Irish Pensions Authority publishes info on OMA to master trust transfers

The Irish Pensions Authority has published information in relation to exit charges, trustee annual reports and audited accounts for one-member arrangement (OMA) to master trust transfers.

It noted that while the policy of no exit charges being applied in respect of assets held under master trusts when transferring assets in and out of a master trust remained unchanged, there were details to take into account for existing OMAs migrating into a master trust.

Exit charges can be applied to the ring-fenced assets transferred from the existing OMA to a master trust so any pre-existing exit charge period can be carried forward for those assets.

They can also be applied where, at the date of transfer to a master trust, contributions are being made to the OMA that are subject to an exit charge on the accumulated value of relevant contributions if the member leaves within the exit charge period.

Schemes are not permitted to charge an exit fee on any future contributions to the master trust, except in the above example, or on any increase in contributions.

Furthermore, the authority stated that no new exit charge period can be imposed for any contribution once the OMA assets have been transferred to the master trust.

Trustees that have made a commitment to wind up an OMA established on or after 22 April and transfer the assets to a master trust or PRSA will not be expected to prepare an annual report and audited accounts if the commitment to wind up was made before 31 December 2022 and the OMA is wound up no later than six months after the commitment was made.

A formal commitment would include a written instruction from the employer to the trustees to wind up the OMA or a notification from the trustees to the member notifying them of their intention to wind up the OMA.

The authority said it will issue further information in relation to group schemes migrating into a master trust or PRSA in the coming weeks.

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