PENSIONS (AMENDMENT) ACT, 2002

“PART XI

Pensions Ombudsman

Interpretation (Part XI).	126.—(1) In this Part— ‘actual or potential beneficiary’ means a member, an external member, any person who has been a member, any surviving dependant of a deceased member, any person claiming to be a member or a surviving dependant of a deceased member, a contributor to a PRSA, a personal representative of a deceased member or deceased contributor or a widow or widower of a deceased member or deceased contributor; ‘civil servant’ has the meaning assigned to it by the Civil Service Regulation Act, 1956; ‘dependant’ means a dependant within the meaning of the rules of the scheme in question; ‘establishment day’ means the day on which section 5 of the Pensions (Amendment) Act, 2002, commences; ‘party’ in relation to a complaint or reference under this Part, means— (a) a person by whom, or on whose behalf, the complaint or reference was made, (b) a person responsible for the management of the scheme or PRSA to which the complaint or reference relates; ‘superannuation benefit’ means a pension, gratuity or other allowance payable on resignation, retirement or death. (2) In this Part, references to an act include references to an omission and references to the doing of an act include references to the making of an omission. (3) For the purposes of this Part, the following persons shall be deemed to be responsible for the management of an occupational pension scheme: (a) any trustee of the scheme; (b) any former trustee of the scheme; (c) any employer to whom the scheme relates; (d) any former employer to whom the scheme relates; or (e) such other person or category of persons as may be prescribed. (4) For the purposes of this Part, the following persons shall be deemed to be responsible for the management of a PRSA: (a) any provider; (b) any former provider; (c) any employer; (d) any former employer; or (e) such other person or category of persons as may be prescribed.
Establishment of Pensions Ombudsman.	127.—On the establishment day there shall stand established the office of Pensions Ombudsman and the holder of the office shall be known as the Pensions Ombudsman.
Appointment of Pensions Ombudsman.	128.—(1) The Pensions Ombudsman shall be appointed by the Minister and, subject to the provisions of this Act, he shall hold office on such terms and conditions as the Minister may, with the consent of the Minister for Finance, determine. (2) A person appointed to be the Pensions Ombudsman whose term of office expires by effluxion of time shall be eligible for reappointment as the Pensions Ombudsman.
Term of office of Pensions Ombudsman.	129.—(1) Subject to the provisions of this section, a person appointed to be the Pensions Ombudsman shall hold office for a term of 6 years. (2) (a) The Minister may at any time remove the Pensions Ombudsman from office if, in the Minister's opinion, the Pensions Ombudsman has become incapable through ill-health of performing his functions, or has committed stated misbehaviour, or his removal appears to the Minister to be necessary for the effective performance of the functions of the office. (b) If the Pensions Ombudsman is removed from office under this subsection, the Minister shall cause to be laid before each House of the Oireachtas a statement of the reasons for the removal. (3) The Pensions Ombudsman may at any time resign his office by letter addressed to the Minister. (4) A person appointed to be the Pensions Ombudsman shall in any case vacate the office on attaining the age of 67 years. (5) (a) Where a person who holds the office of Pensions Ombudsman is— (i) nominated as a member of Seanad Éireann, (ii) nominated as a candidate for election to either House of the Oireachtas, the European Parliament or a local authority, (iii) regarded pursuant to Part XIII of the Second Schedule to the European Parliament Elections Act, 1997, as having been elected to the European Parliament, or (iv) co-opted to fill a casual vacancy in the membership of a local authority, he shall cease to hold the office of Pensions Ombudsman. (b) A person who is for the time being entitled— (i) under the standing orders of either House of the Oireachtas to sit therein, (ii) under the rules of procedure of the European Parliament to sit therein, or (iii) under the standing orders of a local authority to sit as a member thereof, shall, while so entitled, be disqualified from holding the office of Pensions Ombudsman. (6) A person who holds the office of Pensions Ombudsman shall not hold any other office or employment in respect of which emoluments are payable.
Salary and superannuation.	130.—(1) There shall be paid to the holder of the office of Pensions Ombudsman such remuneration and allowances for expenses as the Minister, with the consent of the Minister for Finance, may determine. (2) The Minister shall, with the consent of the Minister for Finance, make and carry out such scheme or schemes for the granting of superannuation benefits to or in respect of the Pensions Ombudsman as he may think fit. (3) Every such scheme shall fix the conditions for eligibility for payment of superannuation benefits under it and different conditions may be fixed by reference to the different circumstances pertaining to the particular officeholder concerned or his dependants at or before the time the question of eligibility for such payment falls to be considered. (4) The Minister may at any time, with the consent of the Minister for Finance, make and carry out a scheme or schemes amending or revoking a scheme under this section. (5) No superannuation benefit shall be granted by the Minister nor shall any other arrangement be entered into by the Minister for the provision of such a benefit to or in respect of the Pensions Ombudsman otherwise than in accordance with a scheme under this section or, if the Minister, with the consent of the Minister for Finance, sanctions the granting of such a benefit, in accordance with that sanction. (6) A scheme under this section shall be laid before each House of the Oireachtas as soon as may be after it is made and if a resolution annulling the scheme is passed by either such House within the next twenty-one days on which that House has sat after the scheme is laid before it, the scheme shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. (7) If any dispute arises as to the claim of any person to, or the amount of, any superannuation benefit payable in pursuance of a scheme or schemes under this section, such dispute shall be submitted to the Minister who shall refer it to the Minister for Finance, whose decision shall be final.
Functions of Pensions Ombudsman.	131.—(1) The Pensions Ombudsman shall be independent in the performance of his functions. (2) The Pensions Ombudsman may investigate and determine the following complaints and disputes— (a) a complaint made to him by or on behalf of an actual or potential beneficiary of an occupational pension scheme or PRSA, who alleges that he has sustained financial loss occasioned by an act of maladministration done by or on behalf of a person responsible for the management of that scheme or, as appropriate, PRSA; (b) any dispute of fact or law that arises in relation to an act done by or on behalf of a person responsible for the management of the scheme or, as appropriate, PRSA, and that is referred to him by or on behalf of the actual or potential beneficiary; and (c) any other complaint or dispute falling within a category of complaint or dispute prescribed by regulations made by the Minister, with the consent of the Minister for Finance, as a category of complaint or dispute to which this subsection shall apply. (3) A complaint or reference under this section shall be made to the Pensions Ombudsman in writing in such form as may from time to time be prescribed by regulations made by the Minister, after consultation with the Minister for Finance. (4) A complaint or reference under this section shall be made to the Pensions Ombudsman— (a) within whichever of the following periods is the last to expire— (i) 6 years from the date of the act giving rise to the complaint or reference, or (ii) 3 years from the earlier of the following 2 dates, namely, the date on which the person making the complaint or reference first became aware of the said act and the date on which that person ought to have become aware of that act, or (b) within such longer period as the Pensions Ombudsman may allow if it appears to him that there are reasonable grounds for requiring a longer period and that it would be just and reasonable so to extend the period. (5) References in this section to a complaint or dispute shall be construed as including references to a complaint or dispute the act giving rise to which was done prior to the establishment day if, but only if, that act was done within the period of 6 years prior to the passing of the Pensions (Amendment) Act, 2002 or between that passing and the establishment day, as the case may be. (6) The Pensions Ombudsman shall not investigate or determine a complaint or dispute unless the procedures referred to in section 132 have been resorted to and exhausted in accordance with their terms. (7) The Pensions Ombudsman shall not investigate or determine a complaint or dispute— (a) if, at the time of the making of the complaint or the reference of the dispute, there are proceedings before any court in respect of any matter which would be the subject of the investigation; (b) if the scheme or PRSA is of a description that is excluded from the jurisdiction of the Pensions Ombudsman by regulations made by the Minister under this subsection; or (c) if and to the extent that the complaint or dispute, or any matter arising in connection with the complaint or dispute, is of a description that is excluded from the jurisdiction of the Pensions Ombudsman by regulations made by the Minister under this subsection. (8) Where a question arises as to whether the Pensions Ombudsman has jurisdiction under this Part to investigate a complaint or dispute, such question shall be determined by the Pensions Ombudsman, whose decision shall be final. (9) The Pensions Ombudsman shall have such powers as are necessary for or incidental to the performance of his functions. (10) The Pensions Ombudsman may perform any of his functions, other than the powers conferred on the Pensions Ombudsman by section 139, through any member of his staff duly authorised by the Pensions Ombudsman in that behalf.
