Social Welfare and Pensions (No. 2) Act 2013

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Insertion into Act of 1990 of new section 48A

10. The Act of 1990 is amended by inserting the following new section after section 48:

“Payment of certain amounts by Minister for Finance where resources of relevant scheme are not sufficient to discharge liabilities in respect of benefits referred to in section 48(1D)

48A. (1) Where the resources of a relevant scheme referred to in section 48(1D) are not sufficient to discharge the liabilities, referred to in section 48(1D), of that scheme in respect of the benefits referred to in section 48(1D)—

(a) the trustees of that scheme shall direct the actuary appointed to that scheme to prepare a statement of the difference between those liabilities in respect of the benefits referred to in section 48(1D) and the resources of that scheme that are available to discharge those liabilities in respect of those benefits, and

(b) the statement referred to in paragraph (a) shall—

(i) include a statement of the amount required to discharge the liabilities in respect of the benefits referred to in that paragraph (in this section referred to as the ‘relevant amount’), and

(ii) include a statement by the actuary appointed to the relevant scheme that the relevant amount is the amount required for the discharge of the liabilities of that relevant scheme in respect of the benefits referred to in section 48(1D).

(2) The trustees referred to in subsection (1) shall—

(a) apply to the Board to certify the relevant amount concerned, and

(b) submit a copy of the statement referred to in subsection (1) with that application.

(3) Where the Board is satisfied that—

(a) the statement referred to in subsection (1) has been prepared in accordance with guidelines and guidance notes prescribed in regulations made by the Minister under subsection (11), and

(b) the relevant amount has been calculated in accordance with those guidelines and guidance notes,

the Board shall certify the relevant amount as being the amount required for the discharge of the liabilities of the relevant scheme concerned in respect of the benefits referred to in section 48(1D) and shall, when certifying the relevant amount, have regard to the guidelines made by the Minister under subsection (10)(b).

(4) Where the Board has certified a relevant amount under subsection (3) (in this section referred to as the ‘certified amount’), the trustees shall—

(a) apply to the Minister to request the payment by the Minister for Finance of an amount equal to the certified amount for the purpose of the discharge by the trustees of the liabilities of the relevant scheme in respect of the benefits referred to in section 48(1D), and

(b) include in such application the statement referred to in subsection (1).

(5) Where, in respect of an application under subsection (4), the Minister is satisfied that the certified amount has been certified in accordance with subsection (3), the Minister shall request the Minister for Finance to pay out of the Central Fund to the trustees of the relevant scheme concerned, an amount equal to the certified amount for the purpose of the discharge, by the trustees of that relevant scheme, of the liabilities of that scheme in respect of the benefits referred to in section 48(1D).

(6) The Minister for Finance shall, in consultation with the Minister for Public Expenditure and Reform, approve the request made under subsection (5).

(7) Where a request has been approved under subsection (6), the Minister for Finance shall pay out of the Central Fund to the trustees of the relevant scheme concerned an amount equal to the certified amount for the purpose of the discharge, by the trustees of that scheme, of the liabilities of that scheme in respect of the benefits referred to in section 48(1D).

(8) Where the Minister for Finance pays an amount to the trustees of a relevant scheme under subsection (7), the trustees of that scheme shall use that amount for the purpose of discharging the liabilities of the relevant scheme for the benefits referred to in section 48(1D).

(9) The amount referred to in subsection (7) that is required by the Minister for Finance for the making of a payment under that subsection shall be paid out of the Central Fund or the growing product thereof.

(10) The Minister shall—

(a) make, in consultation with the Board, guidelines in respect of the preparation of the statement referred to in subsection (1) and an application under subsection (2), and

(b) make guidelines in respect of the certification by the Board of a relevant amount under subsection (3).

(11) The Minister may make regulations requiring the trustees of a relevant scheme to comply with—

(a) guidelines or guidance notes issued by the Board under section 10, and

(b) guidelines made by the Minister under subsection (10)(a),

in respect of the preparation of the statement referred to in subsection (1) and an application by the trustees under subsection (2).

(12) The Minister shall, 12 months after the passing of the Social Welfare and Pensions (No. 2) Act 2013 and on each anniversary of such passing, prepare a report on the applications made under subsection (4), the requests made by the Minister to the Minister for Finance under subsection (5) and the amounts paid out of the Central Fund under subsection (7) during the preceding 12 months and shall, as soon as practicable, after the preparation of the report, cause a copy of the report to be laid before each House of the Oireachtas.”.