Automatic Enrolment Retirement Savings System Act 2024

PART 1 Preliminary and general

1.. Short title and commencement

1. (1) This Act may be cited as the Automatic Enrolment Retirement Savings System Act 2024.

(2) This Act shall come into operation on such day or days as the Minister may by order or orders appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2.. Definitions

2. In this Act—

“AE provider scheme” shall be construed in accordance with section 69(2);

“Authority” has the meaning given by section 8;

“company” means—

(a) a company formed and registered under the Companies Act 2014, or

(b) an existing company within the meaning of that Act;

“contributing participant” shall be construed in accordance with section 57;

“contribution” means a participant contribution, an employer contribution or a State contribution;

“employee” has the meaning given by section 47;

“employer” has the meaning given by section 47;

“employer contribution” means a contribution to which section 59(2) applies;

“enactment” has the same meaning as it has in the Interpretation Act 2005;

“enrolment date”, in relation to a person, means the date assigned as that person’s enrolment date under section 50(1) or section 53(1);

“European Union act” means—

(a) a provision of the treaties governing the European Union, or

(b) an act or provision of an act adopted by an institution of the European Union, an institution of the European Communities or any other body competent under those treaties;

“financial year” means the period which is co-extensive with a calendar year;

“investment management provider” shall be construed in accordance with section 68(2);

“Minister” means the Minister for Social Protection;

“NTMA” means the National Treasury Management Agency;

“participant” shall be construed in accordance with section 49;

“participant contribution” means a contribution to which section 59(1) applies;

“pensionable age” has the meaning given by section 2 of the Social Welfare Consolidation Act 2005;

“prescribe” means prescribe by regulations made by the Minister under this Act;

“re-enrolment date”, in relation to a person, means a date assigned as that person’s re enrolment date under section 53(3) or section 55(1);

“service provider” means a person engaged under section 32;

“State contribution” means a contribution to which section 60 applies.

3.. Regulations

3. (1) The Minister may by regulation provide for any matter referred to in this Act as prescribed or to be prescribed.

(2) Without prejudice to any provision of this Act, regulations under this Act may contain such incidental, supplementary and consequential provisions as appear to the Minister to be necessary or expedient for the purposes of the regulations.

(3) Every regulation under this Act shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the regulation is passed by either such House within the next 21 days on which that House sits after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to anything previously done under it.

4.. Service of documents

4. (1) Subject to Part 6, a notice or other document that is required to be sent or given to a person under this Act shall be addressed to the person concerned by name, and may be sent or given to the person in one of the following ways:

(a) by delivering it to the person;

(b) by leaving it at the address at which the person ordinarily resides or, in a case in which an address for service has been furnished, at that address;

(c) by sending it to the person in a prepaid registered letter to the address at which the person ordinarily resides or, in a case in which an address for service has been furnished, to that address;

(d) by making it available to the person through an electronic system in accordance with Part 6.

(2) For the purpose of this section, a company shall be deemed to be ordinarily resident at its registered office, and every other body corporate and every unincorporated body of persons shall be deemed to be ordinarily resident at its principal office or place of business.

5.. Expenses

5. The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Public Expenditure, National Development Plan Delivery and Reform, be paid out of moneys provided by the Oireachtas.

PART 2 An Túdarás Náisiúnta um Uathrollú Coigiltis Scoir

Chapter 1

6.. Definitions (Part 2)

6. In this Part—

“Board” has the meaning assigned to it by section 10;

“chief executive” means the chief executive appointed under section 25;

“committee of the Board” means a committee of the Board established under section 18, 19 or 20;

“establishment day” means the day appointed under section 7;

“local authority” has the same meaning as it has in the Local Government Act 2001;

“Oireachtas Committee” means a committee appointed by either House of the Oireachtas or jointly by both Houses of the Oireachtas (or a subcommittee of such a committee) other than—

(a) the Committee of Dáil Éireann established under the Standing Orders of Dáil Éireann to examine and report to Dáil Éireann on the appropriation accounts and reports of the Comptroller and Auditor General, or

(b) the Committee on Members’ Interests of Dáil Éireann or the Committee on Members’ Interests of Seanad Éireann.

7.. Establishment day

7. The Minister shall, by order, appoint a day to be the establishment day for the purposes of this Act.

8.. An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir

8. (1) There shall stand established on the establishment day a body which shall be known as An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir (in this Act referred to as the “Authority”) to perform the functions conferred on it by or under this Act.

