Tel: +353 1 603 9700
As expected, the Social Welfare and Pensions Act 2012 went through the Oireachtas quite quickly and it became law on 1st May 2012. This means that the primary legislation governing how defined benefit (DB) pension schemes must deal with their funding challenges is now in place.
Summary of Main Provisions
Changes in Final Legislation
The final Act contains some technical differences that were overlooked in the original Bill as follows:
Detailed Pensions Board Guidance
As previously reported, the Act sets out the basic requirements, but we must await detailed guidance from the Pensions Board - this is expected to be published shortly. This guidance will include the timelines for submitting funding proposals and other technical guidance (particularly where Section 50 benefit reductions are required), the period over which the risk reserve can be funded and the allowance that can be made to MFS liability calculations when trustees invest in sovereign bonds or plan to buy sovereign annuities.
For further information, please contact your usual Mercer contact.
Alternatively, queries may be directed to our marketing department via
Charlotte House, Charlemont St, Dublin 2
+353 1 603 9700
23/25 South Terrace, Cork
+353 21 491 0900