S.I. No. 291/2006 - Social Welfare Law Reform and Pensions Act 2006 (Part 3) (Commencement) Order, 2006

S.I. No. 291 of 2006

SOCIAL WELFARE LAW REFORM AND PENSIONS ACT 2006 (PART 3) (COMMENCEMENT) ORDER, 2006

The Minister for Social and Family Affairs, in exercise of the powers conferred on him by section 1(4) of the Social Welfare Law Reform and Pensions Act 2006 (No.5 of 2006), hereby orders as follows:

1.   This Order may be cited as the Social Welfare Law Reform and Pensions Act 2006 (Part 3) (Commencement Order, 2006.

2.   Part 3 of the Social Welfare Law Reform and Pensions Act 2006 (No.5 of 2006) comes into operation as follows -

(a)  sections 38, 41 and 43 and

(b)  section 44 (in so far as it relates to items 1, 2, 3, 4, 5, 7, 8 9 and 10 of Schedule 8 of the Social Welfare Law Reform and Pensions Act 2006 ),

on 24 May 2006.

EXPLANATORY NOTE

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

The order provides for the commencement, with effect from 24 May 2006 of the following provisions of Part 3 of the Social Welfare Law Reform and Pensions Act 2006 -

•    Section 38 which provides for the definitions used in Part 3 of the Act

•    Section 41 amends part IV of the Pensions Act to provide that in the case of an occupational pensions scheme, which provides increases in pensions linked to an index, the actuary to the scheme may assume a fixed rate increase will apply when calculating the liabilities of the scheme for the purposes of the funding standard or in calculating the liabilities of a scheme that is winding up and which is under-funded.

•    Section 43 which provides for an amendment to section 131 of the Pensions Act in relation to the functions of the Pensions Ombudsman and the operation of the Internal Dispute Resolution.

•    Section 44 of the Act in so far as it relates to the following items of Schedule 8 to the Act -

○   Item 1 which provides for a technical amendment to the definitions of “scheme” and trustees” in the Pensions Act,

○   Item 2 which amends section 5 of the Pensions Act to provide that the power to make regulations under section 5 includes the power to give effect to any provisions of the EC Treaties or to any Act adopted by an institution of the European Communities relating to any of the provisions of the Pensions Act.

○   Item 3 - Section 35 of the Pensions Act provides that in certain circumstances the trustees of a scheme may effect a transfer payment to an approved contract of assurance without the consent of the member. This amendment to section 35 provides that such a transfer payment may now also be made to a Personal Retirement Savings Account.

○   Item 4 amends section 43 of the Pensions Act to provide that, in the case of schemes that have been excluded under section 52 of the Pensions Act from the funding standard requirements where that exclusion ceases to apply, the trustees of such schemes will be required to submit their first actuarial funding certificate no later than 6 months after the date on which the exclusion ceased to apply.

○   Item 5 amends section 54 of the Pensions Act to give the Minister the power to make regulations which may require trustees of a defined contribution scheme to prepare a Statement of Reasonable Projection in accordance with any applicable guidance issued by the Society of Actuaries in Ireland.

○   Item 7 provides for a technical amendment to section 56 of the Pensions Act on foot of an amendment already made to section 56 by section 32(c) of the Social Welfare and Pensions Act 2005 .

○   Item 8 is a consequential amendment made on foot of the amendment in item 3 above.

○   Item 9 amends section 121 of the Pensions Act to provide that where an employer provides access to an overseas pensions scheme, as defined in the Taxes Consolidation Act 1997 , he or she is not obliged to give access to a PRSA.

○   Item 10 is a technical amendment to section 149 of the Pensions Act to allow more flexibility in the funding arrangements for Cross-Border schemes.