Dáil Éireann Debate, Tuesday - 26 July 2022
1176. Deputy Ruairí Ó Murchú asked the Minister for Social Protection the reasons that legislation relating to one member pension schemes was changed on 1 July 2022; and if she will make a statement on the matter. [41879/22]
View answer1177. Deputy Ruairí Ó Murchú asked the Minister for Social Protection if she will consider allowing one member pension schemes with 20 members or less to be exempt from the new pension regulations which came into place on 1 July 2022; and if she will make a statement on the matter. [41881/22]
View answerI propose to take Questions Nos. 1176 and 1177 together.
At the outset, I can advise that Deputy that no legislative changes or new pension regulations were made or came into force on 1st July 2022 in relation to one member arrangements ('OMA') or pension schemes generally. I can also advise the Deputy that, as OMAs are established for one member only, such arrangements would not have up to 20 members.
Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (‘IORP II’) became effective from 13 January 2019, and sets out minimum standards for the management and supervision of pension schemes, with the objective of ensuring the soundness of occupational pensions and better protections for scheme members and beneficiaries across the European Union.
IORP II requirements were transposed into Irish law by way of the European Union (Occupational Pension Schemes) Regulations 2021 (S.I. No. 128 of 2021) which came into force on 22nd April 2021. The general principle followed in respect of the transposition of IORP II, in keeping with the Government’s Roadmap for Pensions Reform, is that the requirements of IORP II apply to all schemes and trust RACs, including one-member arrangements (‘OMAs’). This is in order to ensure that all members and beneficiaries are afforded equal protection irrespective of the size of the pension arrangement. It should be noted that the decision to apply the requirements of IORP II to all schemes and trust RACs was announced by the Government in 2019 and it was expected that trustees and insurance providers would have been preparing for compliance with these requirements in advance of transposition.
In the case of OMAs established on or after S.I. No. 182 of 2021 came into force on 22nd April 2021, such arrangements are required to meet all new IORP II related requirements set out under the 1990 Act, where applicable, from the date on which they were established. From a supervision perspective, the Pensions Authority, which is the regulator for pensions in Ireland, has outlined that it was applying a deadline of 1st July 2022 in respect of OMA’s compliance with those new requirements.
I hope this clarifies the position for the Deputy.
