Dáil Éireann Debate, Wednesday - 14 September 2022
367. Deputy Mary Butler asked the Minister for Social Protection if she will address the concerns raised in correspondence by stakeholders within the insurance industry regarding Institutions for Occupational Retirement Provision regulations and legislation; and if she will make a statement on the matter. [44415/22]
View answerIORP II, which became effective from 13 January 2019, 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 Retirement Annuity Contracts (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. 128 of 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, however, outlined that it was applying a deadline of 1st July 2022 in respect of OMA’s compliance with those new requirements.
The supervision of compliance with the requirements of both IORP II and the Pensions Act 1990 (‘1990 Act’) is the responsibility of the Pensions Authority, which is the regulator for pensions in Ireland (and the competent authority within the meaning of the IORP II Directive).
The Pensions Authority is an independent statutory body, and it would not be possible or appropriate for me to interfere with the Pensions Authority’s compliance supervision function or to direct the Pensions Authority to extend any compliance deadlines relating to the provision of one-member arrangements (‘OMAs’). Furthermore, IORP II requires Member States to ensure that competent authorities, such as the Pensions Authority, conduct their tasks in a transparent, independent and accountable manner.
I hope this clarifies the position.