(2) The Authority—

(a) shall be a body corporate with perpetual succession and an official seal,

(b) may sue and be sued in its corporate name, and

(c) may acquire, hold and dispose of land or an interest in land or any other property, with the consent of the Minister and the Minister for Public Expenditure, National Development Plan Delivery and Reform.

(3) The official seal of the Authority shall be authenticated—

(a) by the signature of any 2 members of the Board, or

(b) by the signatures—

(i) of a member of the Board, and

(ii) of a member of staff of the Authority authorised to act for that purpose by the Board.

(4) Judicial notice shall be taken of the seal of the Authority, and any document purporting to be an instrument made by the Authority, and to be sealed with the seal of the Authority authenticated in accordance with subsection (3), shall, unless the contrary is shown, be received in evidence and be deemed to be such an instrument without further proof.

(5) Any contract or instrument which, if entered into or executed by an individual, would not require to be under seal may be entered into or executed on behalf of the Authority by any person generally or specially authorised by the Authority for that purpose.

9.. Functions of Authority

9. (1) The Authority shall, in addition to the carrying out of other functions conferred on it by this Act—

(a) establish, maintain and control generally the automatic enrolment retirement savings system,

(b) arrange for the enrolment and re-enrolment of participants in the automatic enrolment retirement savings system in accordance with Chapter 2 of Part 3,

(c) arrange for the collection of contributions in accordance with Chapter 3 of Part 3,

(d) arrange for the establishment and maintenance of accounts for participants’ retirement savings and the provision of communications and services in relation to those accounts,

(e) arrange for the investment of contributions with investment management providers in accordance with the appropriate risk levels and investment rules under Part 4,

(f) facilitate the payment of retirement savings out of participants’ accounts in accordance with Part 5,

(g) monitor and enforce compliance with this Act, and

(h) undertake, commission or assist in research projects and other activities relating to retirement savings services and the level of retirement savings in the State, which in the opinion of the Authority may promote an improvement in those services and public awareness of them, and make recommendations to the Minister arising from those projects or activities.

(2) The Authority shall perform its functions in the way that appears to it best calculated—

(a) to provide a high quality retirement savings system that—

(i) operates in the best interests of participants, and

(ii) is digital by default,

and

(b) to provide for the management of participants’ retirement savings with appropriate care and judgement.

(3) Subject to this Act, the Authority shall be independent in the performance of its functions.

(4) The Authority may perform any of its functions through or by any member of the staff of the Authority authorised in that behalf by the Authority.

(5) The Authority may perform any of its functions through or by any other persons authorised in that behalf by the Authority.

(6) The Authority shall have all such powers as are necessary or expedient for the performance of its functions.

Chapter 2

10.. Establishment of Board

10. (1) The Authority shall have a board (in this Act referred to as the “Board”) established under this Act to perform the functions of the Authority.

(2) The Board shall, in addition to the other functions conferred on it by this Act—

(a) satisfy itself that appropriate systems, procedures and practices are in place for the internal performance management and accountability of the Authority in respect of—

(i) the performance of its functions,

(ii) the achievement of the objectives in the statement of strategy under section 37, and

(iii) the achievement of the performance targets in the annual plan under section 38,

and

(b) establish and implement arrangements for the management of the performance of the chief executive.

(3) The Board shall be accountable to the Minister for the due performance of its functions.

(4) The Board may delegate in writing to a committee of the Board or the chief executive any of the functions of the Authority or the Board, other than the functions under subsection (2).

(5) If a function of the Authority or the Board is delegated to the chief executive under subsection (4), the delegation remains in force until the Board revokes the delegation by notice in writing given to the chief executive.

(6) The Board shall inform the Minister in writing of any matter that it considers to require the Minister’s attention.

(7) The Board shall retain in its possession the official seal of the Authority.

11.. Membership of Board

11. (1) The Board shall consist of such number of members appointed by the Minister as the Minister may from time to time determine.

(2) The number of members appointed by the Minister shall be not fewer than 5 and not more than 8.

(3) The Minister shall designate one of the members as chairperson.

(4) In appointing persons to be members of the Board, the Minister shall have regard to the desirability of their having knowledge or experience in matters connected to—

(a) the functions of the Authority, and

(b) organisational governance, management, financial administration and financial investment.

(5) Of the members of the Board, other than the chairperson—

(a) one shall be a person who has, in the opinion of the Minister, knowledge or experience in matters relating to the interests of employees, and

(b) one shall be a person who has, in the opinion of the Minister, knowledge or experience in matters relating to the interests of employers.

(6) The duties imposed on members of the Board in the performance of their functions under this Act shall be owed by them to the Authority and the Authority alone.

