IORPS II significant changes to pensions
It late April it was announced that the EU Occupational Pension Scheme Regulations 2021 had been signed, thereby transposing the IORPS II into Irish Law’
These new regulations make significant changes to the Pensions Act by inserting the terms of IORP II directly into Irish Law. IORPS II means changes both for the establishment of new employer pension schemes and for existing pension schemes.
These regulations introduce higher standards for pension scheme governance. If you have a Self Administered Pension Scheme SSAP, one-member pension plan or a company pension plan you need to take action and/or review your structure to ensure you continue to be compliant;
The regulations will apply immediately to group pension schemes.
One-member schemes have derogation (an exemption) that defers most aspects of the regulations for 5 years. Conditions apply.
Immediate changes to one-member schemes that do not have the five year derogation. These include;
New investment sections - no more than 50% may be invested into property (unregulated investments)
New borrowing is not allowed
Nelson Life working with you for a better future
For one-member schemes at Nelson Life we have access to four trustee models;
Trustee companies
Access to professional trustees
Lay trustee board
Master Trusts (one large scheme established under trust to which any employer can affiliate)
Currently, the new regulations do not apply to Personal Pensions (other than Trust Retirement Annuity Contracts), Personal Retirement Savings Accounts PRSAs, Additional Voluntary Contributions AVC, Additional Voluntary Contribution Personal Retirement Savings Accounts AVC PRSAs, vested PRSAs or Approved Minimum Retirement Fund AMRF/ Approved Retirement Fund ARF.
IMPORTANT - we are continuing to review the detail of the IORPS II, we will bring additional information and guidance as the practical implications and solutions become clearer.
We expect to see further changes - Pensions Road Map, Auto-enrolment and a significant review of PRSAs (example, where employer contributions to a PRSA being equalised with the current employer contribution rules for company pensions).
Pensions continue to be a valuable benefit to you and this has not changed. the tax relief available and benefit thresholds remain the same. We are here to help ensure you are on track for a better retirement and answer any questions you may have.
We are available to discuss your options, and we look forward to hearing from you.
telephone | 091441188 and/or email | office@nelsonlife.ie
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Nelson Life Limited trading as Nelson life is regulated by the Central Bank of Ireland.
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