Pensions (Amendment) Act, 2002

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Interpretation (Part X).

91.—(1) In this Part, unless the context otherwise requires—

‘administrator’ means a person to whom a PRSA provider delegates in pursuance of this Part its administrative functions in relation to a PRSA;

‘applicant’ means a person who applies for approval of a PRSA product under section 94;

‘Central Bank’ means the Central Bank of Ireland;

‘charges’ includes—

(a) fees, levies or penalties imposed by the PRSA provider;

(b) fees, levies or penalties imposed or made on or in relation to any pooled fund held for the purposes of a PRSA and on or in relation to any pooled fund held within such a pooled fund;

(c) the net proceeds of the process commonly known as stocklending (involving the sale of assets with an agreement for repurchase) of the assets held (including those held within any pooled fund and any pooled fund held within such a pooled fund) for the purposes of a PRSA that do not accrue to the PRSA contributor;

(d) the proceeds of any rounding of unit prices of the pooled funds held for the purposes of a PRSA and on any pooled fund held within those pooled funds that do not accrue to the PRSA contributor;

(e) any deductions from the assets to meet the costs of auditors or custodians, including such deductions from the assets of the pooled funds held for the purposes of a PRSA and from any pooled fund held within those pooled funds;

(f) any value-added tax on the charges;

(g) the costs of transactions in investments (including transactions of investments held within any pooled fund and any pooled fund held within those pooled funds) that are incurred in excess of those that would be incurred on a competitive arm's length basis;

(h) any reduction in the interest rate received on deposits or investment return obtained on other assets below that which would be obtainable on a competitive arm's length basis from other comparable deposits or assets;

(i) any deduction from the PRSA assets or a contribution for the benefit of the PRSA provider, any intermediary, including an investment business firm authorised under the Investment Intermediaries Act, 1995 , or a member firm authorised under the Stock Exchange Act, 1995 , or the employer;

(j) the charges on any insurance contract held as a PRSA asset that would be included within illustrations of projected benefits produced in accordance with the Life Assurance (Provision of Information) Regulations 2001 ( S.I. No. 15 of 2001 );

(k) such amounts in respect of such other matters as may be prescribed;

but does not include—

(i) any stamp duty or other similar turnover taxes or levies imposed by or under any enactment that have been charged or made in relation to the purchase or sale of investments;

(ii) any irrecoverable withholding taxes on investment income;

(iii) any fees or levies imposed by or under any enactment that are deducted from the assets of the PRSA contributor or from the assets of the pooled funds held for the purposes of a PRSA and from any pooled fund held within those pooled funds;

(iv) the costs of transactions in investments (including those held within any pooled fund and any pooled fund held within those pooled funds) that are incurred on a competitive arm's length basis;

(v) the costs of routine property maintenance and collection of rents due in respect of property investments (including those held within any pooled fund and any pooled fund held within those pooled funds) incurred on a competitive arm's length basis;

(vi) where an insurance contract is held as a PRSA asset, any deductions made solely for the purposes of smoothing the investment returns allocated to individual policies;

(vii) such amounts in respect of such other matters as may be prescribed;

and ‘charge’ shall have a similar meaning;

‘collective investment scheme’ means—

(a) a unit trust scheme authorised by the Central Bank under the Unit Trusts Act, 1990 ;

(b) a designated investment company authorised by the Central Bank under Part XIII of the Companies Act, 1990 ;

(c) a collective investment scheme authorised by the Central Bank under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 1989 ( S.I. No. 78 of 1989 );

(d) a collective investment scheme established in another Member State that has been authorised in accordance with Council Directive 85/611/EEC of 20 December 1985;

(e) the business of an investment limited partnership established under the Investment Limited Partnerships Act, 1994 ; or

(f) any other collective investment scheme established in another state, the marketing of the units of which to members of the public in the State is approved by the Central Bank;

but does not include a collective investment scheme that is marketed solely to investors of such class or classes as may be determined by the Central Bank;

‘contribution’ means a payment made directly or indirectly by or on behalf of a contributor to the relevant custodian account of a PRSA provider for investment on the contributor's behalf in accordance with the terms of a PRSA contract;

‘contributor’ means an individual who enters into a PRSA contract with a PRSA provider and shall include an individual in whose name a PRSA contract is concluded by the trustees of a scheme for the purpose of distributing the appropriate assets of the scheme on a winding-up;

‘Court’ means the High Court;

‘credit institution’ means a credit institution within the meaning of Article 1 of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000, relating to the taking up and pursuit of the business of credit institutions;

‘custodian’ means—

(a) a credit institution authorised to carry on business in the State with a paid-up share capital of at least €6.35 million or its equivalent in foreign currency; or

(b) a branch, established in the State, of a credit institution with a paid-up share capital of at least €6.35 million or its equivalent in foreign currency; or

(c) a company incorporated in the State which—

(i) is wholly owned by a credit institution provided the liabilities of the custodian are guaranteed by the said credit institution and the said credit institution has paid-up share capital of at least €6.35 million or its equivalent in a foreign currency; or

(ii) is wholly owned by an institution in a state other than a Member State which is deemed by the Central Bank to be the equivalent of a credit institution to which the Directive would apply, provided the liabilities of the custodian are guaranteed by the said institution and the said institution has a paid-up share capital of at least €6.35 million or its equivalent in a foreign currency; or

(iii) is wholly owned by an institution or company either in a Member State or in a state other than a Member State which is deemed by the Central Bank to be an institution or company which provides contributors with protection equivalent to that provided by a custodian under paragraph (a) or (b) of this definition or subparagraph (i) or (ii) of this paragraph and provided the liabilities of the company acting as custodian are guaranteed by the said institution or company and that institution or company has a paid-up share capital of at least €6.35 million or its equivalent in a foreign currency;

and which receives and holds the assets of Personal Retirement Savings Accounts by virtue of a custodian contract;

‘custodian account’ means a financial arrangement under which a custodian keeps in its custody the cash, securities and other assets (other than assets consisting of a policy of insurance or units or shares in a collective investment scheme) being all the cash, securities and other assets that have been remitted under a PRSA contract to the custodian (and, for the purposes of this Part, a custodian account may include the use by the custodian of other financial institutions, sub-custodians or nominees for the safekeeping of the said cash, securities and other assets);

‘custodian contract’ means a contract concluded between a PRSA provider and a custodian whereby contributions and all other assets of a PRSA (other than assets consisting of a policy of insurance or units or shares in a collective investment scheme) are transmitted to the custodian to hold on behalf of the PRSA provider;

‘default investment strategy’ means an investment strategy established by a PRSA provider, in accordance with section 103, for the investment of the contributions of contributors;