Procedures for internal resolution of disputes.	132.—(1) The Minister, with the consent of the Minister for Finance, may by regulations require— (a) the trustees of a scheme, and (b) a PRSA provider, to establish procedures for dealing with complaints made by, and resolving disputes arising between, prescribed persons in relation to prescribed matters concerning the scheme or a PRSA provided by such a provider, as the case may be. (2) Without prejudice to the generality of subsection (1), regulations under this section may— (a) require procedures as aforesaid to comprise specified steps (including, as the Minister considers appropriate, the making of an application for a determination to be made in relation to the complaint or dispute, the conducting of a hearing in relation to the matter concerned and the making of a determination in relation to the matter), (b) require one or more of the said steps to be taken or completed within a specified period, (c) require the provision of information in relation to the existence of those procedures and how they may be availed of, and (d) prescribe such other requirements as the Minister considers necessary or expedient for the purpose of enabling complaints or disputes referred to in subsection (1) to be dealt with or resolved. (3) Without prejudice to section 5(2), regulations under subsection (1) may, as respects schemes, specify different requirements by reference to the class of scheme concerned (being a class defined in the regulations by reference to the number of members of the scheme or such other matters as the Minister considers appropriate). (4) A determination made pursuant to procedures prescribed under this section shall not be binding on any person unless, upon or after the making of the determination, he assents, in writing, to be bound by it.
Consultants and advisers.	133.—Subject to the prior approval of the Minister, the Pensions Ombudsman may from time to time engage such consultants or advisers as he may consider necessary for the performance of his function, other than the powers conferred on the Pensions Ombudsman by section 139, and any fees due to a consultant or adviser engaged under this section shall be paid by the Pensions Ombudsman out of moneys at his disposal.
Exchange of information.	134.—Notwithstanding anything contained in any enactment, information held by the Pensions Ombudsman for the purposes of this Part may be transferred by the Pensions Ombudsman to the Board and information held by the Board for the purposes of this Act may be transferred by the Board to the Pensions Ombudsman.
Death or disability of actual or potential beneficiary.	135.—(1) Where an actual or potential beneficiary dies or is a minor or is otherwise unable to act for himself, then— (a) any complaint or dispute (whenever arising but subject to subsections (4) and (5) of section 131) which the actual or potential beneficiary might otherwise have made or referred under this Part may be made or referred by the appropriate person, and (b) anything in the process of being done by or in relation to the actual or potential beneficiary under or by virtue of this Part may be continued by or in relation to the appropriate person, and any reference in this Part, except this section, to an actual or potential beneficiary shall be construed as including a reference to the appropriate person. (2) For the purposes of subsection (1) ‘the appropriate person’ means— (a) where the actual or potential beneficiary has died, his personal representative; or (b) in any other case, a member of his family, or some other person who is considered by the Pensions Ombudsman to be a suitable person to represent him.
Staying court proceedings where a complaint is made or a dispute referred.	136.—Where— (a) a complaint has been made or a dispute referred to the Pensions Ombudsman; and (b) any party to the complaint or reference subsequently commences proceedings in any court against any other party to the complaint or reference in respect of any of the matters which are the subject of the complaint or reference, then, any party to the proceedings may at any time after an appearance has been entered, and before delivering any pleadings or taking any other steps in the proceedings, apply to the court to stay the proceedings and the court, if it is satisfied that— (i) there is no sufficient reason why the matter in respect of which the said proceedings have been commenced should not be investigated by the Pensions Ombudsman; and (ii) the applicant was at the time when the proceedings were commenced and still remains ready and willing to do all things necessary for the proper conduct of the investigation, shall make an order staying the proceedings.
Powers of Pensions Ombudsman in respect of investigations.	137.—(1) The Pensions Ombudsman may, for the purposes of an investigation by him under this Part, require any person who, in the opinion of the Pensions Ombudsman, is in possession of information, or has a document or thing in his power or control, that is relevant to the investigation to furnish that information, document or thing to the Pensions Ombudsman and, where appropriate, may require the person to attend before him for that purpose and the person shall comply with such a requirement. (2) The Pensions Ombudsman shall, for the purposes of an investigation by him under this Part, have all the powers, rights and privileges vested in the High Court or a judge thereof on the hearing of an action in respect of the examination of witnesses (including the administration of oaths and affirmations and the examination of witnesses abroad). (3) Subject to the provisions of this Part, a person to whom a requirement is addressed under this section shall be entitled to the same immunities and privileges as if he were a witness before the High Court. (4) A person shall not by act or omission obstruct or hinder the Pensions Ombudsman in the performance of his functions or do any other thing which would, if the Ombudsman were a court having power to commit for contempt of court, be contempt of such court. (5) If it appears to the Pensions Ombudsman that a person has failed to comply with a requirement made of him pursuant to the exercise by the Ombudsman of his powers under subsection (1) or (2), the Pensions Ombudsman may apply to the Circuit Court for an order under subsection (6). (6) Subject to subsection (7), if, on an application under subsection (5), the Circuit Court is satisfied as to the failure of the person concerned to comply with the requirement in question, the Circuit Court may make an order requiring that person to comply with the requirement. (7) If, on an application under subsection (5), the Circuit Court is of opinion that the requirement in question purports to require the person concerned— (a) to produce any documents or thing, or (b) to furnish information, for which that person is entitled to claim legal professional privilege, the Circuit Court shall set aside the requirement. (8) The Pensions Ombudsman may, if he thinks fit, pay to the person affected by an action in respect of which an investigation is held by the Pensions Ombudsman under this Part and to any other person who attends or furnishes information for the purposes of the investigation— (a) sums in respect of travelling and subsistence expenses properly incurred by them, and (b) allowances by way of compensation for loss of their time, of such amount as may be prescribed by the Minister, after consultation with the Minister for Finance. (9) A statement or admission made by a person in an investigation under this Part by the Pensions Ombudsman shall not be admissible as evidence against that person in any criminal proceedings. (10) The Pensions Ombudsman may, of his own volition or at the request of a party to a complaint or reference, state a case to the High Court on a point of law.
Conduct of investigations.	138.—(1) The Minister may, with the consent of the Minister for Finance, make regulations with respect to the procedure that is to be adopted in connection with the making of complaints, the reference of disputes, and the conduct of investigations under this Part. (2) Subject to the provisions of this Part and regulations thereunder, the procedure for the making of complaints, the reference of disputes, and the conduct of investigations under this Part shall be such as the Pensions Ombudsman considers appropriate in all the circumstances of the case, and he may, in particular, obtain information from such persons and in such manner, and make such enquiries, as he thinks fit. (3) Where the Pensions Ombudsman proposes to conduct an investigation into a complaint made or dispute referred under this Part, he shall give— (a) any person (other than the person by whom or on whose behalf the complaint or reference was made) responsible for the management of the scheme or PRSA to which the complaint or reference relates, (b) any other person against whom allegations are made in the complaint or reference, and (c) any other person whose interests, in the opinion of the Pensions Ombudsman, might be adversely affected by any eventual determination he makes in relation to the complaint or dispute, an opportunity to comment on any allegations contained in the complaint or reference.
