Pensions Autumn Update 2021

• Published date: 24 September 2021
• Subject Matter: Employment and HR, Retirement, Superannuation & Pensions, Employee Benefits & Compensation
• Law Firm: Arthur Cox
• Author: Mr Philip Smith, Sarah McCague, Michael Shovlin, Daniel Watters, Katie Lawless, Doireann Nic Mhathúna and Enda Kerr

IORPS II General Update

Draft code of practice: On 22 July 2021 the Pensions Authority (the "Authority") published a draft code of practice for trustees of occupational pension schemes and trust Retirement Annuity Contracts ("RACs"). The draft code of practice sets out the Authority's expectations for the conduct and practice of trustees of pension schemes. It is stated as not intending to "prescribe how to comply with every requirement under legislation" but is to provide further explanation of how to comply with specific requirements that have been introduced by the European Union (Occupational Pension Schemes) Regulations 2021 - the IORP II domestic implementing regulations. The Code was open for public consultation up to 16 September and the final Code is due to be published in the week commencing 15 November 2021.

Annual Compliance Statement ("ACS"): The Authority has indicated that the format of the ACS form will be published in the week of 15 November 2021, with trustees expected to prepare the 2021 ACS before 31 January 2022. Trustees will not be required to submit the 2021 ACS to the Authority in 2022 although the Authority may request sight of the 2021 ACS from trustees as part of its ongoing supervisory activity. Trustees will be required to submit the 2022 ACS by the end of February 2023. Further details will be provided by the Authority on how to make the 2022 ACS submission during the course of 2022. The ACS must be certified for accuracy and completed by at least two trustees (or in the case of a corporate trustee by at least two directors).

Other relevant dates: The Authority has indicated that it will publish specific guidance in relation to the application of IORP II to master trusts in December 2021, small self-administered schemes and single member schemes in October 2021.

Pensions Commission Report

The Pensions Commission Report (the "Report") was submitted to Minister for Social Protection Heather Humphreys in early September. The Report is understood to include a recommendation that the State pension age rise in quarterly increments to 67 between 2028 and 2031, before gradually increasing to 68 by 2039. This is yet to be confirmed.

The Pensions Commission was established to examine sustainability and eligibility issues around State pensions and the social insurance fund. The Commission is due to develop options for Government on issues such as qualifying age, contribution rates, total contributions and eligibility requirements...