Pensions (Amendment) Act, 2002 (Part 1 and Sections 6, 9 To 12, 15 To 28, 30 To 36, 40, 44, 50 To 55 and 59) (Commencement) Order, 2002
Statutory Instruments
Source: Statutory Instruments

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paragraphs: This Order may be cited as the Pensions (Amendment) Act, 2002 (Part 1 and Sections 6, 9 to 12, 15 to 28, 30 to 36, 40, 44, 50 to 55 and 59) (Commencement) Order, 2002.
Commencement.
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paragraphs: Part 1 and Sections 6 , 9 to 12 , 15 to 28 , 30 to 36 , 40 , 44 , 50 to 55 and 59 of the Pensions (Amendment) Act, 2002 (No. 18 of 2002), shall come into operation on 1 June 2002.
GIVEN under the Official Seal of the Minister for Social,
Community and Family Affairs, this 1st day of JUNE 2002.
DERMOT AHERN
Minister for Social, Community and Family Affairs
EXPLANATORY NOTE
(This note is not part of the Instrument and does not purport to be a legal interpretation.)
This order provides for the commencement of certain provisions of the Pensions (Amendment) Act, 2002 as follows:
Part 1 (Sections 1 and 2) contains the usual provisions for short title, construction and definitions.
Section 6 inserts new definitions in connection with the new provisions of the Act.
Section 9 extends the exchange of information provisions to include PRSAs and to allow exchange of information with supervisory authorities inside and outside the State.
Section 10 allows the regulation of sectionalised schemes, and allows each section of such schemes to be regulated as a single scheme. In addition, it provides for Regulations in relation to pension matters covered by the Protection of Employees (Part-Time Work) Act 2001 .
Section 11 provides that Regulations may exempt pension schemes set up for the staff of North/South Implementation Bodies from any or all of the requirements of the Pensions Act as these schemes will be administered in Northern Ireland.
Section 12 allows the professional guidance of the Society of Actuaries in Ireland to be underpinned by regulations.
Section 15 amends the title of Part III to reflect the new requirement for schemes to provide a minimum value of contributory retirement benefit.
Section 16 inserts new definitions relating to minimum value of contributory retirement benefit.
Section 17 reduces the qualifying period for preserved benefit from 5 to 2 years to apply to those leaving service after 1 June 2002.
Sections 18 and 19 provide in relation to defined benefit and defined contribution schemes for the extension of the preservation requirements to include pre 1991 service where the member leaves service after 1 June 2002 with an entitlement to a preserved benefit within the new vesting rule.
Section 20 extends the prohibition of refunds to cover pre 1 January 1991 contributions in the case of scheme members leaving after 1 June 2002 who qualify for a preserved benefit within the new vesting rule.
Section 21 provides for the application of the revaluation requirements to preserved benefit in respect of pre and post 1991 service.
Section 22 makes a number of changes to the legislation governing transfer payments. It gives a member of an occupational pensions scheme who is entitled to a preserved benefit the right to direct the trustees of the scheme to make a transfer payment in respect of his preserved benefit to a PRSA in certain circumstances as set out in tax provisions or to an unfunded scheme (as well as to a funded scheme). It also allows for regulations permitting the transfer payments to pension arrangements outside the State. It allows for transfer values to be adjusted to reflect the funding condition of the scheme making the transfer, to ensure that those taking transfers are not advantaged over those remaining within the scheme, and provides for adherence to the Society of Actuaries in Ireland guidance notes or other guidance specified in regulations in the calculation of transfer values.
Section 23 provides for a minimum value of contributory retirement benefit for members of contributory defined benefit schemes retiring after 1 June 2002.
Section 24 ensures that any provisions of an occupational pension scheme relating to forfeiture and lien are disregarded for the purposes of minimum contributory retirement benefit, as well as preserved benefit.
Section 25 allows the Minister, as respects particular schemes or classes of scheme, to exclude or modify the provisions of the Act relating to the minimum value of contributory retirement benefit, as well as the provisions relating to preservation.
Section 26 allows schemes to provide benefits more valuable than the minimum contributory retirement benefit, as well as benefits more valuable than preserved benefit. In addition, it implements EU Council Directive 98/49/EC (known as the Mobility Directive) by requiring that benefit as described in that section be provided on a non discriminatory basis as between members who leave service because they have gone to another Member State and members who leave for another reason.
Section 27 provides for benefits from defined contribution schemes, as well as defined benefit schemes, to be secured following wind-up of the schemes by transfer payments regardless of the terms of the scheme concerned. It also allows the Minister to make regulations in the case of a scheme winding up removing the existing obligations in relation to the funding standard and the production of an annual report, actuarial valuation and audited accounts.
Section 28 provides for a new certified percentage to apply to actuarial funding certificates (AFCs), having an effective date after 1 June 2002, and allows for regulations to prescribe the content as well as the form of AFCs.
Section 30 amends the list of liabilities which must be funded for a scheme to comply with the Minimum Funding Standard, to reflect mainly the extension of the preservation/revaluation provisions.
Section 31 creates a new specified percentage regime for actuarial funding certificates in respect of certain new preserved benefits, which will run from 1 June 2002 to 1 June 2012.
Section 32 updates a reference to the Taxes Consolidation Act, 1997 and reflects the revised “specified percentage” requirement for actuarial funding certificates.
Section 33 preserves the existing order of priorities for schemes which wind up on or before 1 June 2002, introduces a revised order of priorities for schemes which wind up after 1 June 2002 to provide that benefits secured by Additional Voluntary Contributions (AVCs) rank first in the new order of priority and to take account of the new preservation and funding requirements, and amends a subsection dealing with transfer payments on wind up; and provides for the treatment of surplus where a scheme is wound up after 1 June 2002.
Section 34 updates a reference to the Taxes Consolidation Act, 1997 in the section dealing with Funding Proposals.
Section 35 inserts a new title to Part V in connection with the remittance of contributions by employers.
Section 36 provides for the extension of the Minister's power to require disclosure. The amendment will, in particular, facilitate the making of regulations to prescribe the information to be furnished by employers in cases where there is a change in terms of employment which may lead to a reduction in pension entitlement. This is to ensure that the relevant information is supplied to each person affected. It will also facilitate the making of regulations requiring the disclosure of commissions, charges, etc. in connection with the scheme.
Section 40 extends the provision facilitating the modification of Part V in respect of specified schemes or categories of schemes.
Section 44 allows regulations to exclude multi-employer schemes from the provisions of the Act relating to the selection of trustees.
Section 50 increases the size of the Pensions Board from 14 to 16 persons by the addition of a representative of consumer interests and a representative of pensioner interests.