Pension Scheme advice
The role of a pension scheme trustee - and you may one by default - requires you to adhere to strict rules of governance.
Over 56,000 schemes in Ireland only have ONE member - are you a trustee ?
Traditionally in Ireland many pension schemes were set up with the employer as trustee.
The increasingly onerous requirements for trustees has resulted in many scheme questioning their role as a trustee.The Pensions Authority has announced specific plans, which include a programme of proactive compliance activity - resulting in
on site inspections of administrators
reviews of PRSA compliance (please see www.saver.ie for guidance here)
pension scheme audits , and
checking employer pension scheme access provision.
What are the consequences of non-compliance?
Court proceedings may be taken against trustees for non-compliance with the Pensions Act.
The Pensions Authority may bring a case to the District Court or, for more serious allegations, refer the matter to the Director of Public Prosecutions (DPP), who may want to prosecute in a higher court by way of a charge sheet (called an indictment).The consequences are as follows:
On summary conviction (in the District Court), persons found guilty of an offence under the Act will get a fine not exceeding €5,000, imprisonment for up to one year or both.
On indictment in a higher court, persons convicted of a breach of the Act will get a fine not exceeding €25,000, imprisonment for up to two years or both
However, since 2007 on-the-spot fines provide an alternative to prosecutions of certain offences under the Pensions Act.
So what do you need consider and do next ?
1. You need to fully understand the role of trustee
2. Does your scheme operate within the Trust Deed and Scheme Rules?
3. You must meet minimum qualifying criteria to act as trustee
4. If your company acts as a trustee then ALL directors of the company are required to undertake trustee training every TWO YEARS.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
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telephone | 091441188 and/or email | office@nelsonlife.ie
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