Determinations of Pensions Ombudsman.	139.—(1) On the investigation of a complaint or reference under this Part, the Pensions Ombudsman shall make a determination in relation to the complaint or dispute, and may in the determination give to the parties concerned such directions as the Pensions Ombudsman considers necessary or expedient for the satisfaction of the complaint or the resolution of the dispute. (2) A direction under subsection (1) shall not require either— (a) an amendment of the rules of a scheme or the conditions of a PRSA contract, or (b) the substitution of the decision of the Pensions Ombudsman for that of the trustees of a scheme in relation to the exercise by the trustees of a discretionary power under the rules of the scheme. (3) Subject to subsection (4), the Pensions Ombudsman may under subsection (1) order such redress, including financial redress, for the party concerned as he considers appropriate, having regard to all the circumstances and to the provisions of this Part, and specifies. (4) Any financial redress under subsection (3) shall be of such amount as the Pensions Ombudsman deems just and equitable having regard to all the circumstances but shall not exceed any actual loss of benefit under the scheme or PRSA. (5) The determination of the Pensions Ombudsman shall be in writing and shall be communicated to the parties by the Pensions Ombudsman. (6) If the Pensions Ombudsman considers it appropriate to do so in any particular case, he may publish, in such form and manner as he thinks fit, a report in relation to any investigation under this Part and of the result of that investigation. (7) For the purpose of the law of defamation, the publication by the Pensions Ombudsman of any report under subsection (6) shall be absolutely privileged.
Appeal to High Court from determinations of Pensions Ombudsman.	140.—(1) A party to an investigation before the Pensions Ombudsman under this Part may appeal to the High Court from a determination of the Pensions Ombudsman within 21 days from the date of the determination. (2) The High Court, on the hearing of an appeal under this section, may, as it thinks fit, annul the determination concerned, confirm the determination or confirm the determination subject to such modifications as it considers appropriate.
Enforcement of determinations of Pensions Ombudsman.	141.—(1) (a) If a party fails or refuses to comply with a determination of the Pensions Ombudsman under this Part (‘a determination’), the Circuit Court shall, on application to it in that behalf by— (i) the other party concerned, or (ii) the Minister, if he is of opinion that it is appropriate to do so having regard to all the circumstances, make an order directing that party to carry out the determination in accordance with its terms. (b) In paragraph (a), the reference to a determination is a reference to such a determination in relation to which, at the expiration of the time for bringing an appeal against it, no such appeal has been brought or, if such an appeal has been brought, it has been abandoned. (2) Notwithstanding subsection (1), where, in proceedings under that subsection, the Circuit Court is satisfied that, owing to lapse of time, it would not be possible to comply with an order under that subsection, that Court shall make an order providing for such redress as it considers appropriate having regard to the provisions of this Part and all the circumstances. (3) In an order under this section providing for the payment of financial redress by any person, the Circuit Court may, if in all the circumstances it considers it appropriate to do so, direct the person concerned to pay to the actual or potential beneficiary concerned interest on the payment at the rate referred to in section 22 of the Courts Act, 1981, in respect of the whole or any part of the period beginning 4 weeks after the date on which the determination concerned is communicated to the parties and ending on the date of the order. (4) An application under this section to the Circuit Court shall be made to the judge of the Circuit Court for the circuit in which the relevant member or, as appropriate, contributor ordinarily resides.
Notices.	142.—Subsection (2), (3) and (4) of section 91 shall apply with respect to the mode in which a notice, direction or other document under this Part or regulations thereunder may be addressed to a person and served on or given to him in the same manner as they apply with respect to the mode in which those things may be done in relation to a notice, direction or other document under Part X or regulations thereunder.
Accounts and audits of Pensions Ombudsman.	143.—(1) The Pensions Ombudsman shall keep in such form as may be approved of by the Minister with the concurrence of the Minister for Finance all proper and usual accounts of all moneys received or expended by the Pensions Ombudsman, including an income and expenditure account and balance sheet and, in particular, shall keep all such special accounts as the Minister may from time to time direct. (2) Accounts kept in pursuance of this section shall be submitted, not later than such day after the end of the financial year of the Pensions Ombudsman to which they relate as the Minister may specify, to the Comptroller and Auditor General for audit and a copy of the income and expenditure account and of the balance sheet and of such other (if any) of its accounts as the Minister may direct and a copy of the Comptroller and Auditor General's report on the accounts shall be presented to the Minister as soon as may be after the completion of the said audit and the Minister shall cause copies of each of the documents aforesaid to be laid before each House of the Oireachtas.
Reports and information to Minister.	144.—(1) The Pensions Ombudsman shall furnish to the Minister such information regarding his income and expenditure as he may from time to time require. (2) As soon as may be after the end of each financial year of the Pensions Ombudsman, but not later than 6 months thereafter, the Pensions Ombudsman shall make a report to the Minister of his activities during that year and the Minister shall cause copies of the report to be laid before each House of the Oireachtas. (3) (a) Before the expiry of 12 months from the establishment day, the Pensions Ombudsman shall, with respect to his activities in the period referred to in paragraph (b), adopt a statement of strategy (which shall include a plan with respect to the manner in which he proposes to carry on those activities) and submit the statement to the Minister. (b) The period mentioned in paragraph (a) is the period ending on the day on which the statement of strategy under subsection (4)(a) is submitted to the Minister. (4) (a) Before the— (i) expiry of 3 years from the submission to the Minister of the statement of strategy referred to in subsection (3), and (ii) the expiry of each successive period of 3 years thereafter, the Pensions Ombudsman shall, with respect to his activities in the period referred to in paragraph (b), adopt a statement of strategy (which shall include a plan with respect to the manner in which he proposes to carry on those activities) and submit the statement to the Minister. (b) The period mentioned in paragraph (a) is the period ending on the day on which the next subsequent statement of strategy under this subsection is submitted to the Minister. (5) (a) The Pensions Ombudsman shall publish, as soon as practicable after its adoption, each statement of strategy under subsection (3) and (4). (b) As soon as practicable after the receipt by him of a statement of strategy under subsection (3) or (4), the Minister shall cause copies of it to be laid before each House of the Oireachtas. (6) Each report under subsection (2) and each statement of strategy under subsections (3) and (4) shall include information in such form and regarding such matters as the Minister may direct. (7) The Pensions Ombudsman shall, whenever so requested by the Minister, furnish to him information in relation to such matters as he may specify concerning or relating to the scope of his activities generally, or in respect of any account prepared by the Pensions Ombudsman or activities, other than day to day activities, of the Pensions Ombudsman.
Disclosure of Information.	145.—(1) A person shall not, without the consent of the Pensions Ombudsman, disclose any information obtained by him while performing (or as a result of having performed) duties as a member of the staff of, or an adviser or consultant to, the Pensions Ombudsman. (2) Nothing in subsection (1) shall prevent the disclosure of information in a report made to the Pensions Ombudsman or by or on behalf of the Pensions Ombudsman to the Minister or by or on behalf of the Pensions Ombudsman under section 139(6). (3) Notwithstanding subsection (1), the Pensions Ombudsman or a member of his staff may disclose to a member of the Garda Síochána information which, in the opinion of the Pensions Ombudsman or the member of his staff, may relate to the commission of an offence (whether an offence under this Act or not).
Staff of Pensions Ombudsman.	146.—(1) (a) There shall be employed in the office of the Pensions Ombudsman so many officers and servants as the Minister, with the consent of the Minister for Finance, shall from time to time determine. (b) The power of appointing a person to be an officer or servant of the Pensions Ombudsman shall be vested in the Minister. (2) Members of staff of the Pensions Ombudsman shall be civil servants in the Civil Service of the State. (3) The Minister may delegate to the Pensions Ombudsman the powers exercisable by him under the Civil Service Commissioners Act, 1956, and the Civil Service Regulation Acts, 1956 and 1958, as the appropriate authority in relation to members of the staff of the office of the Pensions Ombudsman and, if he does so, then so long as the delegation remains in force— (a) those powers shall, in lieu of being exercisable by the Minister, be exercisable by the Pensions Ombudsman, and (b) the Pensions Ombudsman shall, in lieu of the Minister, be for the purposes of this Act the appropriate authority in relation to members of the staff of the office of the Pensions Ombudsman.
Expenses of Pensions Ombudsman.	147.—The expenses incurred by the Pensions Ombudsman in the administration of this Part shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.”.