‘investment manager’ means—

(a) an investment firm authorised in accordance with Council Directive 93/22/EEC of 10 May 1993 by a competent authority where the firm's authorisation permits it to engage in the proposed activities as an investment manager under this Part; and

(b) an insurance undertaking authorised to transact insurance business in the State, whether by establishment, branch or provision of services, that falls within any of the Classes of Insurance I, III or VII as set out in the Annex to the Council Directive 79/267/EEC of 5 March 1979; and

(c) a credit institution,

and to whom a PRSA provider has by contract delegated in whole or in part its investment functions under this Part (but such delegation shall, in the case of an undertaking referred to in paragraph (b) of this definition, be restricted to activities comprising the effecting and carrying out of life assurance policies);

‘payroll deduction’ means a deduction from the salary or wages of an employee for the purposes of making contributions in respect of the employee to a PRSA;

‘Personal Retirement Savings Account’ or ‘PRSA’ means a personal retirement savings account established by a contributor with a PRSA provider under the terms of a PRSA contract;

‘Personal Retirement Savings Account actuary’ or ‘PRSA actuary’ means a person who is employed by a PRSA provider or has entered into a contractual arrangement with a PRSA provider to provide actuarial services in respect of a PRSA product or products and who complies with such requirements for such employment or such appointment as such an actuary as the Minister may determine from time to time and specifies in regulations;

‘Personal Retirement Savings Account assets’ or ‘PRSA assets’ means the assets held on behalf of a contributor in a PRSA and includes the value of any contributions made to that PRSA by any employer of the contributor;

‘Personal Retirement Savings Account contract’ or ‘PRSA contract’ means a contract entered into between a PRSA provider and a contributor in respect of a PRSA product which contract complies with this Part;

‘Personal Retirement Savings Account product’ or ‘PRSA product’ has the meaning assigned to it by section 102;

‘Personal Retirement Savings Account provider’ or ‘PRSA provider’ means—

(a) an investment firm authorised in accordance with Council Directive 93/22/EEC of 10 May 1993 by a competent authority where the firm's authorisation permits it to engage in the proposed activities as such a provider under this Part; and

(b) an insurance undertaking authorised to transact insurance business in the State, whether by establishment, branch or provision of services, that falls within any of the Classes of Insurance I, III or VII as set out in the Annex to the Council Directive 79/267/EEC of 5 March 1979; and

(c) a credit institution,

which produces, markets or sells Personal Retirement Savings Account products;

‘pooled fund’ means—

(a) a collective investment scheme; or

(b) an internal linked fund the benefit of which is made available by means of a contract of insurance of an insurance undertaking authorised to transact investment business in the State, whether by establishment, branch, or provision of services, that falls within Class III as set out in the Annex to the Council Directive 79/267/EEC of 5 March 1979;

‘Standard Personal Retirement Savings Account’ or ‘Standard PRSA’ means a PRSA expressed, in the PRSA contract relating to it, to be a ‘Standard Personal Retirement Savings Account’ or ‘Standard PRSA’;

‘Statement of Reasonable Projection’ has the meaning assigned to it by section 116.

(2) Without prejudice to subsection (5), a notice, direction or other document under this Part or regulations made thereunder shall, unless otherwise specified in this Part or the regulations concerned and subject to subsection (3), be addressed to the person concerned by name and may be served on or given to the person in one of the following ways—

(a) by delivering it to the person, or

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

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

(d) in the case of an officer or employee of a PRSA provider, whether authorised to receive the notice, direction or other document concerned or not, by sending it to him by post in a prepaid letter to the address of the principal office of that PRSA provider.

(3) Where a notice, direction or other document under this Part or regulations made thereunder is to be served on or given to a person who is the owner or occupier of land and the name of the person cannot be ascertained by reasonable inquiry, it may be addressed to the person by using the words the owner or, as the case may require, the occupier.

(4) For the purposes of subsection (2), a company within the meaning of the Companies Acts, 1963 to 2001, shall be deemed to be ordinarily resident at its registered office, and every other body corporate and every unincorporated body shall be deemed to be ordinarily resident at its principal office or place of business.

(5) References in this Part (other than in section 112(1), in so far as it relates to the furnishing of the information concerned under paragraph (a) thereof, and section 114(1)) to the provision of information by a PRSA provider to a contributor or a person referred to in section 111(1) (a ‘prospective contributor’) shall, unless the context otherwise requires, be construed as including references to the provision of the information by the PRSA provider to the contributor or prospective contributor—

(a) by means of any electronic method,

(b) by means of telephone, or

(c) by any other means provided for in the PRSA contract concerned or as may otherwise be agreed between the provider and the contributor or prospective contributor,

but the use of any of those means for that purpose shall not relieve the provider of the obligation to ensure that the contributor or prospective contributor receives the information.

Application required for approval of PRSA product.

92.—(1) A person who wishes to produce, market or sell a PRSA product shall make an application to the Board and the Revenue Commissioners for the grant, under section 94, of approval by the Board and the Revenue Commissioners of the product.

(2) The approval of a PRSA product under section 94 shall not constitute a warranty as to the solvency of the person who will produce the product and neither the Board nor the Revenue Commissioners shall—

(a) be liable in respect of any losses incurred through the insolvency or default of a person who produces a product that has been so approved, or

(b) have any duty to any contributor regarding the investment performance of a PRSA product.

Procedures for the granting of approval of PRSA products.

93.—The procedures to be followed in respect of the granting of approval of PRSA products under section 94 shall be determined by the Board.

Grant of approval of a PRSA product and code of conduct.

94.—(1) An application for approval of a PRSA product under this section shall—

(a) be made in writing and signed by two directors of the applicant and be in such form and contain such particulars as the Board and the Revenue Commissioners may from time to time determine, and

(b) be accompanied by a certificate provided by a PRSA actuary and two directors of the applicant stating that it is the opinion of the actuary and those directors that the product complies with the requirements of this Part and any regulations made under section 103(2).

(2) A product shall not be approved under this section by the Board unless the applicant satisfies the Board—

(a) that the product complies with the requirements of this Part and any regulations made under section 103(2).

(b) that, as regards the producing, marketing or selling by the applicant of the product, the applicant—

(i) has adequate levels of expertise to carry on those activities,

(ii) will establish and follow proper procedures so as to enable the Board to be supplied with all information necessary for the performance by the Board of its supervisory functions in relation to those activities and to enable members of the public to be supplied with any information which the Board may specify, and

(iii) has organised the structure of its business, in so far as the carrying on of those activities is concerned, in a manner that will facilitate the Board in performing its supervisory functions in relation to those activities, and

(c) in case the applicant is an undertaking referred to in paragraph (b) of the definition of ‘PRSA provider’ in section 91(1), the activities referred to in paragraph (b)(i) will be carried on solely for the purpose of the effecting and carrying out by it of life assurance policies.

