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Registered Administrators

Registered Administrators. The Pensions Board 11 th and 12 th June 2008. Agenda. The Pensions Acts 1990 – 2008 Pensions Board Supervisory Developments Registered Administrators Q’s and A’s. The Pensions Acts 1990 - 2008. Part I – Preliminary and General

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Registered Administrators

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  1. Registered Administrators The Pensions Board 11th and 12th June 2008

  2. Agenda • The Pensions Acts 1990 – 2008 • Pensions Board Supervisory Developments • Registered Administrators • Q’s and A’s

  3. The Pensions Acts 1990 - 2008 • Part I – Preliminary and General • Part II – Establishment of Pensions Board • Part III – Preservation of Benefits • Part IV – Funding Standard • Part V – Disclosure of Information • Part VI – Trustees of Schemes *1 Part VIA – Registered Administrators *2 Part VII – Equal Treatment *1 Introduced by the Social Welfare and Pensions Act,2008 *2 Equal Pension Treatment introduced by Social Welfare(Miscellaneous Provisions) Act, 2004

  4. The Pensions Acts, 1990 - 2008 *3Part VIII– Compulsory and Voluntary Reporting *3Part IX – Miscellaneous Applications to the High Court *3Introduced by the Pensions (Amendment) Act, 1996 *4Part X – Personal Retirement Savings Accounts (PRSA’s) *4Part XI – Pensions Ombudsman *5 Part XII – Cross Border Schemes *4Introduced by the Pensions (Amendment) Act,2002 *5Introduced by the Social Welfare and Pensions Act,2005 • Social Welfare Law Reform and Pensions Act, 2006 • Social Welfare and Pensions Act, 2007 • Social Welfare and Pensions Act, 2008

  5. Pensions Board Supervisory Developments • Supervision function divided into 2 teams - Defined Benefit Supervision headed by Mary Hutch - Defined Contribution Supervision headed by Philip Dalton (to include PRSAs, DC OPS, Trust Based RACs) • Move to risk-based supervision • More focus on administration • On-site and off-site supervision

  6. Why RAs? • Implements the recommendations in the Board’s Report to the Minister on Trusteeship (November 2006) • Report noted that third party administrators were unregulated in terms of scheme administration work undertaken on behalf of trustees • Recommended that scheme administrators should register with Board who would then have responsibility to: • audit administration service provision, and • remove registration or apply sanctions if required standards are not met • Pensions Act amended to bring administrators within its remit in relation to certain core functions they perform

  7. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) What’s Required? • With effect from 1 November 2008 trustees of every scheme (including large Trust RACs) must appoint an RA to provide “core administration functions” • Core administration functions are: • preparation of annual reports • preparation of benefit statements • maintenance of sufficient and accurate member records to discharge above • No RA qualification specified but RA must be satisfied they are competent and capable of: • providing core administration functions • have systems and procedures in place to deliver services

  8. What’s Required? • Trustee can appoint themselves as RAs if they can fulfill above requirements • 1 member schemes must appoint RA for benefit statement/ records/Eurostat information • RA can apply to be registered for either or both core administration functions and must maintain records for function for which appointed • RAs also required to provide statistical information for Eurostat • applies to RA responsible for preparation of annual report if more than 1 RA

  9. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) Registration Process • Existing RAs must register with Board prior to 1.11.08 • New RAs must register before commencing business - registration period lasts 12 months • RAs must complete form indicating: • schemes for which they are applying to be registered (including “frozen” schemes) • certify they are satisfied they are competent to provide core administration functions to these schemes • Overseas administrators must register as RA and provide address in the State for service of notices and proceedings

  10. Registration Process • RAs must renew their registration annually no later than 30 days before anniversary of initial registration or renewal • No fee payable on registration or renewal • Sample registration forms available on Board’s website together with a note of Eurostat requirements

  11. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) Non - Compliance and Sanctions • Offence for RAs to fail to carry out core functions within time limits specified - within 8 months of scheme year end for annual reports - within 1 month prior to date of issue for benefit statements • RAs who outsource still liable • Sanctions for failure to perform core functions may include: - prosecution (not on-the-spot-fines) - subjecting RA to conditions on renewal of its registration - refusal to renew the registration • RAs can rely on third party defence apart from outsource arrangement

  12. Non-Compliance and Sanctions • Sanction depends on degree of non-compliance and number of schemes in respect of which offence has been committed • RA can appeal Board’s decision to terminate or refuse to renew registration to High Court • Criminal offence to carry out core functions without registering with the Board • Trustees still retain current duties under Pensions Act to provide Annual Reports and Benefit Statements - where they fail to do so but can show they had taken reasonable steps to secure compliance by RA, Board will not pursue trustees

  13. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) Supervising RAs • Board has power to: - require RA to furnish it with such information it considers necessary, either on scheme or trust RAC specific basis or generally with respect to RA activities - carry out on-site inspections of RA’s premises or of any outsourcee’s premises

  14. Supervising RAs • If registration is made conditional, terminated or not renewed, RA must: - give details to trustees of schemes or Trust RAC to whom providing RA services - if registration is terminated/not renewed, RA must arrange for transfer of all relevant information either to trustees or new RA nominated by trustees within 2 months • Board will publish details in Iris Oifigiul and 1 national newspaper within 28 days of its decision to make registration conditional/terminated or not renewed

  15. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) Other Issues • RAs are subject to “Whistleblowing” requirements • Pension Ombudsman’s powers under the Act apply to RAs • Register of RAs will be published on Board’s website • Certain people cannot be RAs, including undischarged bankrupts • RA Regulations are pending FAQs on RAs are available on www.pensionsboard.ie

  16. Social Welfare and Pensions Act 2008Registered Administrators (RAs) Eurostat Requirements • EU Regulation concerning structural business statistics requires member states to furnish specific information to Eurostat • Information required from pension schemes and trust RACs include: - scheme type - benefits - status - membership - fund value - contributions

  17. Eurostat Requirements • Corresponds closely to information required for Annual Reports • Information must be furnished in respect of each scheme and trust RAC within 9 months of scheme year end for scheme years commencing on or after 1 January 2008 • Onus to prepare is on RAs for schemes and trust RAC for which they are responsible - for small trust RACs, trustees are responsible - for public service schemes, administrators are responsible • Sample Eurostat form is on www.pensionsboard.ie • Requirements will be in Schedule J of Disclosure Amendment Regulations to be commenced 1 November 2008

  18. Social Welfare and Pensions Act, 2008Registered Administrators (RAs) Questions And Answers

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