The Pensions Bill will be enacted by the end of March, the Minister for Social, Community and Family Affairs, Dermot Ahern has promised. Contrary to speculation by people in the pensions industry at present, the Minister is quite positive that his plans to have this Bill enacted by Easter will be realised. The Minister said that the Committee Stage of the Bill that is currently before the Seanad would commence on 13th February.
‘This Bill is one of the Government’s priority Bills and I will be doing my very best to ensure its passage through the Oireachtas as quickly as possible. It is a major piece of legislation that will affect people’s decisions in their planning for retirement and indeed as they move between or change employments.’
‘When enacted, it will also make a very significant contribution to pensions policy and development in this country which I think probably starts a new cycle of initiative and reform’, Minister Ahern added.
The Bill was first published in July of last year, and provides for the introduction of Personal Retirement Savings Accounts (PRSAs). The introduction of the PRSAs will open the market to providers other than life insurance companies, but only private companies registered in Ireland and licensed by the Pensions Board will be allowed to offer PRSAs solutions. The PRSAs will replace some existing pensions vehicles, targeting thosewho are not covered by occupational plans. The Bill also examines the introduction of a pensions ombudsman, in a decision that has been fully supported by the industry.
On page eight of this issue, Neil Herlihy of Watson Wyatt examines what employers need to provide in order to be compliant with the Bill. |