(3) A product shall not be approved under this section by the Revenue Commissioners unless—

(a) the Board has notified them that it has approved the product under subsection (2), and

(b) in accordance with the provisions of Chapter 2A (inserted by section 4 of this Act) of Part 30 of the Taxes Consolidation Act, 1997 , they approve the product for the purposes of this subsection.

(4) If an application for approval under this section relates to two or more products, the Board and the Revenue Commissioners may approve or refuse to approve one or more of the products as they consider appropriate.

(5) The Board shall prepare, and amend from time to time as it considers appropriate, a code of conduct with respect to the producing, marketing and selling by PRSA providers of PRSA products and may attach to any approval granted by it and the Revenue Commissioners under this section (whether at the time of the grant of approval or any time thereafter) a condition requiring the relevant PRSA provider to comply, in respect of the product, with the code.

(6) In preparing a code under subsection (5), the Board shall have regard to—

(a) the need to provide for the protection of PRSA contributors, and

(b) the need to provide for effective supervision of the producing, marketing and selling of PRSA products.

Misleading statements.

95.—Any person who, in purported compliance with section 94(1), makes a statement knowing it to be false or misleading in a material particular shall be guilty of an offence.

Application requirements.

96.—(1) An applicant shall comply with the following provisions—

(a) the applicant shall, unless it has satisfied the Board that it intends to provide and is capable of providing such a service itself, enter into a contractual arrangement with one or more investment managers to provide an investment service in respect of its PRSA product or products in accordance with this Part in the event that those products are approved by the Board,

(b) the applicant shall enter into a contractual arrangement with an auditor to provide services for the purposes of section 118 in respect of the applicant's PRSA products in the event that those PRSA products are approved by the Board,

(c) the applicant shall, unless it has satisfied the Board that it intends to provide and is capable of providing such services itself, enter into a contractual arrangement with one or more administrators to provide administration services in respect of its PRSA product or products in accordance with this Part in the event that those products are approved by the Board,

(d) unless the applicant employs a PRSA actuary under a contract of service, the applicant shall enter into a contractual arrangement with a PRSA actuary to provide services in respect of the applicant's PRSA product or products and its business in accordance with this Part in the event that those products are approved by the Board,

(e) subject to subsections (2) and (3), the applicant shall enter into a custodian contract with one or more than one custodian to hold moneys paid by or on behalf of PRSA contributors in accordance with this Part under PRSA contracts and the PRSA assets relating to those PRSA contracts in the event that the applicant's PRSA products are approved by the Board,

(f) the applicant shall, at the time of application, pay to the Board such fee as may be prescribed.

(2) If the PRSA provider is an undertaking referred to in paragraph (b) of the definition of ‘PRSA provider’ in section 91(1) (and, accordingly, its activities as such a provider are confined to activities for the purposes of the effecting and carrying out by it of life assurance policies)—

(a) paragraphs (b) and (e) of subsection (1) shall not apply to it, and

(b) the definition of ‘contribution’ in section 91(1), and section 107(2) and subsections (3), (4) and (5) of section 121 shall, in relation to it, apply as if the references in that definition and that section and those subsections to ‘the relevant custodian account of a PRSA provider’ were references to ‘a PRSA provider’.

(3) If a PRSA provider satisfies the Board that it is capable of providing the services referred to in paragraph (e) of subsection (1) in respect of its PRSA products and that it intends to do so, that paragraph (e) shall not apply to it.

(4) All information concerning the structure of any PRSA and description of any PRSA product which an applicant intends to market and sell as the Board may require shall be submitted to the Board at the time of application for approval of the PRSA product.

(5) The Board may at any time prior to the grant or refusal of approval of a PRSA product request the applicant to furnish further information to it in relation to the application.

(6) An applicant shall be informed by the Board whether or not approval of the PRSA product concerned has been granted by it—

(a) within 3 months after the receipt of the application, or

(b) where further information in relation to the application has been sought by the Board under subsection (5), within 3 months after the receipt by the Board of the further information.

(7) (a) Where the Board refuses an application for approval under section 94 the applicant may appeal to the Court in a summary manner against that refusal.

(b) The sole ground upon which such an appeal may be taken is that the Board, did not, in a material respect, comply with the requirements of this Part or regulations in dealing with the said application.

(c) On the hearing of such an appeal, the Court—

(i) if it is satisfied that the said requirements have been complied with, shall confirm the decision of the Board, and

(ii) if it is satisfied that the said requirements have not been complied with in any material respect, shall set aside the decision of the Board and remit the matter to the Board who shall thereupon reconsider the matter and make a decision in accordance with those requirements.

Suspension and withdrawal of approval of a PRSA product.

97.—(1) The Board, after, where appropriate, consultation with the Revenue Commissioners, may at any time suspend or withdraw the approval under section 94 of a PRSA product if the Board is satisfied that the relevant PRSA provider—

(a) has expressly requested the withdrawal of the approval;

(b) has ceased to carry on the business of PRSA provider for more than 6 months;

(c) no longer complies with the requirements of this Part or regulations thereunder for the granting of an approval under section 94 in respect of products produced by it;

(d) has failed, to a serious extent, to comply with its obligations under this Part or regulations thereunder; or

(e) if, since the grant of the approval, the circumstances relevant to the grant have changed and are such that, if an application for the approval of the PRSA product were made in the changed circumstances, it would be refused by either the Board or the Revenue Commissioners or, if in the light of information available to the Board at that time, the Board, on any other grounds of a substantial nature, considers it appropriate to suspend or withdraw the approval.

(2) Whenever the Board suspends or withdraws approval of a PRSA product under subsection (1) (other than in pursuance of a request by the relevant PRSA provider to do so) it shall notify the relevant PRSA provider in writing that it has suspended or withdrawn the approval.

(3) The Board may, if it is satisfied that the grounds referred to in paragraph (c) or (d) of subsection (1) exist, require the relevant PRSA provider not to accept new contributors or further contributions in respect of the PRSA product or products concerned during such period as the Board may determine and the PRSA provider shall comply with that requirement.

(4) Whenever approval is suspended or withdrawn by virtue of subsection (1) the relevant PRSA provider shall immediately inform in writing any contributor who may be affected by such suspension or withdrawal of that suspension or withdrawal.

(5) On a PRSA provider being notified under subsection (2) that approval of the PRSA product or products concerned has been withdrawn, it shall immediately transfer or make arrangements without undue delay for the transfer of the PRSA assets, the subject of each such product, to such other PRSA provider or providers as may be nominated by the contributors concerned. In the event of a contributor not making such a nomination within a reasonable period of time, then such transfer shall be made to such PRSA provider or providers as shall be approved by the Board.

