S.I. No. 389/2003 - Pensions (Amendment) Act, 2002 (Section 3 (In So Far As It Relates To The Insertion of Sections 121 (Except in So Far As That Section Is Already in Operation), 123, 124(1)) and 125 Into The Pensions Act, 1990)) (Commencement) Order, 2003

The Minister for Social and Family Affairs, in exercise of the powers conferred on her by section 1 of the Pensions (Amendment) Act, 2002 (No. 18 of 2002), hereby orders as follows:

Citation.

1. This Order may be cited as the Pensions (Amendment) Act, 2002 (Section 3 (in so far as it relates to the insertion of Sections 121 (except in so far as that section is already in operation), 123, 124(1) and 125 into the Pensions Act, 1990)) (Commencement) Order, 2003).

Commencement.

2. The 15th day of September 2003 is appointed as the day on which Section 3 (in so far as it relates to the insertion of Sections 121 (except in so far as that section is already in operation), 123, 124(1) and 125 into the Pensions Act, 1990 ) of the Pensions (Amendment) Act, 2002 comes into operation.

EXPLANATORY NOTE

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

This order provides for the commencement of section 121, 123 and 124(1) of the Pensions Act, 1990 as inserted by the Pensions (Amendment) Act, 2002 with effect from 15^th September 2003.

Section 121 (1), (2), (7), (8), (9) and (10) provide that where an employer does not operate a pension scheme, or operates one which limits eligibility or imposes a waiting period of more than 6 months, then such an employer must -

•    provide access to a Personal Retirement Savings Account (PRSA) for his employees,

•    notify employees that they have a right to contribute to a standard PRSA,

•    allow a PRSA provider or intermediary reasonable access to employees at their workplace,

•    allow reasonable paid leave of absence to enable such employees to set up a Standard PRSA, subject to work requirements, and

•    make deductions from payroll at employees' request.

Section 123 (1) prohibits, on and from the commencement of the section, single member schemes whose only purpose is to facilitate payment of additional voluntary contributions by that member. Section 123(2) provides that if an employer does not provide an option to pay additional voluntary contributions then the requirements of section 121 apply to his or her employees.

Section 124(1) facilitates transfers of PRSA assets to defined benefit or defined contribution schemes.

Section 125 (1) provides that existing Retirement Annuity Contract (RAC) policyholders will be permitted, by mutual agreement and subject to Regulations to transfer assets from an RAC to a PRSA.

Section 125(2) provides that where a Defined Contribution scheme is to be terminated and it's assets transferred to a PRSA or PRSAs, the employer must provide to members all relevant information relating to the termination of the trust and the conclusion of the PRSA contract at least 3 months before the trust is terminated.