S.I. No. 371/1991:

OCCUPATIONAL PENSION SCHEMES (FUNDING STANDARD) REGULATIONS, 1991.

OCCUPATIONAL PENSION SCHEMES (FUNDING STANDARD) REGULATIONS, 1991.

The Minister for Social Welfare, in exercise of the powers conferred on him by sections 5 , 42 , 43 , 47 and 52 of the Pensions Act, 1990 (No. 25 of 1990), hereby makes the following Regulations.

1. These Regulations may be cited as the Occupational Pension Schemes (Funding Standard) Regulations, 1991.

2. In these Regulations--

"the Act" means the Pensions Act, 1990 (No. 25 of 1990);

"actuarial funding certificate" has the meaning assigned to it in section 42 of the Act;

"affiliated employer" means another employer where one of the employers is a subsidiary (within the meaning of Section 155 of the Companies Act, 1963 , (No. 33 of 1963)) of the other, or where both employers are subsidiaries of a third employer;

"self-investment", in relation to a scheme, means investment of all or part of the resources of the scheme in the business of the employer of any person employed in relevant employment, or of an affiliated employer, and for this purpose the term "investment" shall be deemed to include--

(a) shares or other securities issued by the employer or by an affiliated employer,

(b) land which is occupied or used by or subject to a lease in favour of the employer or an affiliated employer,

(c) property, other than land, which is used for the purpose of any business carried out by the employer or an affiliated employer,

(d) loans to the employer or an affiliated employer,

(e) moneys due to the scheme held by the employer or an affiliated employer;

"concentration of investment", in relation to a scheme, means investments exceeding a stated percentage of the resources of the scheme in one undertaking and in any associate of it or in one property, other than in the following categories:--

(a) Government securities;

(b) insurance policies;

(c) contracts of assurance;

(d) managed funds;

(e) unit trusts; and

(f) cash deposits.

3. (1) For the purposes of section 42 of the Act--

(a) the first actuarial funding certificate in respect of a relevant scheme which came into operation prior to the 1st day of January 1991, shall be in the form set out in Schedule A to these Regulations or, in a form substantially to the like effect, and

(b) an actuarial funding certificate other than that referred to in paragraph (a) above shall be in the form set out in Schedule B to these Regulations or, in a form substantially to the like effect.

(2) Where the effective date of an actuarial funding certificate is a date prior to the 1st day of January, 1992, the said certificate shall be submitted to the Board by the trustees of the scheme within 15 months of such effective date.

4. For the purposes of Part IV of the Act, any calculation of the resources of a relevant scheme shall exclude--

(a) any self-investment in excess of 20 per cent. or

(b) any concentration of investment in excess of 20 per cent.

of the resources of the scheme.

5. (1) The provisions of Part IV of the Act shall not apply in the case of any of the schemes specified in Schedule C to these Regulations.

(2) Reference to a scheme in Schedule C to these Regulations shall be construed as a reference to that scheme as modified, amended or extended.

6. In the case of a scheme established under section 44 of the Forestry Act, 1988 (No. 26 of 1988)--

(a) Section 44 (a) of the Act is hereby modified by the substitution for "liabilities of the scheme" of "liabilities of the scheme other than the liabilities arising under section 44 (9) and (10) of the Forestry Act, 1988 ",

(b) Section 45 (2) of the Act is hereby modified by the insertion of the words "other than the benefits referred to in Section 44 (9) of the Forestry Act, 1988 " after the word "relates" in line 3 of that provision, and

(c) Section 45 (2) (b) (i) of the Act is hereby modified by the substitution for "liabilities of the scheme" of "liabilities of the scheme other than the liabilities arising under section 44 (9) and (10) of the Forestry Act, 1988 ".

GIVEN under the Official Seal of the Minister for Social Welfare

this 30th day of December, 1991.

BRENDAN DALY,

Minister for Social Welfare.

The Minister for Finance hereby consents to the making of these Regulations.

GIVEN under the Official Seal of the Minister for Finance this

30th day of December, 1991.

BERTIE AHERN,

Minister for Finance.

SCHEDULE A.

Article 3

FIRST ACTUARIAL FUNDING CERTIFICATE.

This certificate has been prepared under the provisions of Section 42 of The Pensions Act 1990 ("the ACT") for submission to the Pensions Board by the Trustees of the Scheme.

SCHEDULE B.

ACTUARIAL FUNDING CERTIFICATE.

This Certificate has been prepared under the provisions of Section 42 of The Pensions Act 1990 ("the Act") for submission to the Pensions Board by the Trustees of the Scheme.

SCHEDULE C.

Article 5

SCHEMES EXCLUDED FROM THE PROVISIONS OF PART IV OF THE ACT.

Part I.

Agency for Personal Service Overseas Staff Superannuation Scheme (No. 2).

Agricultural Colleges Staff Superannuation Scheme, 1985.

An Post Main Superannuation Scheme, 1990.

An Bord Pleanála Staff Superannuation Scheme, 1986.

An Bord Pleanála (Chairman and Members) Superannuation Scheme, 1986.

An Chomhairle Ealaoin Staff Superannuationn Scheme, 1976.

An tUdaras um Ard-Oideachas Superannuation Scheme, 1980.

Bord na gCapall Staff Superannuation Scheme.

Bord Iascaigh Mhara Staff Superannuation Scheme.

Bord Iascaigh Mhara Craft and Manual Employees Superannuation Scheme.

Central Bank of Ireland Superannuation Scheme.

Central and Regional Fisheries Boards' Staff Superannuation Scheme, 1983.

CERT Superannuation Scheme.