(6) Subject to subsections (5) and (8), whenever approval has been withdrawn by virtue of subsection (1), all PRSA contracts to which the relevant PRSA provider at the time of such withdrawal is a party may be terminated by it but without any imposition of a penalty on the relevant PRSA contributors.

(7) The Minister may by regulations enable the Board to suspend or withdraw an approval in circumstances specified in the regulations, being circumstances additional to those specified in subsection (1), and may specify in these regulations terms, conditions and restrictions upon and subject to which the power so conferred on the Board may be exercised.

(8) The Minister may by regulations require a PRSA provider to notify the Board, as soon as may be after the event's occurrence, of the fact that an event specified in the regulations has occurred.

(9) Where approval of a PRSA product is withdrawn, the relevant PRSA provider shall continue to be subject to the duties and obligations imposed by this Act and regulations thereunder and any other conditions or requirements imposed by the Board pursuant to this Act or such regulations until all the liabilities, duties and obligations of the said PRSA provider as such a provider have been discharged to the satisfaction of the Board.

(10) The Board shall publish notice of withdrawal of approval of a PRSA product in Iris Oifigiúil and in one or more newspapers circulating in the State within 28 days of such withdrawal.

(11) Where the Board gives a direction or makes a requirement of a PRSA provider pursuant to this Act or regulations thereunder, the Board may, if it is satisfied that the direction or requirement has not been complied with, apply to the Court and the Court may confirm, vary or set aside the direction or requirement on such terms and for such period as the Court thinks fit.

(12) (a) Where the Board suspends or withdraws an approval, the relevant PRSA provider may appeal to the Court in a summary manner against that suspension or withdrawal.

(b) The sole ground upon which such an appeal may be taken is that the Board, did not, in a material respect, comply with the requirements of this Part or regulations thereunder in exercising the powers concerned.

(c) On the hearing of such an appeal, the Court—

(i) if it is satisfied that the said requirements have been complied with, shall confirm the decision of the Board, and

(ii) if it is satisfied that the said requirements have not been complied with in any material respect, shall set aside the decision of the Board and remit the matter to the Board who shall thereupon reconsider the matter and make a decision in accordance with those requirements.

Ownership of assets.

98.—(1) A contributor to a PRSA shall be the beneficial owner of the PRSA assets of that PRSA.

(2) No legal or equitable charge may subsist over the PRSA assets of a PRSA for so long as a contributor is, by virtue of subsection (1), the beneficial owner of them.

Reporting obligations of PRSA providers.

99.—(1) A PRSA provider shall prepare and deliver to the Board in respect of each period of 3 months—

(a) a report in relation to the PRSA business of the provider, and

(b) a return relating to the contributors to its PRSA products which shall include such personal information in relation to each such contributor as the Board may require for the purpose of meeting its obligations under section 117(1) relating to recording and maintaining statistics of contributors.

(2) Each return and report referred to in subsection (1) shall be signed by 2 directors of the PRSA provider and be in such form and contain such particulars and be delivered to the Board within such period as may be prescribed.

(3) A PRSA provider shall, within such period after the year concerned as may be prescribed, deliver to the Board, in respect of each financial year of the provider, its audited accounts.

(4) A contributor shall, if requested by the PRSA provider to do so, inform the PRSA provider of his personal public service number for the purpose of enabling the provider to comply with subsection (1)(b).

(5) A PRSA provider shall promptly notify the Board of any material fact or circumstance which relates to that PRSA provider or the conduct of its activities as such a provider which might reasonably influence the Board in determining whether or not to exercise the powers under section 97.

Unapproved PRSA products.

100.—A person shall not produce, market or sell a PRSA product which is not for the time being approved by the Board and the Revenue Commissioners under section 94.

PRSA products: supplemental provisions.

101.—(1) A product which does not comply with the requirements of this Part or regulations thereunder may not be marketed or sold as a PRSA product and the term ‘Personal Retirement Savings Account’ or ‘PRSA’ may not be applied to describe such product.

(2) None of the following terms, namely—

(a) ‘Personal Retirement Savings Account’ or ‘PRSA’,

(b) ‘Standard Personal Retirement Savings Account’ or ‘Standard PRSA’,

may be registered as a trademark.

(3) A PRSA contract shall indicate in general terms that, under and in accordance with Part XI of the Pensions Act, 1990 , it is the right of the contributor to refer a complaint or dispute under the contract to the Pensions Ombudsman.

(4) A PRSA contract shall provide for the payment of the PRSA assets to the contributor 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.

(5) The Investment Intermediaries Act, 1995 , is amended—

(a) in section 2(1), by the insertion in the definition of ‘investment instruments’, after paragraph (m), of the following:

‘(n) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990 ,’,

(b) in section 25(b)—

(i) by the deletion in subparagraph (vi) of ‘or’,

(ii) by the substitution in subparagraph (vii) of ‘policies, or’ for ‘policies.’, and

(iii) by the insertion after subparagraph (vii) of the following:

‘(viii) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990 .’,

and

(c) in section 26(1)(a) by the substitution of ‘tracker bonds, insurance policies or Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990 ’ for ‘tracker bonds or insurance policies’.

(6) Section 3 (1) of the Stock Exchange Act, 1995 , is amended, in the definition of ‘investment instruments’—

(a) by the deletion in paragraph (d) of ‘and’, and

(b) by the insertion after paragraph (d) of the following:

‘(dd) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act, 1990 , and’.

Personal Retirement Savings Account product and Review of Coverage.

102.—(1) In this Part ‘Personal Retirement Savings Account product’ or ‘PRSA product’ means an arrangement to which a PRSA provider is a party and under which it agrees, in consideration of payments to it, in the form of charges, to receive moneys from or on behalf of a contributor and invest those moneys in a manner nominated by the contributor or the PRSA provider.

(2) The Minister shall cause—

(a) a report in relation to the extent of the application of occupational and other pensions (other than pensions under the Social Welfare Acts), in respect of such matters as the Minister considers to be relevant, to the population to be prepared by such persons as the Minister may determine not later than 3 years after the commencement of section 3 of the Pensions (Amendment) Act, 2002, in respect of the insertion of section 121 into this Act and a copy of that report to be furnished to the Minister, and

(b) a copy of that report to be laid before each House of the Oireachtas within 6 months after its preparation.

Investment.

103.—(1) (a) A PRSA provider shall prepare a default investment strategy for each PRSA product which it operates.

(b) The PRSA provider shall implement the default investment strategy in respect of each PRSA contract except where a contributor elects in writing not to have the strategy applied to the PRSA contract to which he contributes, in which case the strategy shall not apply to that contract accordingly.

