Credit Institutions (Stabilisation) Act 2010

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Amendment of National Pensions Reserve Fund Act 2000.

76.— The National Pensions Reserve Fund Act 2000 is amended as follows:

(a) in section 2—

(i) after the definition of “company”, insert:

“ ‘credit institution’ has the same meaning as in the Central Bank Act 1997 , but does not include Irish Nationwide Building Society or Anglo Irish Bank Corporation Limited;”,

(ii) in the definition of “directed investment”, paragraph (a), after “19A” insert “or 19AA”,

(iii) in the definition of “directed investment”, paragraph (c), delete “listed”, and

(iv) delete the definition of “listed credit institution”;

(b) in section 15A(5)—

(i) in the definition of “relevant acquisition”, delete “listed”, and

(ii) in the definition of “relevant transfer”, delete “listed”,

(c) in section 18—

(i) for subsection (1), substitute:

“18.— (1) There shall stand established, on the establishment day, a fund to be known as the National Pensions Reserve Fund, and in this Act referred to as the “Fund”, for the purposes of—

(a) directed investments in accordance with section 19A or 19AA,

(b) payments to the Exchequer in accordance with section 20A, and

(c) meeting as much as possible of the cost to the Exchequer of social welfare pensions and public service pensions to be paid from the year 2025 until the year 2055, or such other subsequent years as may be specified in an order under section 20(3).”;

(ii) after subsection (2A), insert:

“(2B) The Minister may, by order, provide that—

(a) the sum paid into the Fund in a relevant year shall be less than one per cent of Gross National Product, or

(b) no sum shall be paid into the Fund in that relevant year or that no further instalment shall be paid in that relevant year.

(2C) For the purposes of subsection (2B), “relevant year” means each of the financial years 2012 and 2013.”;

(d) in section 19A(2)(a), delete “listed”;

(e) in section 19A(2)(b), delete “listed”;

(f) after section 19A, insert:

“Direction to invest in government securities, etc.

19AA.— (1) Notwithstanding section 6(1)(c), the Minister may, where it appears to him or her to be desirable to do so for the purposes of the management of the National Debt or the borrowing of money for the Exchequer, give a direction in writing to the Commission to invest, on terms and conditions specified in the direction, in securities issued under section 54 (1) of the Finance Act 1970 or securities guaranteed by the Minister.

(2) The Minister may give a direction in writing to the Commission to hold all or part of the assets of the Fund in such form as will facilitate investment in securities issued under section 54 (1) of the Finance Act 1970 or securities guaranteed by the Minister for Finance.

(3) The Commission shall comply with a direction under subsection (1) or (2).”;

(g) after section 20, insert:

“Direction to make certain payments to Exchequer.

20A.— (1) Notwithstanding any other provision of this Act, the Minister may give a direction in writing to the Commission to make a payment or payments, in any of the financial years 2011, 2012 and 2013, to the Exchequer where it appears to him or her to be desirable to do so in the interests of ensuring the funding of capital expenditure by the Exchequer.

(2) The Minister shall lay a copy of a direction under subsection (1) before each House of the Oireachtas.

(3) For the purposes of subsection (1), the Minister may give a direction in writing to the Commission to hold all or part of the assets of the Fund in such form as will facilitate making a payment to the Exchequer.

(4) The Commission shall comply with a direction under subsection (1) or (3).”.