S.I. No. 278/2002 - Occupational Pension Schemes (Funding Standard) (Amendment) Regulations, 2002

The Minister for Social, Community and Family Affairs, in exercise of the powers conferred on him by sections 5 , 42 and 47 of the Pensions Act, 1990 (No. 25 of 1990) hereby makes the following Regulations:-

Citation and Commencement

1. (1) These Regulations may be cited as the Occupational Pension Schemes (Funding Standard) (Amendment) Regulations, 2002.

• (2) These Regulations, the Occupational Pension Schemes (Funding Standard) Regulations, 1993 ( S.I. No. 419 of 1993 ), the Occupational Pension Schemes (Funding Standard) (Amendment) (No. 2) Regulations, 1998 ( S.I. No. 568 of 1998 ) and the Occupational Pension Schemes (Funding Standard) (Amendment) Regulations, 2000 ( S.I. No. 337 of 2000 ) shall be construed together as one and may be cited together as the Occupational Pension Schemes (Funding Standard) Regulations, 1993 to 2002.

• (3) These Regulations shall come into operation on the 2^nd day of June, 2002.

Definitions

2. In these Regulations —

“the 1993 Regulations” means the Occupational Pension Schemes (Funding Standard) Regulations, 1993 ( S.I. No. 419 of 1993 ).

Amendment of the 1993 Regulations

3. The 1993 Regulations are hereby amended-

• (a) in article 4 by the substitution for sub-article (1) of the following sub-article:

• “(1) For the purposes of section 42 of the Act -

  • (a) the first actuarial funding certificate in respect of a relevant scheme which came into operation prior to the 1^st day of January 1991, shall be in the form set out in Schedule A to these Regulations or in a form substantially to the like effect,

  • (b) an actuarial funding certificate having an effective date on or before the 1st day of June 2002 in respect of a relevant scheme which came into operation prior to the 1^st day of January 1991 other than a certificate referred to in paragraph (a) above shall be in the form set out in Schedule B to these Regulations or in a form substantially to the like effect,

  • (c) the first actuarial funding certificate having an effective date after the 1^st day of June 2002 in respect of a relevant scheme which came into operation prior to the 1^st day of June 2002, shall be in the form set out in Schedule BA to these Regulations or in a form substantially to the like effect,

  • (d) an actuarial funding certificate in respect of a relevant scheme other than a certificate referred to in paragraphs (a) (b), or (c) above shall be in the form set out in Schedule BB to these Regulations or in a form substantially to the like effect.”,

• (b) in article 5 by -

• (i) the substitution for sub-article (c) of the following sub-article:

• “(c) in the case of an actuarial funding certificate having an effective date after 30 June 1997 but on or before 31 December 2000,

• (i) self-investment in excess of 5 per cent. or, in the case of a small member-controlled scheme, 20 per cent. of the resources of the scheme and

• (ii) concentration of investment in excess of 15 per cent. of the resources of the scheme,”,

• (ii) the substitution for sub-article (d) of the following sub-article:

• “(d) in the case of an actuarial funding certificate having an effective date after 31 December 2000 but on or before 31 December 2002,

• (i) self-investment in excess of 5 per cent. or, in the case of a small member-controlled scheme, self-investment in excess of 20 per cent. of the resources of the scheme and

• (ii) concentration of investment in excess of 10 per cent. of the resources of the scheme,”, and

• (iii) the insertion after sub-article (d) of the following sub-articles:

• “(e) in the case of an actuarial funding certificate having an effective date after 31 December 2002 but on or before 31 December 2003,

  • (i) self-investment in excess of 2.5 per cent. or, in the case of a small member-controlled scheme, self-investment in excess of 20 per cent. of the resources of the scheme and

  • (ii) concentration of investment in excess of 10 per cent. of the resources of the scheme, and

• (f) in the case of an actuarial funding certificate having an effective date after 31 December 2003,

  • (i) any self-investment or, in the case of a small member-controlled scheme, self-investment in excess of 20 per cent. of the resources of the scheme and

  • (ii) concentration of investment in excess of 10 per cent. of the resources of the scheme.”, and

• (c) the insertion after Schedule B of the following Schedules:

“SCHEDULE BA

Article 4.