(2) The Minister may by regulations specify requirements to be complied with in relation to the investment of PRSA assets and such regulations shall, in relation to the default investment strategy referred to in subsection (1), provide for at least the following:

(a) subject to the provision referred to in paragraph (b), a requirement that such a strategy adopt an investment profile consistent with fulfilling the reasonable expectations of a typical contributor with respect to the said PRSA product for the purposes of making savings for retirement;

(b) notwithstanding such a requirement, a provision specifying that the elements of such a strategy may vary between individual contributors to PRSA products falling within the same class according to any known characteristics of those individual contributors and that contributors shall not be required to make decisions as to the choice of specific investments made by the PRSA provider or its investment managers.

(3) Subject to provision being made for temporary holdings in cash for liquidity purposes, a default investment strategy may only provide for investment in one or more pooled funds. Any such pooled fund shall have—

(a) appropriate diversification of investments, including appropriate diversification of credit and counterparty risks,

(b) appropriate liquidity of investments,

(c) charges that are readily identifiable,

(d) unit or share prices that are determined on most working days,

(e) unit or share prices that are widely published not less frequently than weekly, and

(f) unit or share prices that are determined with regard for equity between different generations of unitholders or shareholders.

(4) Subject to provision being made for temporary holdings in cash for liquidity purposes, a Standard PRSA may only have PRSA assets that comprise investments in one or more pooled funds. Any such pooled fund shall comply with each of the conditions specified in paragraphs (a) to (f) of subsection (3).

Charges.

104.—(1) The charges to be made under a PRSA contract shall neither—

(a) in the contract, nor

(b) in any promotional or other material relating to such a contract,

be expressed in cash terms.

(2) The charges made under a PRSA contract shall be calculated on one of the following bases:

(a) as a percentage of each contribution; or

(b) as a percentage of the value of the PRSA assets; or

(c) as a percentage of each contribution and a percentage of the value of the PRSA assets.

(3) The charges expressed as a percentage of each contribution may only vary between PRSA contracts offered by the same PRSA provider according to—

(a) the particular PRSA product,

(b) the method of distribution,

(c) the procedure for the payment of contributions, whether by cheque, payroll deduction, direct debit or other procedures,

(d) the investments held,

(e) the time that has elapsed since the contributor entered into the PRSA contract,

(f) the amount of the contribution.

(4) The charges expressed as a percentage of the value of PRSA assets may only vary between PRSA contracts offered by the same PRSA provider according to—

(a) the particular PRSA product,

(b) the method of distribution,

(c) the procedure for the payment of contributions, whether by cheque, payroll deduction, direct debit or other procedures,

(d) the investments held,

(e) the time that has elapsed since the contributor entered into the PRSA contract,

(f) the amount of PRSA assets to which the particular PRSA contract relates.

(5) The amount of any particular charge made under a Standard PRSA contract, being a charge made on the basis referred to in—

(a) paragraph (a) of subsection (2), or

(b) paragraph (c) of that subsection in so far as it relates to contributions,

shall not exceed 5 per cent of the amount of the contribution in respect of which it is made.

(6) The total amount of all charges made to the PRSA assets of a Standard PRSA, being charges made on the basis referred to in—

(a) paragraph (b) of subsection (2), or

(b) paragraph (c) of that subsection in so far as it relates to the value of those assets,

shall not exceed a rate of 1 per cent per annum of those assets.

(7) No initial charges, whether expressed as a percentage of contribution or otherwise, shall be made on transfers received from other pension arrangements entered into by a contributor.

(8) No charges shall be made under a PRSA contract in respect of a termination by a contributor of a PRSA contract to which he is party or in respect of a transfer of funds effected from such a contract.

(9) The Minister may by regulations require a PRSA provider to give notice (the period of which shall not be less than a period specified in the regulations) to a contributor or a prospective contributor of charges proposed to be made by it under a PRSA contract.

(10) The Minister may by regulations require that the amounts of charges made under a PRSA contract shall not be greater than such amounts as are specified in the regulations.

(11) A PRSA provider shall give prior notification of at least 2 months to a contributor of any changes to charges proposed to be made under a PRSA contract.

Suspension or variation of contributions.

105.—Any provision of a PRSA contract which purports to provide for the imposition of a penalty or charge on a contributor if he—

(a) suspends payment of a contribution or recommences the payment of a contribution the payment of which he has suspended, or

(b) varies the amount of his contributions,

shall be void.

Contributions.

106.—(1) A contributor who is in receipt of benefits under a PRSA may pay contributions into the PRSA.

(2) For the avoidance of doubt, contributions to a PRSA may be made by a person who has entered into a PRSA contract, notwithstanding that at the time of the making of the contributions, he is not employed or self-employed.

(3) An employer may pay, at his own expense, contributions into the employee's PRSA.

(4) Subject to subsection (5), a PRSA contract may specify that the amount of a contribution shall not be less than an amount specified in the contract.

(5) (a) The Minister may by regulations provide that the amount of a contribution shall not be less than an amount specified in the regulations (‘the minimum amount’) and shall not be greater than an amount specified in the regulations; any provision of a PRSA contract purporting to specify that the amount of a contribution shall not be less than an amount specified in the contract, being an amount which is greater than the minimum amount, shall be void.

(b) Unless otherwise permitted by regulations made under paragraph (a)—

(i) a PRSA contract shall not specify as the minimum amount of a contribution an amount exceeding €300 per annum,

(ii) without prejudice to subparagraph (i), a PRSA contract shall not specify as the minimum amount of a contribution an amount exceeding €10 in respect of each transaction carried out by electronic funds transfer (including direct debits) or exceeding €50 in respect of each transaction carried out by other methods of payment.

Security of contributions.

107.—(1) Prior to the investment of any payments made under a PRSA contract, a PRSA provider, not being a PRSA provider referred to in subsection (2) or (3) of section 96, shall ensure such payments are held in a custodian account through a custodian with whom it has entered into a custodian contract in accordance with subsection (1)(e) of section 96 in such a manner that they are clearly identifiable and legally separate from the assets of the PRSA provider.

(2) Subject to section 121(3), every contribution to a PRSA contract shall be paid to the custodian account of the relevant PRSA provider.

(3) The use by a custodian of the services of other financial institutions, sub-custodians or nominees in order to provide for the safekeeping in a custodian account of the payments referred to in subsection (1) shall not relieve the custodian of any of its obligations, duties or liabilities under a custodian contract.

