Ireland’s Pensions Authority publishes FAQs for one-member arrangements

Ireland’s Pensions Authority has published a document of frequently asked questions (FAQs) on investment and borrowing for one-member arrangements under the Pensions Act 1990 (the Act), as amended.

The FAQs are intended to provide assistance to trustees of one-member arrangements in understanding their obligations under the Act in relation to investment and borrowing rules and the derogations available to them in respect of those obligations.

The authority noted that for one-member arrangements established before 22 April 2021, a derogation from the new requirements under Part VIB (new governance obligations on schemes that include written policies, key functions, outsourcing and investment management) of the Act applies until 21 April 2026.

In addition, an open-ended derogation from the investment rules under section 59AB of the Act and the borrowing restrictions under section 61B of the Act applies in respect of investments made or borrowing arrangements entered into before 22 April 2021.

However, one-member arrangements established on or after 22 April 2021 will not be entitled to benefit from any of the above derogations. The authority clarified that a one-member arrangement is established on the date the documentation setting up the arrangement is validly executed by all of the parties, or any later establishment or commencement date provided for in that documentation.

A one-member arrangement cannot be established retrospectively to a date prior to the date the documentation setting up the arrangement has been validly executed by all of the parties.

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