Civil Service (Established Staff) Superannuation Acts, 1834 to 1963 and Superannuation and Pensions Act, 1976 .

Civil Service (Unestablished Staff) Non-Contributory Pension Scheme for Non-Established State employees.

Colleges of Education Pension Scheme, 1954.

Contributory Pension Scheme for Clerical Staff serving in National and Secondary Schools.

Contributory Pension Scheme for Non-Teaching Staff of Comprehensive and Community Schools.

Crafts Council of Ireland Ltd. Staff Superannuation Scheme, 1986.

Dublin Institute for Advanced Studies (Superannuation) Scheme, 1947.

Dublin City University Superannuation Scheme.

Dublin Institute for Advanced Studies Non-Established Employees (Superannuation) Scheme, 1983.

Dublin Transport Authority Staff Superannuation Scheme, 1987.

Economic and Social Research Institute Staff Superannuation Scheme.

Economic and Social Research Institute Supervisors, Clerical and other Administrative Staffs Superannuation Scheme.

Foyle Area (Pension) Regulations, 1963.

Garda Síochána Pensions Orders, 1925 to 1981.

Industrial Development Authority Staff Superannuation Scheme, 1970.

Institiúid Teangeolaoíchta Éireann Staff Superannuation Scheme, 1986.

Institute of Public Administration Staff Superannuation Scheme, 1983.

Labour Court (Members) Superannuation Scheme, 1971.

Law Reform Commission Superannuationn Scheme, 1982.

Lay Land Commissioners Superannuation Scheme, 1979.

Legal Aid Board Staff Superannuationn Scheme, 1981.

Local Government (Superannuation Revision) (Consolidation) Scheme, 1986.

Local Government (Superannuation) Act, 1956 (Consolidation) Scheme, 1987.

National Institute for Physical Planning and Construction Research Limited (An Foras Forbartha Teoranta) Superannuation Scheme, 1975.

National Safety Council Staff Superannuation Scheme, 1991.

National Concert Hall Co. Staff Superannuation Scheme, 1987.

National School Teachers' Superannuation Scheme, 1934.

National College of Art and Design Staff Superannuation Scheme, 1984.

National University of Ireland General Pension Scheme.

National Council for Educational Awards Staff Superannuation Scheme, 1987.

Nominated Health Agencies Superannuation Scheme, 1981.

Nuclear Energy Board (An Bord Fuinnimh Nuicleigh) Staff Superannuationn Scheme, 1985.

Ombudsman Superannuation Scheme, 1987.

Pension Scheme for the Staff of Colleges of Home Economics, 1987.

Regional Tourism Organisations Pension and Life Assurance Scheme.

Restrictive Practices Commission (Members) Superannuation Scheme, 1981.

Royal Irish Academy of Music Staff Superannuation Scheme, 1989.

Scéim Aoisliúntas Fhoireann Bhord na Gaeilge, 1982.

Scéim Aoisliúntas Fhoireann Údarás na Gaeltachta, 1991.

Secondary Teachers' Superannuation Scheme, 1929.

Shannon Free Airport Development Company Limited (General Employees) Superannuation Scheme, 1966.

Special Schools Superannuation Scheme, 1980.

St. Patricks College, Maynooth, Non-Contributory Pension Plan.

Superannuation Scheme for officers employed under the scheme for the provision of (Oireachtas) secretarial assistance.

Telecom Eireann Main Superannuation Scheme, 1988.

Thomond College of Education Limerick Superannuation Scheme, 1984.

Tourist Traffic Act 1952 (General Employees) Consolidating and Amending Scheme, 1991.

Trinity College Dublin Pension Scheme.

University College, Cork Pension Scheme Statute LXXIX.

University College, Dublin Pension Scheme Statute XCVI.

University College, Galway Pension Scheme Statute XVII Chapter XXV.

University of Limerick Superannuation Scheme.

Voluntary Hospitals Superannuation Scheme, 1969.

Voluntary Hospitals (Non-Officers) Superannuation Scheme, 1985.

Any scheme established under section 9 of the Agriculture (Research, Training and Advice) Act, 1988 .

Any scheme established under article 5 of the Environmental Research Unit (Establishment) Order, 1988, ( S.I. No. 20 of 1988 ).

Any scheme established under Section 15 of the Export Promotion Act, 1959 .

Any scheme established under Section 35 of the Industrial Research and Standards Act, 1961 .

Any scheme established under Section 8 of the Labour Services Act, 1987 .

Part II.

Schemes for the purpose of providing benefits to the spouses and children of members of any of the schemes specified in Part I in the event of the death of a member.

EXPLANATORY NOTE.

These Regulations deal with a number of matters with regard to the implementation of the funding standard requirements set down in Part IV of the Pensions Act, 1990 .

The funding standard applies to defined benefit schemes and will ensure that, over a period, sufficient assets are held within the scheme to meet liabilities in the event of the scheme being wound up. Trustees of schemes are required to submit actuarial funding certificates to the Pensions Board at regular intervals for the purpose of certifying whether or not the scheme satisfies the funding standard at the effective date.

The Regulations prescribe the form and content of the actuarial funding certificates and extend the time-limit for submission of the certificate in the case of certain schemes.

They also provide that any self-investment or concentration of investment in excess of 20 per cent. of the assets of the scheme shall not be taken into account for the purpose of certifying the adequacy of the assets to meet the minimum liabilities under the funding standard.

Provision is also made for the exclusion of certain public service schemes from the application of the funding standard and for certain modifications of the relevant provisions in the case of a scheme established under the Forestry Act, 1988 .