(4) Where a contribution is paid to an intermediary, including an investment business firm authorised under the Investment Intermediaries Act, 1995 , or a member firm authorised under the Stock Exchange Act, 1995 , in respect of a PRSA contract entered into by a PRSA provider, the contribution shall be treated as having been paid to the PRSA provider when it is paid to the intermediary. Nothing in this subsection shall render a PRSA provider liable for a contribution paid to an intermediary in respect of a PRSA contract entered into by a PRSA provider, where the PRSA provider has given reasonable notice in writing to the PRSA contributor, that the intermediary has no authority to collect such contributions on behalf of the PRSA provider.

Transfers between PRSA providers.

108.—(1) Any provision of a PRSA contract purporting to prohibit a contributor from entering into another PRSA contract and transferring his PRSA assets to the PRSA provider with whom he has entered into the other such contract shall be void.

(2) Any provision of a PRSA contract purporting to require a payment by a contributor in respect of a transfer of the kind referred to in subsection (1) shall be void.

(3) A provider of a Standard PRSA which is nominated by an employer and which facilitates access by the employees of the employer by means of payroll deductions shall accept transfers of any PRSA assets that may be held by those employees.

Payment of PRSA assets to contributor.

109.—(1) Save in accordance with Chapter 2A of Part 30 of the Taxes Consolidation Act, 1997 , a PRSA provider shall not pay the PRSA assets to a contributor, except where—

(a) the amount of the contributor's PRSA assets with that PRSA provider, at the time of a request by the contributor for or offer by the provider, does not exceed €650 or such other amount as the Minister may, by regulations, specify, and

(b) no contributions have been received from the contributor for a period of at least 2 years prior to the said request or offer,

in which case, if the PRSA provider complies with the condition referred to in subsection (2), he may refund the contributor's PRSA assets to him and, in the case of an offer by the PRSA provider of a payment, without the contributor's consent.

(2) The condition mentioned in subsection (1) is that a period of 3 months or more has expired from the service of a written statement by the PRSA provider on the contributor advising the contributor to transfer his PRSA assets to another PRSA or pension arrangement or to make further contributions.

Marketing and sale of PRSAs.

110.—(1) A Standard PRSA shall not be marketed or sold in such a manner as makes the entering into of a contract in respect of it dependent on any other product being purchased.

(2) No document relating to the marketing or sale of a Standard PRSA may solicit the purchase of, or otherwise advertise any other product.

(3) The Minister may by regulations enable the Board to impose such conditions or requirements on a PRSA provider in respect of advertising by the provider of its activities as such a provider as the Board considers necessary in the interests of—

(a) the orderly and proper regulation and supervision of PRSA providers, or

(b) the protection of contributors.

Preliminary disclosure certificate.

111.—(1) Before offering to enter into a PRSA contract with a person, a PRSA provider shall furnish to that person a certificate (which shall be known and is in this Act referred to as a ‘preliminary disclosure certificate’).

(2) A preliminary disclosure certificate shall specify the benefits and the level of them which the person referred to in subsection (1) could reasonably expect to receive from the PRSA concerned on the expiration of a period specified in the regulations made by the Minister for the purposes of this section and calculated in accordance with those regulations on the basis of projected contributions to be made during the said period and otherwise on the basis of assumptions specified in the regulations.

(3) A PRSA contract shall not be enforceable against a person until a period of 15 days has elapsed from the date on which the PRSA provider has given to that person a Statement of Reasonable Projection in accordance with section 112(2)(a).

(4) The Minister may make regulations requiring a PRSA provider to make, in accordance with the regulations, full disclosure to the person referred to in subsection (1) and contributors of all potential and actual commissions payable and other charges payable by contributors in respect of a PRSA product, other than a Standard PRSA, provided by the PRSA provider.

(5) Each person who provides a service to a PRSA provider with respect to its business of providing PRSA products (including each person referred to in section 96(1)) shall furnish to the PRSA provider such information in relation to commissions and expenses charged by him in relation to the provision of that service as is necessary to enable the PRSA provider to comply with its obligations under subsection (4).

Obligation to furnish Statements of Reasonable Projection.

112.—(1) A PRSA provider shall furnish to the contributor to a PRSA operated by it a Statement of Reasonable Projection—

(a) annually (and a statement under this paragraph shall be in printed and no other form),

(b) subject to subsection (3), at any time on being requested by the contributor to do so, and

(c) on the happening of any of the events referred to in subsection (2).

(2) The events referred to in subsection (1)(c) are—

(a) the entry by the person referred to in section 111(1) into a PRSA contract with the provider, and

(b) an increase in the number or amounts of charges that may be made under the PRSA contract concerned.

(3) A PRSA provider shall not be obliged to comply with a request under subsection (1)(b) unless the contributor concerned gives reasonable notice to him of the request but the provider may not require more than 7 days' notice for this purpose.

(4) Where a Statement of Reasonable Projection falls to be furnished by virtue of subsection (1)(c), it shall be furnished to the contributor concerned within 7 days from the happening of the event concerned referred to in subsection (2).

(5) The Minister may by regulations require a PRSA provider to provide a Statement of Reasonable Projection to a contributor on the happening of a specified event (not being an event referred to in subsection (2)).

Disclosure before transfer from a scheme to a PRSA.

113.—(1) Subject to subsection (3), a PRSA provider shall not accept the transfer of funds from a scheme to the PRSA which that PRSA provider operates unless it has previously ensured that there has been furnished by it, or an intermediary on its behalf, to the person wishing to make such a transfer (that is to say, the member of the scheme)—

(a) a certificate setting out a comparison of the benefits which may accrue from the scheme and which may accrue from the PRSA, and

(b) a written statement of the reasons why such a transfer is or is not in the interest of the person wishing to make such a transfer.

(2) The trustee of the scheme referred to in subsection (1)(a) shall, at the request of the person referred to in that subsection, furnish to that person or the PRSA provider referred to in that subsection a statement of the benefits which may accrue from the scheme in respect of that person.

(3) Except in the case of a person who is, for the time being, a member of a scheme accruing benefit under that scheme, subsection (1) shall not apply to a transfer—

(a) of a sum less than €4,000, or

(b) which represents a return of contributions, or the value of accrued benefits, to a member who has less than two years' service in the employment in respect of which the scheme was operative and has no preserved benefit.

(4) The Minister may by regulations prescribe the form of the certificate referred to in subsection (1)(a) and the statement referred to in subsection (1)(b) and the requirements to be satisfied before such a certificate or statement may be furnished under that subsection which shall include a requirement that the person preparing such certificate or statement has such professional indemnity insurance as shall be specified in the regulations.

General disclosure obligations.

