such benefits shall, be provided to the same extent to or in respect of members whose service in relevant employment terminates as a consequence of their moving to another Member State as to or in respect of members whose service in relevant employment terminates for any other reason.'.".
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 93 and 103 to 106, inclusive, are related and may be taken together.
Government amendment No. 93:
In page 66, to delete lines 1 to 10 and substitute the following:
24.–Section 41 of the Principal Act is amended:
(a) by the substitution in paragraph (b) of subsection (1) of ‘1993, or' for ‘1993.';
(b) by the insertion after paragraph (b) of subsection (1) of the following paragraph:
‘(c) to such extent as may be prescribed, a scheme the winding up of which has commenced.'; and
(c) by the substitution for subsection (2) of the following subsection:
‘(2) Notwithstanding subsection (1)–
(a) subsections (1) and (2) of section 48 shall apply to any scheme other than a defined contribution scheme, and
(b) subsections (3) and (4) of section 48 shall apply to every scheme.'.”.
Section 24 provides for benefits from defined contribution schemes and defined benefit schemes to be secured following the winding up of those schemes by transfer payments, regardless of the terms of the scheme concerned. Amendment No. 93 will allow the Minister to make regulations which permit the funding standard to be disapplied in the case of a scheme being wound up as it would serve no useful purpose in such circumstances.
Section 34 requires additional information in the annual report from the actuary regarding the funding position of the scheme. Amendment No. 103 will exempt wound up schemes from the requirement to provide such an annual report.
Section 35 requires actuarial valuations and audited accounts to be produced. Amendment No. 106 will exempt wound up schemes from the requirement to produce actuarial valuations and audited accounts.
Amendment agreed to.
Government amendment No. 94:
In page 66, line 14, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 95:
In page 66, line 16, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 96:
In page 68, lines 6 and 7, to delete "1 January 2002" and substitute "1 June 2002".
Amendment agreed to.
Government amendment No. 97:
In page 68, line 14, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 98:
In page 68, line 27, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 99:
In page 68, line 37, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 100:
In page 68, to delete line 42 and substitute the following:
"1 June 2012 and on 1 June 2002".
Amendment agreed to.
Government amendment No. 101:
In page 69, line 17, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 102:
In page 69, line 38, to delete "January" and substitute "June".
Amendment agreed to.
Government amendment No. 103:
In page 72, to delete lines 6 and 7 and substitute the following:
34.–Section 55 of the Principal Act is amended:
(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 the following paragraph:
‘(c) to such extent as may be prescribed, a scheme the winding up of which has commenced.'; and
(c) by the insertion after subsection (2) of the following subsections–”.
Amendment agreed to.
Government amendment No. 104:
In page 73, line 9, to delete "and".
Amendment agreed to.
Government amendment No. 105:
In page 73, line 14, to delete "provider'." and to substitute "provider'; and".
Amendment agreed to.
Government amendment No. 106:
In page 73, between lines 14 and 15 to insert the following:
"(c) in subsection (6):
(i) by the substitution in paragraph (a)(iii) of 1997, or' for 1997.';
(ii) by the insertion after paragraph (a)(iii) of the following:
‘(iv) to such extent as may be prescribed, a scheme the winding up of which has commenced.';
(iii) by the substitution in paragraph (b)(iv) of ‘1997, or' for ‘1997.'; and
(iv) by the insertion after paragraph (b)(iv) of the following:
‘(v) to such extent as may be prescribed, a scheme the winding up of which has commenced.' ".
Amendment agreed to.
An Leas-Chathaoirleach
Amendments Nos. 107 and 109 are related and may be taken together.
I move amendment No. 107:
In page 75, line 21, after "made." to insert the following:
In the case of the administrator the sum must be remitted to the trustees or management immediately and not be held for an unreasonable time."
The two amendments are grouped. I am not challenging that decision, but where are such decisions made? I have been a Member of the House for some time, but I have never asked how the grouping of amendments is decided.
An Leas-Chathaoirleach
Where amendments are related it has been the practice to group them. However, it is open to the Senator to ask that his amendment be discussed separately. Does the Senator wish to discuss his amendment separately?