PART 4 Amendments of Existing Provisions of Principal Act

Chapter 1 Amendments to Part 1 of Principal Act

6 Amendment of section 2(1) of Principal Act.

6.—Section 2(1) of the Principal Act is amended—

• (a) by the substitution of the following definition for the definition of “auditor”:

“‘auditor’, in relation to a scheme or the business of a PRSA provider, means a person appointed in pursuance of this Act to act as auditor, for the purpose of this Act, of the scheme or the business of a PRSA provider, as the case may be;”,

• (b) by the insertion after the definition of “the chief executive” of the following definition:

“‘contract of employment’ means—

• (a) a contract of service or apprenticeship, and

• (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 services for a third person (whether or not the third person is party to the contract),

whether the contract is expressed or implied or if express, whether it is oral or in writing,”,

• (c) by the insertion after the definition of “early Retirement Rule” of the following definitions:

“‘employee’ 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 Act, 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, 1941, or of a harbour authority, a health board or a vocational education committee shall be deemed to be an employee employed by the authority, board or committee, as the case may be;

‘employer’ in relation to an employee, means (except in section 49 and in Part VII) 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;”,

• (d) by the insertion after the definition of “prospective member” of the following definitions:

“‘PRSA’ has the meaning assigned to it by section 91;

‘PRSA provider’ has the meaning assigned to it by section 91;”,

• (e) by the insertion after the definition of “member” of the following definition:

“‘Member State’ means a Member State of the European Communities;”.