FIRST ACTUARIAL FUNDING CERTIFICATE AFTER 1 JUNE 2002

THIS CERTIFICATE HAS BEEN PREPARED UNDER THE PROVISIONS OF SECTION 42 OF THE PENSIONS ACT 1990 (“the ACT”) FOR SUBMISSION TO THE PENSIONS BOARD BY THE TRUSTEES OF THE SCHEME

SCHEME NAME:____________

SCHEME COMMENCEMENT DATE:________

PENSIONS BOARD REFERENCE NO.:_______

EFFECTIVE DATE OF

THIS CERTIFICATE: __________

PREVIOUS CERTIFICATE: _____

On the basis of information supplied to me and having regard to such financial and other assumptions as I consider to be appropriate: -

• (1) (a) ¹ I hereby state the certified percentage for the above scheme for the purposes of Section 45 of the Act to be______%

(b) ¹ I hereby state that the certified percentage for the above scheme for the purposes of Section 45 of the Act is not applicable as there are no benefits which are described in paragraph 5 of the Third Schedule.

• (2) I am of the opinion that the resources of the scheme at the effective date of this certificate ¹ would/¹ would not have been sufficient if the scheme had been wound up at that date to provide for:-

  • (a) the liabilities of the scheme determined in accordance with Section 44(a) of the Act, and

  • (b) the estimated expenses of administering the winding up of the scheme.

  I therefore certify that as at the effective date of this certificate the scheme ¹ satisfies/¹ does not satisfy the funding standard provided for in Section 44 of the Act. I further certify that I am qualified for appointment as actuary to the scheme for the purposes of Section 51 of the Act.

  Signature:____ Date:_____

  Name:_____ Qualification:__

  Name of Actuary's Employer/Firm:_______ Scheme Actuary Certificate No:. __

SCHEDULE BB

Article 4

ACTUARIAL FUNDING CERTIFICATE

THIS CERTIFICATE HAS BEEN PREPARED UNDER THE PROVISIONS OF SECTION 42 OF THE PENSIONS ACT 1990 (“the ACT”) FOR SUBMISSION TO THE PENSIONS BOARD BY THE TRUSTEES OF THE SCHEME

SCHEME NAME:____________

SCHEME COMMENCEMENT DATE:________

PENSIONS BOARD REFERENCE NO.:_______

EFFECTIVE DATE OF

THIS CERTIFICATE: __________

PREVIOUS CERTIFICATE: _____

On the basis of information supplied to me and having regard to such financial and other assumptions as I consider to be appropriate:-

• (1) (a) ¹ I hereby state the specified percentage for the above scheme for the purposes of Section 44 of the Act to be__%

(b) ¹ I hereby state that the specified percentage for the above scheme for the purposes of Section 44 of the Act is not applicable as there are no benefits which are described in paragraph 5 of the Third Schedule.

• (2) I am of the opinion that the resources of the scheme at the effective date of this certificate ¹ would/² would not have been sufficient if the scheme had been wound up at that date to provide for:-

• (a) the liabilities of the scheme determined in accordance with Section 44(a) of the Act, and

• (b) the estimated expenses of administering the winding up of the scheme.

I therefore certify that as at the effective date of this certificate the scheme ¹ satisfies ¹ does not satisfy the funding standard provided for in Section 44 of the Act. I further certify that I am qualified for appointment as actuary to the scheme for the purposes of Section 51 of the Act.

Signature:______ Date:___

Name:_______ Qualification:_____

Name of Actuary's Employer/Firm:__ Scheme Actuary Certificate No:. __

EXPLANATORY NOTE

[This note is not part of the Instrument and does not purport to be a legal interpretation.]

Arising, mainly, out of amendments to Funding Standard in Part IV of the Pensions Act 1990 (by Chapter 4, Part 4 of the Pensions (Amendment) Act, 2002 ) the Occupational Pension Schemes (Funding Standard) Regulations, 1993 ( S.I. No. 419 of 1993 ) have been amended by the Occupational Pension Schemes (Funding Standard) (Amendment Regulations, 2002. The amending Regulations:

■ provide for new forms of Actuarial Funding Certificates in line with the amendments to the Funding Standard, and

■ change the percentages of self-investment and concentration of investment which must be excluded for the purpose of meeting the Funding Standard.

The (self-investment and concentration of investment) exclusions, in the case of schemes other than small self-controlled schemes, are as follows:

▶ self-investment in excess of 20 per cent up to 31 December 1993, 10 per cent up to 30 June 1997, 5 per cent up to 31 December 2002, 2 1/2 per cent up to 31 December 2003 and any self-investment after 31 December 2003;

▶ concentration of investment in excess of 20 per cent up to 30 June 1997 15 per cent up to 31 December 2000 and 10 per cent after 31 December 2000.

The exclusions in the case of small self-controlled scheme are:

▶ self-investment in excess of 20 per cent, and

▶ concentration of investment in excess of 20 per cent up to 30 June 1997 15 per cent up to 31 December 2000 and 10 per cent after 31 December 2000.

Footnotes