Yes, please. I am not trying to be difficult about this issue and I do not mind if the Minister replies to the amendments together, which I gather he intends to do. However, there is a case to be made that these amendments are not so related that they should be taken together. There may be a case for taking them separately.
An Leas-Chathaoirleach
That is a matter of opinion which may or may not be correct. However, it is up to the Senator and we will take the amendments separately. I call the Senator on amendment No. 107.
Thank you, that is fine. As the Minister will remember from Committee Stage, the purpose of this amendment is to ensure that moneys which are deducted by an employer for the sake of pensions are not unreasonably delayed in the hands of the administrator. This issue was brought to my attention by a group of pension funds in particular which felt that the administrator kept large sums of money in a drawer for a long period of time and there was a question as to who was the beneficiary.
This section appears to place the onus on the trustees and the management to remit everything within 21 days, but there does not appear to be anything to prevent the administrator from holding on to this money for a long time. I think the Minister will say that amendment No. 109 will allow for the transfer to the trustees and that may or may not be an adequate response. If the Minister is transferring it under amendment No. 109 so that the onus is on the trustees to put pressure on the administrator, what measures are open to the trustees to enforce this measure on the administrator? There do not appear to be any such measures. In other words, the administrator can prolong the holding of this money and the trustees cannot enforce the measure without difficulty. It would be better to leave this to the administrator with an obligation to do so.
What does the phrase "undue delay" mean in the context of amendment No. 109? This seems a vague and unacceptable term. If the amendment proposed that the administrator was not allowed to hold the money for longer than a specified period of time, that would be fine. However, the amendment suggests that there will be a tussle between the trustees, who have no statutory powers, and the administrators who could hold on to the money. I know of a case where this happened and that was indefensible. I am open to be convinced, but I am not sure that Government amendment No. 109 answers the point I made on Committee Stage.
I would like also to speak from the Government side of the House in support of the amendment. We are strongly in support of this amendment for the reasons Senator Ross gave, and I am happy to have had my name added and put forward as a seconder.
It seems that this is analogous to cases where people make investments. I do not often make investments but, on the advice of a dear friend, I made an investment in Greencore some years ago. I discovered that it is extremely difficult to extract money from financial agencies. They like to hold on to it because they get interest on it, and that is a pity. The individual investor should be cherished, and I am not sure that under this legislation as it exists without Senator Ross's valuable amendment the individual investor would be protected to the extent that he or she should be.
Senator Ross is perfectly right in saying that the sum should be remitted to the trustees immediately and not held for an unreasonable time. Going against this amendment would mean the sum could be held for an unreasonable time. I am quite sure the Minister wishes to be reasonable.
An Leas-Chathaoirleach
Is the Senator supporting Senator Ross's amendment or the Government amendment?
I am strongly supporting Senator Ross's amendment. I would go further and wish he were Minister for Finance – I say that from this, the Opposition, side of the House.
The Minister for Finance would love that. The trustees are responsible for the operation of pension schemes. I have some sympathy with what the two Senators have said. On the one hand, I am strongly advised that the trustees rather than the Pensions Board should have the power to force administrators to pay up; they would have a contract with them and would, therefore, be able to sue. On the other hand, I am somewhat persuaded by what Senator Ross has said both on this and on Committee Stage. The Pensions Board is of the view that the power should reside with the trustees. However, we will re-examine this between now and when it is introduced in the Dáil with a view to coming up with a better way of ensuring that there will be no undue delay in remitting money held by administrators.
I fully accept what the Senators have said. The focus should be on protecting the consumer. I will undertake to insert something more definite in the Dáil if that is possible, and if the Senators withdraw their amendments on that basis, I will also withdraw mine.
I am not inclined to push this to a vote in the circumstances because I would like to reciprocate the Minister's good will. I listened carefully to what the Minister said. It was short of a commitment, as he would know. I will withdraw my amendment if he gives a commitment to meet my requirements in the Dáil, in other words, if he agrees to introduce an amendment in the Dáil which will meet the criteria I have set down.