• (f) by the insertion after the definition of “the Minister” of the following definition:

“‘multi-employer scheme’ means a scheme which applies to persons employed by more than one employer;”,

and

• (g) by the insertion after the definition of “scheme” of the following definitions:

“‘section’, in relation to a sectionalised scheme, means—

• (a) one of the distinct classes referred to in the definition of the latter expression into which the persons to whom the scheme applies are divided, or

• (b) one of the distinct parts of the resources of the scheme referred to in the said definition which is to be applied in the manner referred to in the said definition,

or both, as the case may require;

‘sectionalised scheme’ means a multi-employer scheme under the rules of which—

• (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.”.

7 Amendment of section 3(1) of Principal Act.

7.—Section 3(1) of the Principal Act is amended—

• (a) by the substitution for paragraphs (a), (b) and (bb) of the following paragraphs:

• “(a) Where—

  • (i) a trustee in his capacity as trustee,

  • (ii) an employer,

  • (iii) a PRSA provider,

  • (iv) an actuary or auditor of a scheme or a PRSA in his capacity as such actuary or auditor,

  • (v) a person who is required under regulations made under section 5A to carry out any of the duties imposed upon trustees by this Act or by any regulations thereunder, in his capacity as such a person, or

  • (vi) any other person,

  contravenes a provision of this Act or a regulation thereunder, he shall be guilty of an offence.

• (b) Where a person of whom a requirement is made by the Pensions Ombudsman under subsection (1) or (2) of section 137 fails to comply with that requirement, he shall be guilty of an offence.”;

and

• (b) by the substitution in paragraph (c) for “(a), (b) or (bb)” of “(a)”.

8 Further amendment of section 3 of Principal Act.

8.—(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 may be,”, and

• (b) by the substitution for “Board's” of “Board's or Pensions Ombudsman's”.

9 Amendment of section 4 of Principal Act.

9.—The following section is substituted for section 4 of the Principal Act:

“Exchange of Information.

4.—(1) Notwithstanding anything contained in any enactment, information held by the Board for the purposes of this Act may be transferred by the Board to the Revenue Commissioners and information held by the Revenue Commissioners for the purposes of Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997, relating to occupational pension schemes and Personal Retirement Savings Accounts may be transferred by the Revenue Commissioners to the Board. (2) The Board and every other supervisory authority established in the State may exchange among themselves all information which is necessary to enable the Board and each such authority to perform effectively their respective functions of a supervisory nature. (3) The Board may disclose information relating to occupational pension schemes and Personal Retirement Savings Accounts to a supervisory authority established outside the State for the purpose of enabling or assisting the performance by that authority of functions corresponding to those of the Board under this Act.”.

10 Amendment of section 5(3) of Principal Act.

10.—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 concerned 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:

• “(5) 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.”.

11 Amendment of section 5B of Principal Act.

11.—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”.

12 Provision in relation to professional guidance issued by Society of Actuaries in Ireland.

12.—The following section is inserted after section 7 of the Principal Act:

“Professional Guidance of the Society of Actuaries in Ireland.	7A.—So long as any professional guidance issued by the Society of Actuaries in Ireland is for the time being specified by regulations made under this Act for any purpose of this Act, the said Society shall not alter or withdraw such professional guidance without the prior consent of the Minister.”.

Chapter 2 Amendments to Part II of Principal Act

13 Amendment of section 10(1) of Principal Act.

13.—Section 10(1) of the Principal Act is amended—

• (a) by the substitution for paragraph (a) of the following paragraph:

• “(a) to monitor and supervise the operation of this Act and pension developments generally, including the activities of PRSA providers as such providers, the provision of PRSA products and the operation of Personal Retirement Savings Accounts;”,

• (b) by the substitution for paragraph (c) of the following paragraph:

• “(c) to—

• (i) issue guidelines or guidance notes on the duties and responsibilities of trustees of schemes and codes of practice on specific aspects of their responsibilities; and

• (ii) issue guidelines or guidance notes on the duties and responsibilities of PRSA providers in relation to PRSA products and with respect to such products;”,

and

• (c) by the substitution for paragraph (e) of the following paragraph:

• “(e) to advise the Minister on all matters arising in relation to this Act and, in particular, on standards for trustees of schemes and on their implementation;”.

14 Amendment of section 18 of Principal Act.

14.—Section 18 of the Principal Act is amended—

• (a) by the insertion after “a scheme” in subsection (1) of “or the state of a PRSA product”;

• (b) by the insertion after “a scheme” in subsection (3A) of “or a PRSA product”;

• (c) by the insertion after “a scheme” in subsections (6) and (7) of “or a PRSA provider”;

• (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 subsections (6) and (7) of “or the PRSA provider”;

• (g) by the substitution for subsection (2) of the following subsection:

• “(2) The Board or an authorised officer may in relation to—

  • (a) a scheme, require the employer concerned or the trustees of the scheme,

  • (b) a PRSA provider, require the officers and employees of the PRSA provider in respect of its PRSA activities, and

  • (c) an employer, require him in relation to his obligations under section 121,

  to furnish it within such reasonable period as may be specified with such information and explanations and such books of account and other documents in relation to the scheme or, as the case may be, PRSA products provided by the PRSA provider as may be specified.”;

• (h) by the insertion after “trustee” in subsection (3A)(a) of “,PRSA provider”;

• (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”.

