The Irish Pensions Authority has published an update for trustees of defined benefit pension schemes detailing what will be expected of them once the IORP II Directive is transposed into Irish law.
The update also covers how the authority will supervise trustees in the future and how trustees can prepare for the impending changes. As a result of the directive, the authority is changing the way it supervises to a risk-based and forward-looking approach.
Its said the key requirements of the directive are already clear, despite the legislation not yet being in Irish law. However, it warned that the majority of the 570 DB schemes operating in Ireland have “significant challenges” and trustees will be expected to change the way they approach work.
The authority said trustees themselves will need to be “forward-looking” in how they manage the scheme, guided by the objective of good outcomes for members.
“The Pensions Authority will require trustees to demonstrate they understand and are managing the relevant scheme so that scheme management members have a reasonable chance of receiving the benefits set out in the scheme rules,” the authority stated.
They will also need to consider potential scenarios and stresses that can impact the benefits a scheme member will receive, assess weaknesses and shortcomings in their scheme and understand the requirements of IORP II and their legal obligations.
More information on the pensions authority’s update for trustees can be found here.
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