Pensions (Amendment) Act, 2002

Chapter 6

Amendments to Part VI of Principal Act

Amendment of section 59 of Principal Act.

42.—The following section is substituted for section 59 of the Principal Act:

“General duties of trustees of schemes.

59.—(1) Without prejudice to the duties of trustees generally and in addition to complying with the other requirements of this Act, the duties of trustees of schemes shall include the following:

(a) to ensure, in so far as is reasonable, that the contributions payable by the employer and the members of the scheme, where appropriate, are received and that the sums referred to in subsection (1) or (2) of section 58A are invested in accordance with paragraph (b) within 10 days of the latest date on which those sums should have been remitted or paid by the employer under subsection (1) or (2), as the case may be, of section 58A;

(b) subject to subsection (2), to provide for the proper investment of the resources of the scheme in accordance with the rules of the scheme;

(c) where appropriate, to make arrangements for the payment of the benefits as provided for under the rules of the scheme as they become due, whether in the State or in any other Member State, net of any taxes and transaction charges which may be applicable;

(d) to ensure that proper membership and financial records are kept;

(e) if the scheme is wound up, to apply the resources of the scheme in discharging its liabilities without undue delay in accordance with the rules of the scheme and, where applicable, with section 48.

(2) Where, and to the extent that, the rules of a scheme provide for the trustees to invest the resources of the scheme in accordance with directions given by the members—

(a) the trustees shall—

(i) determine in accordance with the rules what different types of investments of those resources could be made at the direction of the members;

(ii) determine in accordance with the rules how those resources are to be invested in cases where the members give no direction;

(iii) in such circumstances and within such time limits as may be prescribed, furnish to the members such information as may be prescribed in relation to the determinations made by them in relation to the matters referred to in subparagraphs (i) and (ii), and

(iv) take such steps as are reasonable to ensure that the members have any further information necessary to enable the members to make informed decisions with regard to the giving of directions in relation to the different types of investment referred to in subparagraph (i),


(b) where the trustees comply with the requirements of paragraph (a), they shall incur no liability solely by reason of giving effect to the directions of the members given in accordance with the rules.”.