Chapter 3 Amendments to Part III of Principal Act

15 Amendment of Part III (title thereof) of Principal Act.

15.—Part III of the Principal Act is amended by the substitution for the title to that Part of the following title:

Preservation of Benefits and Minimum Value of Contributory Retirement Benefits”.

16 Amendment of section 27(1) of Principal Act.

16.—Section 27(1) of the Principal Act is amended by the insertion of the following definitions:

“‘contributory retirement benefit’ means a member's ordinary retirement benefit multiplied by the member's reckonable service during which, under the rules of the scheme, he was required to pay contributions to the scheme and divided by the member's total reckonable service;

‘contributory scheme’ means a defined benefit scheme under the rules of which members are, or have been, required to pay contributions to the scheme;

‘minimum contributory retirement benefit’ means a contributory retirement benefit of at least the minimum value required under section 35A;

‘ordinary retirement benefit’ means long service benefit, excluding any such benefit which is secured by way of additional voluntary contributions or which represents a transfer of accrued rights from another scheme;”.

17 Amendment of section 28 of Principal Act.

17.—Section 28 of the Principal Act is amended—

• (a) by the substitution in subsection (1) for “the commencement of this Part” of “1 January 1991”, and

• (b) by the substitution for subsection (2) of the following subsection—

• “(2) A member of a scheme whose service in relevant employment terminates otherwise than on death before normal pensionable age shall be entitled to a benefit (in this Act referred to as a ‘preserved benefit’) if—

  • (a) his service in relevant employment so terminates after 1 January 1991 but on or before 1 June 2002, and he has completed at least five years' qualifying service of which at least two such years fall after 1 January 1991, or

  • (b) his service in relevant employment so terminates after 1 June 2002, and he has completed at least two years' qualifying service which fall after 1 January 1991.”.

18 Amendment of section 29 of Principal Act.

18.—Section 29 of the Principal Act is amended—

• (a) by the insertion in paragraph (a) of subsection (5) after “paragraph 1” of “and, where appropriate, paragraph 4”;

• (b) by the substitution in paragraph (b) of subsection (5) for “paragraph 1” of “paragraphs 1 and 4”;

• (c) by the deletion in subsection (6) of “and shall be provided in addition to the preserved benefit under subsection (2)”;

• (d) by the substitution in the proviso to subsection (6) for “the commencement of this Part”, in each place where those words occur, of “1 January 1991”;

• (e) by the substitution in subsection (7)—

• (i) for “another scheme” of “another occupational pension scheme”;

• (ii) for “that scheme” of “that occupational pension scheme”; and

• (iii) for “in addition to” of “as part of”;

and

• (f) by the substitution in the proviso to subsection (7)—

• (i) for “other scheme”, in each place where those words occur, of “other occupational pension scheme”; and

• (ii) for “the commencement of this Part”, in each place where those words occur, of “1 January 1991”.

19 Amendment of section 30 of Principal Act.

19.—Section 30 of the Principal Act is amended—

• (a) by the substitution for subsection (4) of the following subsection:

• “(4) Subject to subsections (5) and (6), the appropriate contributions shall be the contributions paid by or in respect of the member concerned for the purposes of long service benefit from—

  • (a) in the case of a member who is entitled to a preserved benefit under section 28(2)(a), 1 January 1991 or, if later, the date of the commencement of the relevant employment,

  • (b) in the case of a member who is entitled to a preserved benefit under section 28(2)(b), the date of the commencement of the relevant employment,

  but excluding additional voluntary contributions and any payment representing a transfer of accrued rights from another scheme.”;

• (b) by the substitution in the proviso to subsection (5) for “the commencement of this Part”, in each place where those words occur, of “1 January 1991”;

• (c) by the substitution in subsection (6)—

• (i) for “another scheme” of “another occupational pension scheme”; and

• (ii) for “that scheme” of “that occupational pension scheme”;

and

• (d) by the substitution in the proviso to subsection (6)—

• (i) for “that scheme” of “that occupational pension scheme”;

• (ii) for “the commencement of this Part” of “1 January 1991”; and

• (iii) for “such commencement” of “that date”.

20 Amendment of section 32 of Principal Act.

20.—Section 32 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by the substitution for “in accordance with the provisions of this Part” of “in accordance with section 28(2)(a)”; and

• (ii) by the substitution for “the commencement of this Part” of “1 January 1991”;

• (b) by the substitution for subsection (2) of the following subsection:

• “(2) A member of a scheme who is entitled to preserved benefit under the scheme in accordance with section 28(2)(b) shall not be entitled to receive a refund of any contributions paid to that scheme.”;

and

• (c) the insertion of the following subsection after subsection (2):

• “(3) A member of a scheme who would be entitled to preserved benefit under the scheme in accordance with the provisions of this Part if his service in relevant employment were to terminate shall not be entitled to receive a refund of any contributions paid to that scheme.”.

21 Amendment of section 33 of Principal Act.

21.—Section 33 of the Principal Act is amended—

• (a) by the substitution for subsection (1) of the following subsection:

• “(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”.

22 Amendment of section 34 of Principal Act.

22.—Section 34 of the Principal Act is amended—

• (a) by the substitution for subsection (2) of the following:

• “(2) A member of a scheme to whom this section applies shall be entitled to the transfer of an amount of money from the scheme (in this Part referred to as a ‘transfer payment’) in accordance with subsection (3) equal—

  • (a) in the case of a defined benefit scheme, to the actuarial value of the preserved benefit, and of any amount payable under section 29(4), on the date on which the relevant application under subsection (3) is received by the trustees or on a date selected by the trustees which is not earlier than three months before, nor later than three months after, the first-mentioned date, and

  • (b) in the case of a defined contribution scheme, to the accumulated value of the appropriate contributions under the scheme in respect of the member, such value to be determined on a date not later than three months following the date of the receipt of the application,

  and in each case regulations may prescribe that the transfer payment is to be calculated in accordance with any applicable professional guidance issued by the Society of Actuaries in Ireland and specified in the regulations or with any applicable guidance issued by any other person (including the Minister) and specified in the regulations:

  Provided that—

  - (i) in the case of a member who is entitled to a preserved benefit under section 28(2)(*b*), the part of the transfer payment which represents the actuarial value of benefits specified in section 44(*a*)(v) may be reduced by multiplying it by the specified percentage shown in the most recent actuarial funding certificate in respect of that scheme, and
  
  - (ii) in the case of a relevant scheme, if there is contained in the most recent actuarial funding certificate provided under section 42 in respect of the scheme a statement to the effect that the scheme does not satisfy the funding standard, the transfer payment may be reduced by the trustees on the advice of the actuary, having regard to the provisions of section 48.”;
  

• (b) in subsection (3)—

• (i) in paragraph (b) by the substitution for “for the purposes of this Act.” of “for the purposes of this Act, or”; and

• (ii) by the insertion of the following paragraphs after paragraph (b):

• “(c) in the making of a payment to another scheme which is not a funded scheme, which provides or is capable of providing long service benefit, of which he is a member or a prospective member and the trustees of which are willing to accept payments made under this paragraph, or

• (d) where so prescribed, and in accordance with such conditions as may be prescribed, in the making of a payment to the trustees, custodians, managers or administrators of an arrangement for the provision of retirement benefits established within the State, not being an arrangement of the kind mentioned in paragraph (a), (b) or (c), or

• (e) where so prescribed, and in accordance with such conditions as may be prescribed, in the making of a payment to the trustees, custodians, managers or administrators of an arrangement for the provision of retirement benefits established outside the State.”;

and

• (c) by the insertion in subsection (6) after “subsection (3)(a)” of “or (c)”.

23 Contributory retirement benefit for persons leaving schemes after 1 June 2002.

23.—The following section is inserted after section 35 of the Principal Act:

“Minimum Value of Contributory Retirement Benefit.

35A.—(1) Where the service in relevant employment of a member of a contributory scheme terminates after 1 June 2002— (a) at or after normal pensionable age, or (b) within five years before normal pensionable age, and the member is entitled under the rules of the scheme to a contributory retirement benefit, the amount of the contributory retirement benefit shall, if necessary, be increased so that its actuarial value is not less than the minimum value calculated in accordance with Part C of the Second Schedule. (2) No part of the amount of any increase to a contributory retirement benefit to be made under subsection (1) shall be provided by reducing the amount of any other benefit payable under the rules of the scheme concerned. (3) Any increase in contributory retirement benefit arising under subsection (1) shall be payable out of the resources of the scheme. (4) Except as provided for in this Part, a contributory retirement benefit increased under subsection (1) shall be payable in accordance with, and subject to, the rules of the scheme, being the rules as at the date of the termination of the relevant employment.”.

24 Amendment of section 36 of Principal Act.

24.—Section 36 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by the insertion in paragraph (a) after “benefit” of “or of a minimum contributory retirement benefit”; and

• (ii) by the insertion in paragraph (b) after “benefit” of “or a member's minimum contributory retirement benefit”;

and

• (b) by the insertion in subsection (2) after “preserved benefit” of “or a contributory retirement benefit”.

25 Amendment of section 37 of Principal Act.

25.—Section 37 of the Principal Act is amended—

• (a) by the insertion in subsection (4) after “preserved benefit” of “and the minimum value of contributory retirement benefit under section 35A”; and

• (b) by the insertion in subsection (4A) after “preserved benefit” of “and the minimum value of contributory retirement benefit under section 35A”.

26 Amendment of section 39 of Principal Act.

26.—The following section is substituted for section 39 of the Principal Act:

“Schemes may provide higher benefits.

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.”.

Chapter 4 Amendments to Part IV of Principal Act

27 Amendment of section 41 of Principal Act.

27.—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.”.

28 Amendment of section 42 of Principal Act.

28.—Section 42 of the Principal Act is amended—

• (a) in subsection (3)—

• (i) by the substitution for “the commencement of this Part” of “1 June 2002”; and

• (ii) by the insertion after “section 43” of “having an effective date after 1 June 2002”;

and

• (b) by the substitution for subsection (4) of the following subsection:

• “(4) Regulations under this section may—

  • (a) prescribe the form and content of an actuarial funding certificate, and

  • (b) require the actuary, in completing an actuarial funding certificate, to comply with the applicable professional guidance issued by the Society of Actuaries in Ireland and specified in the regulations or with any other applicable guidance issued by any other person (including the Minister) and specified in the regulations.”.

29 Amendment of section 43 of Principal Act.

29.—Section 43 of the Principal Act is amended—

• (a) in subsection (1) by—

• (i) the substitution for paragraph (a) of the following paragraph:

• “(a) in the case of a relevant scheme which commenced before 1 January 1991, not later than 1 January 1994, and”;

and

• (ii) the substitution in paragraph (b) for “such commencement” of “1 January 1991”;

• (b) by the insertion in subsection (2) after “prescribed” of “and except in the case provided for in subsection (3)”; and

• (c) by the insertion after subsection (2) of the following—

• “(3) If an annual report prepared under subsection (1) of section 55—

  • (a) does not contain the statement by an actuary required under subsection (3) or (4) of that section, as appropriate, or

  • (b) contains the statement by an actuary required under that subsection (3) but the actuary does not state therein that he is reasonably satisfied that, if he were to prepare under section 42 an actuarial funding certificate having an effective date of the last day of the period to which the annual report relates, he would certify that the scheme satisfies the funding standard provided for in section 44, or

  • (c) contains the statement by an actuary required under that subsection (4) but the actuary does not state therein that he is reasonably satisfied that the scheme will satisfy the funding standard at the effective date of the next actuarial funding certificate,

  then, in each case, the trustees of the scheme shall submit an actuarial funding certificate to the Board within twelve months of the last day of the period to which the annual report relates and such a certificate shall have an effective date not earlier than the last day of the period to which the annual report relates.”.

30 Amendment of section 44 of Principal Act.

30.—Section 44 of the Principal Act is amended in paragraph (a) by the substitution for subparagraphs (i) to (iv) of the following subparagraphs:

• “(i) additional benefits secured or granted by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates to the extent that the rights to which the transfer relates were originally secured or granted by way of additional voluntary contributions,

• (ii) benefits in the course of payment to which paragraph 1 of the Third Schedule relates,

• (iii) benefits, other than those referred to in subparagraphs (i) and (ii), which consist of a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates,

• (iv) benefits, other than those referred to in subparagraphs (i), (ii) and (iii), to which paragraphs 3 and 4 of the Third Schedule relate, and

• (v) the percentage (in this Part referred to as the ‘specified percentage’) of any benefits, other than those referred to in subparagraphs (i), (ii) and (iii), to which paragraph 5 of the Third Schedule relates.”.