(7) The Minister shall, in so far as is practicable, endeavour to ensure that among the members of the Board there is an equitable balance between men and women.

(8) If a member of the Board ceases to be a member in any way other than on the expiry of the member’s term of office, the Minister shall, as soon as is practicable, appoint another person to fill the vacancy.

(9) The Authority shall, as soon as is practicable after a person is appointed as a member of the Board, publish in Iris Oifigiúil the name of the person so appointed.

12.. Term of office

12. (1) Subject to subsection (3), a member shall hold office for such term, not exceeding 4 years from the date of his or her appointment, as the Minister determines.

(2) A member of the Board shall hold office until his or her term of office expires, unless he or she ceases to be a member under any other provision of this Part.

(3) The Minister shall ensure that, of the members of the Board first constituted under this section—

(a) 4 members are appointed for a term of office of 3 years from the date of appointment,

(b) 3 members are appointed for a term of office of 4 years from the date of appointment, and

(c) the member who is first appointed chairperson is appointed for a term of office of 4 years from the date of appointment.

(4) The chairperson shall hold office as chairperson for 4 years or until the end of his or her term of office as a member of the Board, whichever is the earlier.

(5) Subject to subsection (6), a member of the Board whose term of office expires or is due to expire by the effluxion of time may be reappointed to the Board under this subsection—

(a) for not more than 2 terms, in the case of a person first appointed under section 11(8), or

(b) for one term only, in any other case.

(6) Subject to subsection (7), a person may not be reappointed under subsection (5) for a term that would result in the person serving for a period of more than 8 years.

(7) Where any term of office for which a person has been reappointed under subsection (5) expires or is due to expire by the effluxion of time, and the Minister is satisfied that exceptional circumstances exist, the Minister may, at the request of the Board, reappoint the person for one further term notwithstanding that the further term may result in the person serving for a period of more than 8 years.

13.. Conditions of membership of Board

13. (1) Subject to section 21, a member of the Board shall hold office on such terms and conditions as the Minister, with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform, determines.

(2) The Minister may, with the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform, determine that the chairperson shall be paid additional remuneration or allowances on account of his or her responsibilities as chairperson.

(3) A member may at any time by notice in writing to the Minister—

(a) resign from the Board, or

(b) in the case of the chairperson, with or without resigning from the Board, resign from the office of chairperson.

(4) A resignation under subsection (3) takes effect on the date specified in the notice to the Minister, or on the date on which the Minister receives the notice, whichever is the later.

14.. Membership of either House of Oireachtas, European Parliament or local authority

14. A person is disqualified for membership of the Board while—

(a) nominated as a member of Seanad Éireann,

(b) elected as a member of either House of the Oireachtas or of the European Parliament,

(c) entitled under the Standing Orders of either House of the Oireachtas to sit in that House,

(d) regarded pursuant to Part XIII of the Second Schedule to the European Parliament Elections Act 1997 as having been elected to be a member of the European Parliament,

(e) a member of a local authority, or

(f) entitled under the standing orders of a local authority to sit as a member of that local authority.

15.. Ineligibility to become and disqualification to act as member of Board

15. (1) A person is not eligible for appointment as a member of the Board, and a person who has been appointed shall cease to be a member, if he or she—

(a) is or becomes a member of staff of the Authority,

(b) is convicted on indictment of an offence, or is convicted outside the State of an offence consisting of acts or omissions which would constitute an offence triable on indictment if done or made in the State,

(c) is convicted of an offence involving fraud or dishonesty,

(d) has a declaration made against him or her under section 819 of the Companies Act 2014 or is deemed to be subject to such a declaration by virtue of Chapter 5 of Part 14 of that Act,

(e) is subject to, or is deemed to be subject to, a disqualification order within the meaning of Chapter 4 of Part 14 of the Companies Act 2014 whether by virtue of that Chapter or of any other provision of that Act,

(f) makes a composition or arrangement with his or her creditors, or

(g) is removed by a competent authority for any reason (other than failure to pay a fee) from any register established for the purpose of registering members of a profession in the State or another jurisdiction.

(2) A person is not eligible for appointment as a member of the Board if he or she is adjudicated bankrupt and such bankruptcy has not been annulled or discharged, and a person who has been appointed shall cease to be a member if he or she is adjudicated bankrupt.

16.. Removal of member of Board

16. (1) The Minister may, on the recommendation of the Board or of the Pensions Authority, remove a member of the Board from office if he or she is satisfied that—

(a) the member has, without reasonable excuse, failed to discharge the functions of the office,

(b) the member has become incapable through ill-health or otherwise of performing the functions of the office,