I would have to discuss that with my officials and with the Pensions Board. I would like something better than my amendment. I will at least move my amendment. However, I would like to table a stronger amendment imposing a much greater onus on administrators to pass money over. I come from a profession that has been accused over the years of retaining moneys on behalf of people for longer than necessary. Perhaps we can come up with a mechanism to put the onus on administrators to pay up. I am advised that it is up to the trustees to pursue the administrators. However, that is too weak and I would prefer a stronger provision.
I accept that this Minister is not one who gets pushed around by civil servants, and the proof of the pudding will be in the eating. I will withdraw my amendment and look forward with great anticipation to what happens in the Dáil.
I will do likewise in relation to amendment No. 109.
Amendment, by leave, withdrawn.
Government amendment No. 108:
In page 75, to delete lines 46 and 47 and substitute the following:
"shall give or cause to be given to the employee concerned and to the trustees, the administrator or the manager a statement in writing not less frequently than once".
Section 38 places a statutory requirement on employers to remit employee pension contributions within a specific time period, within 21 days of the end of the month in which the deductions were made, and to give a monthly statement of the deductions to the employee and trustees. Where an employer remits or pays any sums to the trustees, administrator or manager of a scheme on behalf of an employee, this amendment will require the employer to give a monthly written statement not only to the employee but also to the trustees and the administrator or manager.
Amendment agreed to.
Government amendment No. 109:
In page 76, line 29, after "scheme", to insert "without undue delay".
Amendment No. 109 would be better than nothing. I hope we do not go back to the Dáil and find nothing is introduced.
I undertake to at least include amendment No. 109.
Or better.
Amendment, by leave, withdrawn.
Government amendment No. 110:
In page 76, line 33, after "due", to insert ", whether in the State or in any other Member State, net of any taxes and transaction charges which may be applicable".
Amendment agreed to.
Government amendment No. 111:
In page 77, line 34, to delete "(1)".
This is a technical amendment to delete the reference to subsection (1), which is not required, as there is only one section.
Amendment agreed to.
Government amendment No. 112:
In page 77, to delete lines 35 and 36 and substitute the following:
"in relation to a scheme which is wound up on or after the commencement of section 40 of the Pensions (Amendment) Act, 2002,–".
Amendment agreed to.
Government amendment No. 113:
In page 80, to delete lines 30 and 31 and substitute the following:
"would cause the scheme or any part of it to become a defined contribution scheme,".
Section 40 provides for changes in scheme rules and the exercise of discretionary power to augment members' benefits to be null and void in certain circumstances. This is a technical amendment which will extend the scope of this provision so that it will cover scenarios where any such act would cause any part of the scheme to become a defined contribution scheme.
Amendment agreed to.
Government amendment No. 114:
In page 82, to delete lines 15 to 18 and substitute the following:
"PRSA provider has carried on activities in relation to PRSA products referred to in Part X otherwise than in accordance with that Part, that person".
Amendment agreed to.
An Leas-Chathaoirleach
We now come to Government amendment No. 115. Amendments Nos. 116 to 120, inclusive, are related. Is it agreed, therefore, to discuss amendments Nos. 115 to 120, inclusive, together? Agreed.
Government amendment No. 115:
In page 82, line 30, to delete "immediately" and substitute ", as soon as practicable,".
Section 44 provides for the amendment of the compulsory and voluntary reporting requirements on foot of the introduction of PRSAs.
Amendment No. 115 will mean that the relevant person shall report the matter referred to in this section to the board in writing as soon as possible rather than immediately. It is considered impracticable to expect a person to make such a report immediately. Amendment No. 116 will widen the scope of the provision to include persons other than those just operating a PRSA. Amendments Nos. 117 and 118 will mean that a breach of the new subsections of section 83 of the principal Act will be specifically covered by this subsection. Amendment No. 119 will delete the reference to subsection (1) in both sections 84 and 85 of the principal Act as the wider reference to the sections is now appropriate. Amendment No. 120 is a technical amendment to replace a reference to "subclauses" with a reference to "clauses".
Amendment agreed to.
Government amendment No. 116:
In page 83, line 3, to delete "operated by him" and substitute "to which he is a relevant person".
Amendment agreed to.
Government amendment No. 117:
In page 83, line 16, to delete "and".