114.—(1) A PRSA provider shall give to the contributor to a PRSA operated by it, at intervals of not greater than 6 months' duration, a statement of account in printed and no other form specifying, as at the date of preparation of the statement—

(a) the total contributions credited to the contributor by the PRSA provider since the PRSA contract was entered into by him, and

(b) where a previous statement of account under this subsection has been given to the contributor, the total contributions credited to the contributor by the PRSA provider during the period between the date of preparation of the last previous such statement and the date of preparation of the current statement.

(2) A statement of account given in accordance with subsection (1) shall, where appropriate, differentiate between contributions paid by the employee and those paid by his employer.

(3) A statement of account given pursuant to subsection (1) shall state the value of the PRSA on the date of preparation of the statement.

(4) A PRSA provider shall furnish a report, at intervals of not greater than 6 months' duration, to the contributors on the performance of all investment funds in which the moneys of the said contributors' contributions are invested.

(5) In subsection (3) ‘value of the PRSA’ means the amount of money that would be available to the contributor concerned for transfer out of the PRSA on the date of preparation of the statement concerned.

Power of Minister to prescribe information to be disclosed.

115.—The Minister may by regulations—

(a) prescribe the form and contents of a Statement of Reasonable Projection,

(b) as respects any obligation imposed by or under this Part to disclose information (other than in the form of such a statement), where not otherwise specified therein, prescribe—

(i) the type of information which must be disclosed to a contributor,

(ii) the format in which information must be disclosed,

(iii) the manner of its disclosure,

(iv) the periods within which such disclosure must be made,

(v) the persons to whom such disclosure must be made, and

(vi) the persons who may be obliged to make such disclosure,

(c) provide that the requirements of this Part in relation to the disclosure of information shall not apply, or shall only apply to a specified extent, in respect of a Standard PRSA.

Statement of Reasonable Projection.

116.—(1) In this Part ‘Statement of Reasonable Projection’ means a statement prepared by a PRSA provider for a PRSA contributor which specifies the level of benefit which could reasonably be expected at a specified date or dates to be payable under the contributor's PRSA contract based on the value of the PRSA at the date of the statement and using such assumptions as to future contributions and investment returns as may be specified in regulations.

(2) A Statement of Reasonable Projection shall contain such warnings as are prescribed for the benefit of a potential or actual contributor to a PRSA.

(3) A Statement of Reasonable Projection shall advise a potential or actual contributor to a PRSA of the importance of making adequate financial provision for retirement and of obtaining appropriate financial advice in that regard.

(4) A Statement of Reasonable Projection shall include a statement of the value, at the date of the preparation of the statement, of the old age (contributory) pension, within the meaning of Chapter 12 of Part II of the Social Welfare (Consolidation) Act, 1993 , as a percentage of earnings of a typical employee calculated in such manner as may be specified in regulations.

Functions of Board in relation to PRSAs.

117.—(1) The Board shall—

(a) keep a register in which there shall be entered such particulars as may be prescribed in relation to PRSA providers and PRSA products and such register shall be open for inspection by any member of the public at all reasonable times on payment of such fee as the Board may determine, and

(b) maintain, in accordance with regulations, an up to date database of statistics related to the PRSA assets of, and contributions and contributors to, Personal Retirement Savings Accounts provided by each PRSA provider, the activities of each PRSA provider in respect of its business as such a provider and the extent to which each particular default investment strategy applies in relation to a contributor to each PRSA.

(2) (a) Sections 87 to 89 shall apply to a PRSA.

(b) For the purposes of such application, the following expressions used in sections 87 to 89 shall, in those sections, have the meanings assigned to them by this paragraph—

(i) ‘employer’ means an employer whose employees are contributors to a PRSA.

(ii) ‘trustee’ means, as the context requires, a custodian or an investment manager,

(iii) ‘scheme’ means a PRSA,

(iv) ‘member’ means a contributor to a PRSA,

(v) ‘resources’ means the assets of a PRSA.

(3) The Board shall, from time to time, conduct reviews of actual charges purported to be made under PRSA contracts and shall, in accordance with regulations, monitor PRSA providers' promotional and other material to determine whether all charges and other matters required by regulations under this Part to be expressed in such material are expressed clearly therein.

(4) A failure by a PRSA provider to express clearly in its promotional material or any other of its material prescribed for the purposes of this section any charge or other matter as aforesaid shall constitute, for the purpose of section 97(1)(d), a serious failure by it to comply with its obligations under this Part.

(5) Each PRSA provider shall pay in each year to the Board a fee of such amount as may be prescribed by the Minister with the consent of the Minister for Finance.

(6) Regulations may be made by the Minister requiring each PRSA provider to furnish such information and reports as are specified in the regulations to the Board for the purpose of enabling the Board to perform its functions under this section.

(7) Notwithstanding anything in this Part, the Board may, with the consent of the person concerned, delegate to such person as is, in the opinion of the Minister, suitable for the purpose and stands prescribed for the purposes of this subsection, the performance of one or more of its functions under this Part in relation to PRSA providers and applications for approval of PRSA products.

Functions of the auditor.

118.—The auditor, appointed by the PRSA provider under section 96(1)(b), shall, in accordance with such regulations as may be made by the Minister, prepare, and furnish to the Board, a report in relation to the PRSA provider's custodian account and the operation thereof.

Functions of the PRSA actuary.

119.—(1) The PRSA actuary with whom a PRSA provider has entered into the contractual arrangement mentioned in section 96(1)(d) or who is employed by it shall determine, at such intervals and within such periods and with respect to such matters as are specified in regulations, the extent to which the said provider has complied with this Part and regulations made thereunder.

(2) Such an actuary shall, as a result of that determination, certify, if in his opinion such be the case and within the period and in the form specified in regulations, that the deduction of any amount from a PRSA product by way of a charge—

(a) is consistent with the amounts indicated by the PRSA provider concerned in documentation made available to members of the public as being the amounts that would be deducted from the product by way of charges, and

(b) complies with this Part and regulations made thereunder.

(3) Regulations may prescribe that in—

(a) preparing a certificate under this section, or

(b) signing a certificate required under section 94(1)(b),

a PRSA actuary shall comply with any applicable professional guidance issued by the Society of Actuaries in Ireland for this purpose and specified in the regulations or with any applicable guidance issued by any other person (including the Minister) and specified in the regulations.

Functions of the administrator.

120.—Any contractual arrangement entered into in accordance with section 96(1)(c) shall include a provision requiring the administrator concerned to make provision in relation to such matters as may be prescribed.

Obligation of employer to provide access and to pay and to remit contributions.

