Regulatory Updates
Deadline for trustee of deficit schemes to file funding proposals will start to expire from November 2010
August 2010
The Pensions Board has recently outlined the general approach that the Board will be adopting where schemes have not taken steps to eliminate the deficit by the expiry of the deadlines.
The deadlines to file funding proposals and/or a Section 50 application will start to expire from November 30th 2010. The Board says it is critical that trustees take steps to meet the funding standard or submit the appropriate application on or before the deadline for their scheme. The Board expects to receive applications by the due deadline and will consider these on the basis of the factors and criteria outlined in various communications, including the guidelines and FAQs which can be accessed at www.pensionsboard.ie.
The Board has also highlighted the statutory powers it will be obliged to consider in the event of schemes not submitting applications by the deadline. These include the power to unilaterally direct the trustees to reduce benefits and/or prosecute trustees for failure to submit a funding proposal. While the precise course of action will be considered on a case-by-case basis, it is important that schemes must take the necessary measures to address their deficits, failing which the Board will take such action as it deems appropriate.
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