Amendment agreed to.
Government amendment No. 118:
In page 83, between lines 16 and 17, to insert the following:
"(c) by the substitution in paragraphs (a) and (b) of subsection (3) of ‘subsection (1), (2A), (2B), (2C), (2D) or (2F)' for ‘subsection (1)'; and".
Amendment agreed to.
Government amendment No. 119:
In page 83, to delete lines 19 to 22 and substitute the following:
45.–Section 84 of the Principal Act is amended by–
(a) the insertion after ‘conduct of a scheme' of ‘or the state of a PRSA'; and
(b) the substitution of ‘section 83' for ‘section 83(1)'.”.
46.–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 of a PRSA'.”.
Amendment agreed to.
Government amendment No. 120:
In page 83, line 27, to delete "subclauses" and substitute "clauses".
Amendment agreed to.
Government amendment No. 121:
In page 90, line 28, to delete "January" and substitute "June".
Amendment agreed to.
An Leas-Chathaoirleach
Amendment No. 122 is a Government amendment. Amendment No. 123 is related. Is it agreed to discuss amendments Nos. 122 and 123 together? Agreed.
Government amendment No. 122:
In page 90, line 43, to delete "and".
This amendment proposes to delete the word "and" where it is incorrectly positioned in the Bill and to reposition it.
Amendment agreed to.
Government amendment No. 123:
In page 90, between lines 43 and 44, to insert "and".
Amendment agreed to.
Bill, as amended, received for final consideration.
Question proposed: "That the Bill do now pass."
I compliment the Minister on this important and highly complicated Bill. The sooner it can be implemented the better. The Minister will be aware that Senator O'Toole, Senator Ross and I were unhappy at the way the Bill was processed through the various Stages. We were unhappy at the large number of new sections that appeared on Committee Stage and the large number of amendments on Report Stage.
The Minister and his officials rightly consulted widely with the industry. Apart from the document I mentioned earlier, which I will pass on to the Minister's officials, I am not aware of any other group that was not fully consulted. Their expertise went into the making of the Bill. However, in the process this House was, at times, sidelined. Information came late and we did not have the time required to consider all aspects of the legislation. The lesson to be learned from this experience is that Bills like this should be referred to a House committee where they could be examined in more informal surroundings with access by the Members to expertise.
I express my appreciation for the help I received from the officials in the Department, especially from Ms Vaughan. She went out of her way to be helpful and was painstaking in her explanations to me of the various parts of the Bill. I thank the Pensions Board and Revenue officials, who were helpful in explaining different sections of the Bill at the briefing yesterday.
I compliment the Minister on getting this important legislation through the House. In the nature of things, it may have less searching scrutiny in the Lower House. In any event, I hope it will soon be on the Statute Book. I suspect that one or two sections of the Bill may ultimately be scrutinised out of here. That is in the nature of most legislation that is passed and there is probably little we did today that will change that.
Between now and the Bill going to the Dáil, I urge the Minister to look again at the ombudsman question. I saw no point in pressing the issue and I know that, instinctively, the Minister is more at one with me on this aspect than with his colleagues on Merrion Street. He showed openness in dealing with Senator Ross's amendment. I congratulate him on getting the Bill through the House.
This is a very difficult and technical Bill. Many of the amendments, from both Government and Opposition, are almost impossible to decode unless they are considered in great detail. The Minister's grasp of the Bill is superb. It is an example of the benefit of having a competent Minister in an area of great difficulty and intricacy. He had a much better grasp of the legislation than the rest of us. Sometimes Ministers have come to the House without a proper grasp of their legislation but this Minister was not one of them. To that extent I compliment him. He was well briefed and took the trouble to respond to the points raised. It did not matter that we did not agree on all of them.
It is regrettable that the wider pensions industry has not been addressed in this Bill, which is mainly concerned with new developments rather than the industry itself. I plead with the Minister to look at the industry. Pensions are something people understand they have but do not understand anything about, and this Bill will not educate them. People contribute to pension funds but then ignore them for 30 or 40 years. For some reason they do not, nor do they want to understand what is happening to their money. The Minister said as much in reply to a point I raised.
