Trustee Training Deadline is approaching

The deadline for trustee training is February 1^st 2014.  Trustee training ensures that occupational pension schemes are run to the highest level of governance and compliance.  ITL are an established provider of independent professional trustee services to occupational pension schemes.

ITL are approved trustee trainers with the Pensions Board and have developed an online trustee training course to ensure all trustees can complete their obligations.  To begin the process, click here to complete a short survey.

More information can be found at www.trustee.ie.  Alternatively you can contact Elma Fox on Elma.Fox@Trustee.ie.

Ignoring the Elephant in the Room

The Social welfare and Pensions (Miscellaneous Provisions) Bill 2013 was announced by the Minister for Social Protection, Joan Burton TD on 22^nd May 2013.  The main pension provisions of the Bill were:

§  The Pensions Board will change its name to Pensions Authority and its governance is to change.  The Pensions Authority will consist of an independent chairperson appointed by the Minister for Social Protection and 2 ordinary members, one nominated by the Minister for Social Protection and a representative of the Minister for Finance.

 

§  A new Pensions Council will be established.  The Pensions Council will have a purely advisory function.  The Pensions Council will consist of: 

v  A chairperson;

v  A representative of the Minister for Social Protection;

v  The Pensions Regulator;

v  A representative of the Central Bank;

v  A representative of the Department for Public Expenditure and reform; and

v  Up to 8 other members who the Minister for Social Protection considers to have the relevant skills, specialist knowledge, experience or expertise to enable them to carry out their functions under the Pensions Act.

§  The name of the chief executive of the Pensions Board will be changed to the Pensions Regulator and s/he will be a member of the Pensions Council.

§  The Pensions Board will be given the power to wind up a pension scheme where the scheme is underfunded and the trustees and employer are not in a position to adopt a funding proposal, and where the trustees of the scheme fail to comply with a section 50 direction to restructure scheme benefits.

§  The introduction of a provision for an appeal to the High Court on a point of law following such a direction from the Pensions Board, or following a direction from the Pensions Board regarding a Section 50 order to reduce benefits “made other than on application by the trustees”.

While the above changes to the governance and oversight of pensions are largely welcomed, what is disappointing is that the Bill does not include the much promised proposed reform to the priority order rule, i.e. the order in which assets are distributed when a defined benefit pension scheme is in wind-up.  With a deadline of 30 June 2013 for the submission of funding proposals, for many schemes the decision not to address this issue in this Bill would seem to be a missed opportunity to reinstate some fairness between members of defined benefit schemes.   

The reason given by the Minister for not dealing with this issue is the recent Waterford Crystal case in which the EU ruled that the Irish government had failed to implement the EU Directive requiring governments to provide protection for scheme members where the employer was insolvent.  While it is of some relevance, the feeling is that this is just an excuse for the Minister failing to grasp the nettle of pension reform.

 

Written by Niamh Quirke

Independent Trustee Limited

The Pensions Board publishes funding rules for defined benefit pension schemes

Yesterday, the Pensions Board published revised rules for defined benefit schemes and announced the deadlines by which trustees must submit funding proposals to the Board to deal with scheme deficits.

The full Press Release on the revised rules can be found on the Pensions Board website. 

Trustee Training Deadline is tomorrow 1st February

As the deadline for Trustee Training is upon us, Trustee Manager, Elma Fox, discusses the last chance to comply with the deadline with Ian Guider on Newstalk's Breakfast Business.

The deadline for trustee training is tomorrow, 1st February 2012, and there is a concern that many due to complete the training are unaware of their obligations. We have developed on-line tools to help define the requirements and to complete the training. More information can be found at www.trustee.ie.

Listen to Elma's interview with Ian Guider here, at 07:56. 

New Years Resolution!

Complete trustee training and avoid €2k fine!

Almost two years ago, the Pensions Board introduced a requirement for all pension scheme trustees to complete trustee training. For any trustees appointed prior to that date they have two years to complete the training so the 1^st February 2012 is the deadline for many.   

The concern is that many who are due to complete the training have not yet done so because of lack of awareness of their obligations. 

3 Common Misconceptions

·      There is an assumption that this training is for bigger pension schemes only but that’s not the case.  If the employer fail to provide training to all the relevant parties they may be prosecuted. In addition a trustee who does not undergo the training may be subject to an on-the-spot fine of €2,000 by the Pensions Board.

·         One or two person company pension schemes where the employer is the trustee.  Many of these employers may not realise they are still officially the trustees of such schemes particularly where the scheme was established for an employee who has since left the company.  However,  the employer remains as the trustee and must comply with the requirements.

·         Directors must receive training even if the scheme is only established for one of them. The key point is that; if the employer is the trustee (as is normal for one person schemes) then ALL the directors must complete the training.

Independent Trustee Company have developed an on-line tool to help those who are unsure of their requirements find out if they are actually required to complete the training.  It’s a quick process and can be found on www.trustee.ie

What has the Pensions Board got to say about the Levy?

There was some interesting coverage in The Oireachtas Report which was broadcasted on RTE1 yesterday. The Pensions Board CEO, Brendan Kennedy, was questioned about the Pensions Board's role in advising the Government on the pensions levy.

The Oireachtas Report footage is here. The relevant piece starts at 12min 50. The footage will be available until 8th December 2012.