31 Amendment of section 45 of Principal Act.

31.—The following section is substituted for section 45 of the Principal Act:

“Provisions relating to schemes commencing before 1 June 2002.

45.—(1) This section applies to relevant schemes that came into operation before 1 June 2002. (2) The actuary shall determine the percentage, if any, of the benefits under a scheme to which paragraph 5 of the Third Schedule relates that, in his opinion, could have been provided at the effective date of the first actuarial funding certificate having an effective date after 1 June 2002 in relation to the scheme from the resources of the scheme if— (a) the scheme had been wound up on that date, and (b) (i) the liabilities of the scheme for benefits under the scheme specified in subparagraphs (i), (ii), (iii) and (iv) of paragraph (a) of section 44, and (ii) the estimated expenses of administering a winding up, had already been discharged from resources of the scheme. (3) The first actuarial funding certificate having an effective date after 1 June 2002 in relation to a scheme shall state a percentage (in this Part referred to as ‘the certified percentage’), being the lesser of— (a) the percentage determined by the actuary pursuant to subsection (2), and (b) 100 per cent. (4) For the purposes of this Part— (a) where an actuarial funding certificate relates to an effective date not later than 1 June 2002, the specified percentage shall be 0 per cent, (b) where an actuarial funding certificate relates to an effective date after 1 June 2002 but not later than 1 June 2012, the specified percentage shall be the certified percentage, (c) where an actuarial funding certificate relates to an effective date after 1 June 2012 and on 1 June 2002 the scheme concerned was a funded scheme, the specified percentage shall be 100 per cent.”.

32 Amendment of section 46(1) of Principal Act.

32.—Section 46(1) of the Principal Act is amended in paragraph (b)—

• (a) by the substitution in subparagraph (ii) for “Chapter II of Part I of the Finance Act, 1972” of “Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997”;

• (b) by the substitution for “(i), (ii) and (iii)” of “(i), (ii), (iii) and (iv)”; and

• (c) by the substitution for “44(a)(iv)” of “44(a)(v)”.

33 Amendment of section 48 of Principal Act.

33.—The following section is substituted for section 48 of the Principal Act:

“Priorities on winding up of relevant scheme.

48.—(1) In applying the resources of a relevant scheme which has been wound up after 1 January 1997, the trustees shall discharge the liabilities of the scheme for the following benefits in the following order— (a) where the scheme is wound up on or before 1 June 2002— (i) firstly, the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons, who, at the date of the winding up, were within the categories referred to in that paragraph, to the extent that they are not already discharged, and (ii) secondly, the benefits specified in paragraphs 2 and 3 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up, were within the categories referred to in those paragraphs, to the extent that they are not already discharged, before discharging the liabilities of the scheme for other benefits, and (b) where the scheme is wound up after 1 June 2002— (i) firstly, all additional benefits secured or granted by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates to the extent that the rights to which the transfer relates were originally secured or granted by way of additional voluntary contributions, (ii) secondly, the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons, who, at the date of the winding up, were within the categories referred to in that paragraph, to the extent that they are not already discharged, and (iii) thirdly, the benefits specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up, were within the categories referred to in those paragraphs, to the extent that they are not already discharged, before discharging the liabilities of the scheme for other benefits. (2) If, after discharging the liabilities of a scheme to which subsection (1)(b) applies for the benefits specified in that subsection and any other benefits arising under the rules of the scheme, any resources of the scheme remain, then, before returning any part of the resources of the scheme to the employer, the trustees shall, to the extent that they have not already done so, provide out of the resources of the scheme for revaluation of the benefits specified in paragraph 4 of the Third Schedule, calculated in accordance with section 33 as though these benefits were specified in paragraphs 2 and 3 of the Third Schedule. (3) In applying the resources of a relevant scheme which has been wound up, the trustees may discharge, notwithstanding anything contained in the rules of the scheme and without the consent of the member concerned, the liability of the scheme for benefits payable to or in respect of any member by— (a) making a payment to another funded scheme which provides or is capable of providing long service benefit and of which he is a member or a prospective member, or (b) the making of one or more payments under policies or contracts of assurance that are effected on behalf of the member with one or more undertakings (within the meaning of the Insurance Act, 1989) and that are approved by the Revenue Commissioners under Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997, which policies or contracts of assurance shall not be deemed to be an occupational pension scheme for the purposes of this Act, or (c) where so prescribed, and in accordance with such conditions as may be prescribed, the making of a payment to the trustees, custodians, managers or administrators of an arrangement for the provision of retirement benefits established within the State, not being an arrangement of the kind mentioned in paragraphs (a) or (b), of an aggregate amount not less than the actuarial value of the benefits payable on the winding up under the rules of the scheme, subject always to subsections (1) and (2). (4) Nothing in this section requires liabilities for benefits to be discharged before liabilities for expenses, fees and costs associated with the winding up of the scheme.”.

34 Amendment of section 49(4) of Principal Act.

34.—Section 49(4) of the Principal Act is amended by the substitution for “Chapter II of Part I of the Finance Act, 1972” of “Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997”.

Chapter 5 Amendments to Part V of Principal Act

35 Amendment of Part V (title thereof) of Principal Act.

35.—Part V of the Principal Act is amended by the substitution for the title to that Part of the following title:

“PART V

Disclosure of Information in relation to Scheme and Remittance of Contributions by Employers”.

36 Amendment of section 54 of Principal Act.

36.—Section 54 of the Principal Act is amended—

• (a) in subsection (1)—

• (i) by the insertion after “trustees of a scheme” of “or any employer to whom a scheme relates”; and

• (ii) by the insertion in paragraph (b) after “scheme” of “, including any commission, charge, expense or remuneration paid or received in connection with the scheme”;

• (b) in subsection (4)—

• (i) by the substitution of the following paragraph for paragraph (a):