There is a very paternalistic attitude to pensions from those who organise them. This is a problem the Minister may consider because serious issues are involved. There is the issue of where the money goes and whether it is well invested. I submit it is not well invested and all the evidence is on my side. There is the issue of what happens in the pensions industry, what people in the industry charge and why they charge and are paid so much for doing so little and being so unsuccessful.
There is also the issue of transparency, where those of us paying into pension funds are putting money into funds we know nothing of and are not told. We do not know what we are paying for, nor the charges we have to make. However, we know that some people are getting very rich out of the industry and they are not delivering. That will be the issue to be addressed in the next pensions Bill.
This is a very big and untransparent area. The Bill addresses certain issues and there is the Pensions Board, which is politically appointed. However, there is also a huge, almost invisible area that has not been explored, either by financial correspondents or the Government. It is a very self-satisfied, self-perpetuating industry. This should be explored much more deeply by Governments in future and I hope the next pensions Bill will deal with other areas of the industry and make it much more transparent to those who create it so that it becomes directed from the bottom and not the top.
I congratulate the Minster on his grasp of detail and for the way in which he has taken the Bill through the House. It is an example to many other Ministers who have not been so knowledgeable or acted so skilfully. I also thank him for being in attendance throughout rather than sending in a Minister of State.
I also thank the Minister for his attendance. He has been present for all social welfare legislation introduced to the House over the past five years. I agree with much of what Senator Ross said about the pensions industry.
In this Bill the Minister has begun the process whereby ordinary people can avail of pensions. The most important aspect of the legislation is that members of the public will have greater awareness of and control over their pensions, and that is to be welcomed. I thank the Minister's officials, the Pensions Board and the Revenue, who met us yesterday for a briefing. They have been very helpful.
I thank Senators for their forbearance when dealing with this Bill. The debate was not conducted in a way I, as a parliamentarian, would have wished and I apologise for that. Difficulties arose from the start of the process when we said we would be open to submissions and amendments. As the debate progressed we realised there could have been a better way to proceed and I apologise to the House and to Senators for bearing the brunt of what happened. However, we can take some pride in going to the Dáil with a cleaner Bill and hopefully we will have fewer technical amendments. Senators should recognise there were some key issues we had to deal with here.
We will look at some of the issues raised before going to the other House. I agree to a certain extent with some of the sentiments expressed by Senator Ross on the issue of pensions and transparency. There was a national pensions policy initiative on my desk when I became Minister and the issue of raising pension coverage in the general population came from that. That was the reason for bringing forward this Bill. Time will tell whether the Bill is successful when passed. It is subject to PPF reviews and renegotiations, as there are PPF commitments to ascertain whether this will ultimately be successful in increasing pension cover. I do not doubt we will be coming back more often with a pensions Bill than heretofore and perhaps on those occasions or at intervening times we may be in a position to deal with some of the other issues to which Senator Ross referred.
Regarding the kind of pension structure the legislation sets up, it will be more transparent and we will know more about charges and disclosure to people. People will be more aware of what they are getting or not getting for their investment.
It has obviously happened before that the Pensions Board appeared before Oireachtas committees and perhaps that should happen more often so we can look at the board's workings and powers. Going back to Senator Manning's point, it was probably preferable to leave this with a specialised committee, given the back-up available to people. However, there were time constraints. This was an agreed process – there was all-party agreement in both Houses on passing this before the dissolution of the Dáil – and it was best to get it passed.
I thank Senators for their remarks. I thank my officials, who were absolutely excellent as always, in particular the official who has been living with me for the past four and a half years in dealing with this. I thank her particularly for her efforts. They say behind every good man is a good woman and I assure the House I have excellent officials – there are more officials than those behind me. I also thank the Revenue and Pensions Board officials, who were available at all times of the day and night – I assure the House that meant well into the night at times. I also thank the Cathaoirleach and his officials. Having been a Whip in the Dáil I was very much aware of the difficulties for people in putting down amendments and I thank the Seanad staff for all they have done. It has not been unappreciated.
Question put and agreed to.
An Leas-Chathaoirleach
When is it proposed to sit again?
On Thursday next at 2.30 p.m.