S.I 175 of 2013


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S.I. No. 175 of 2013.

OCCUPATIONAL PENSION SCHEMES (FUNDING STANDARD RESERVE) REGULATIONS 2013

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The size of the funding standard reserve for a defined benefit scheme depends on the nature of the assets held by the scheme in question. The greater the amount of lower risk assets held, the lower the reserve requirement. Section 44(2)(a)(i),(ii) and (iii) of the Pensions Act specifies certain assets which have the effect of reducing the funding standard reserve requirement. These are bonds issued under section 54(1) of the Finance Act 1970, bonds issued by another EU Member State and cash deposits with one or more credit institutions. Section 44(2)(a)(iv) of the Pensions Act gives the Minister for Employment Affairs and Social Protection power to prescribe other assets as having the same funding standard reserve requirement reducing effect on the ground that they offer a similar degree of security to those assets identified above. These Regulations prescribe additional asset classes which have the effect of reducing the funding standard reserve requirement.

These regulations also change the risk reserve requirement to 10%.

Last modified:24/07/2013