121.—(1) An employer who is not operating a scheme or who is operating a scheme which limits eligibility for membership of it or imposes a waiting period for membership of it which is greater than 6 months from the date of commencement of employment shall, in respect of at least one type of Standard PRSA—

(a) enter for the benefit of his excluded employees into a contractual arrangement with one or more PRSA providers to enable those employees to participate in such a PRSA,

(b) deduct, at the request of any excluded employee and on receipt of the appropriate information from the employee, such sums of money as are determined by the employee and the employer from the wage or salary of the employee, and

(c) subject to subsections (2) and (3), remit the said sums to the Standard PRSA the subject of the contractual arrangement referred to in paragraph (a) or, if there is more than one such Standard PRSA, to the Standard PRSA chosen by the excluded employee.

(2) An employer referred to in subsection (1) shall—

(a) notify excluded employees of their right to contribute to a Standard PRSA by the means referred to in paragraph (b) of that subsection,

(b) allow PRSA providers or intermediaries reasonable access to excluded employees at their workplace for the purpose of concluding Standard PRSA contracts, and

(c) subject to work requirements, allow excluded employees reasonable paid leave of absence to enable them to make arrangements for the establishment of a Standard PRSA.

(3) An employer who deducts any sum from the wages or salary of an employee in respect of a PRSA contract entered into by that employee shall remit every such sum to the relevant custodian account of the PRSA provider within 21 days following the end of the month in which the deduction was made. An employer shall not make any deductions from the sum required to be remitted by him under this subsection.

(4) Where an employer is obliged (whether under a contract of employment or otherwise) to pay any sum expressed as a cash amount or expressed as a percentage or proportion of an employee's wages or salary (other than a sum deducted from the employee's wages or salary) to the relevant custodian account of a PRSA provider on behalf of or in respect of that employee, he shall, within 21 days following the end of every month, pay to the relevant custodian account of the PRSA provider, a sum equal to the appropriate cash amount or percentage or proportion of every payment of wages or salary made to that employee during that month. An employer shall not make any deduction from the sum required to be paid by him under this subsection.

(5) An employer who—

(a) deducts any sum from the wages or salary of an employee in respect of a PRSA contract entered into by that employee, or

(b) is obliged (whether under a contract of employment, or otherwise) to pay any sum to the relevant custodian account of a PRSA provider on behalf of or in respect of an employee (other than a sum deducted from the employee's wages or salary),

shall give or cause to be given to the employee and the PRSA provider concerned a statement in writing not less frequently than once a month specifying—

(i) the total amount deducted from the employee's salary or wages and remitted to the relevant custodian account of the PRSA provider, and

(ii) where appropriate, the total amount paid to the relevant custodian account of the PRSA provider on behalf of or in respect of the employee (other than any amount deducted from the employee's wages or salary),

in the preceding month or, if the previous such statement was given less than a month before, in the period since that previous statement was given.

(6) The requirements of subsection (5) relating to an employee shall be regarded as having been satisfied in respect of a particular deduction if the particulars of the deduction are, in accordance with section 9 of the Payment of Wages Act, 1991 , included in the statement given to the employee concerned under that section.

(7) An employer who enables his employees to participate in a Standard PRSA pursuant to this section shall have no duty to those employees regarding the investment performance of that Standard PRSA but shall ensure that the PRSA product is approved in accordance with this Part.

(8) Section 285 (2) of the Companies Act, 1963 , is amended—

(a) in paragraph (i), by the substitution for ‘salaries of employees.’ of ‘salaries of employees;’, and

(b) by the insertion of the following paragraph after paragraph (i):

‘(j) any payments due by the company pursuant to arrangements concerning a Personal Retirement Savings Account (within the meaning of the Pensions Act, 1990 ) in respect of employees of the company whether such payments are due in respect of the company's contribution under those arrangements or in respect of such contributions as are payable by the employees to the company under those arrangements and which have been deducted from the wages or salaries of employees.’.

(9) Section 7 of the Protection of Employees (Employers' Insolvency) Act, 1984 , is amended by the insertion after ‘scheme’ in each place where that word occurs of ‘or Personal Retirement Savings Account (within the meaning of the Pensions Act, 1990 )’.

(10) In this section—

‘excluded employee’ means, in relation to an employer—

(a) in case the employer is not operating a scheme, each employee of the employer, and

(b) in any other case, an employee of the employer who is not eligible for membership of any scheme operated by the employer and who, if he remains an employee, will not under the rules of any scheme operated by the employer become eligible for membership within 6 months from the date of commencement of employment with the employer;

‘membership’ means, in relation to a scheme, membership during which the person concerned would accrue an entitlement to long service benefit.

Replacement of buy-out bonds.

122.—(1) Notwithstanding anything contained in this or any other enactment, a person may not effect a policy or contract of insurance of the kind formerly approved by the Revenue Commissioners for the purpose of receiving payments from retirement benefit schemes approved under Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997 , and any such policy or contract which is purported to be entered into after the commencement of section 3 of the Pensions (Amendment) Act, 2002, in respect of this section shall be void.

(2) The persons who are parties to a contract of the kind referred to in subsection (1) may, by mutual agreement and subject to and in accordance with regulations, terminate the contract and transfer the assets the subject of the contract into one or more than one PRSA.

Additional voluntary contribution arrangements.

123.—(1) On and from the commencement of section 3 of the Pensions (Amendment) Act, 2002, in respect of this section an occupational pension scheme which has as its only purpose the payment of additional voluntary contributions by a person who is the sole member of the scheme shall not be established and any such scheme which is purported to be established after such commencement shall be void.

(2) If a scheme does not include an option enabling the payment of voluntary contributions, the employer who operates such a scheme (the ‘first scheme’) shall, unless he operates another scheme which permits payment of voluntary contributions by members of the first scheme, subject to and in accordance with regulations, permit his employees who are members of the first scheme to participate in one or more than one Standard PRSA and such employees shall be ‘excluded employees’ for the purposes of subsections (1) and (2) of section 121.

Transfers to defined benefit schemes and defined contribution schemes.

124.—(1) The Minister may by regulations make provision in relation to the transfer of PRSA assets into a defined benefit scheme or a defined contribution scheme.

(2) Transfers of the kind referred to in subsection (1) may be made, in accordance with such conditions as may be prescribed, to any arrangement for the provision of retirement benefits established outside the State to the same extent that transfers are permitted from a scheme.

Retirement annuity contracts and defined contribution schemes.

125.—(1) The persons who are parties to a retirement annuity contract may, by mutual agreement and subject to and in accordance with regulations, cancel the contract and effect a transfer of the assets the subject of that contract into one or more than one PRSA.

(2) Where a defined contribution scheme is to be terminated and its assets transferred to one or more than one PRSA established in respect of the members of the scheme, the employer who operates the scheme shall ensure that all relevant information relating to the termination of the trust and the conclusion of a PRSA contract as may be prescribed is made available in writing to the members of the said scheme at least 3 months before any transfer from or termination of the trust is made or effected.”.