S.I. No. 503 of 2002

PERSONAL RETIREMENT SAVINGS ACCOUNTS (OPERATIONAL REQUIREMENTS) REGULATIONS, 2002

The Minister for Social and Family Affairs, in exercise of the powers conferred on her by sections 5, 99, 103, 110, 115, 117, 118 and 119 of the Pensions Act, 1990 (No. 25 of 1990) , hereby makes the following Regulations: -

Citation.

1. These Regulations may be cited as the Personal Retirement Savings Accounts (Operational Requirements) Regulations, 2002.

Definitions.

2. In these Regulations -

(a)   “the Act” means the Pensions Act, 1990 (No. 25 of 1990) ;

(b)       (i)       a reference to an article or Schedule is a reference to an article of or Schedule to these Regulations unless it is indicated that reference to some other provision is intended, and

(ii)      a reference to a sub-article is a reference to a sub-article of the provision in which the reference occurs unless it is indicated that reference to some other provision is intended.

3 month report.

3. (1) A 3-month report required under section 99(1) of the Act shall contain the information specified in Schedule A.

(2) A 3-month report required under section 99(1) of the Act shall be delivered to the Board within one month of the end of the period to which the report relates.

3 month return.

4. (1) A 3-month return required under section 99(1) of the Act shall contain the information specified in Schedule B.

(2) Each return required under section 99(1) of the Act in any year shall be delivered to the Board by the PRSA provider by 31 January next following the end of that year.

Annual report.

5. (1) An annual report required under section 117(6) of the Act shall be prepared by a PRSA provider and shall contain:-

(a)      the most recent determination of the PRSA actuary required under section 119(1) of the Act,

(b)      the most recent certificate of the PRSA actuary signed in accordance with article 9(4), and

(c)      the most recent management accounts of the PRSA provider's PRSA activities.

(2) An annual report prepared by a PRSA provider under this article shall be delivered to the Board each year within one month of the determination of the PRSA actuary in accordance with article 9(2).

Audited accounts.

6. The audited accounts of a PRSA provider required under section 99(3) of the Act shall be delivered to the Board within six months of the end of the period to which those accounts relate.

Default investment strategy.

7. In signing a certificate under section 94(1)(b) of the Act, a PRSA actuary shall comply with “Guidance Note 31 (ROI): PRSA Actuaries and Personal Retirement Savings Accounts Investment” issued by the Society of Actuaries in Ireland.

8. (1) Subject to sub-article (2), any default investment strategy shall:

(a)      adopt an investment profile consistent with fulfilling the reasonable expectations of a typical contributor with respect to the said PRSA product for the purposes of making savings for retirement;

(b)      not require individual contributors to make decisions as to the choice of specific investments made by the PRSA provider or its investment managers.

(2) The elements of a default investment strategy may vary between:

(a)      individual contributors to PRSA products falling within the same class according to any known characteristics of those individual contributors;

(b)      PRSA products of the same PRSA provider.

(3) The default investment strategy shall:

(a)      take into account the estimated outstanding duration until the contributor might be expected to receive benefits that are to be payable from the PRSA account;

(b)      be subject to periodic reviews by the PRSA provider for each PRSA product.

PRSA actuary.

9. (1) The determination of a PRSA actuary required under section 119(1) of the Act shall be made initially within 18 months or less of the first date of approval by the Board of a PRSA product for the PRSA provider and thereafter at annual intervals.

(2) The period within which the determination referred to in sub-article (1) shall be made shall be within two months of:-

(a)      the 31st day of December immediately following the first date of approval by the Board of a PRSA product of the PRSA provider or the 31st day of December in the next following year if that falls within 18 months of the said approval, and

(b)      each following 31st day of December commencing with the 31st day of December next following the first determination.

(3) The determination shall specify the extent to which the PRSA provider has complied with Part X of the Act and regulations made thereunder.

(4) The certificate of the PRSA actuary required under section 119(2) of the Act shall be signed on an annual basis within the period specified in sub-article (2) in relation to the determination and shall be in the form set out in Schedule C.

(5) A person shall not be qualified for appointment as a PRSA actuary unless he is a Fellow Member of the Society of Actuaries in Ireland.

Marketing of PRSAs.

10. The Board may impose such conditions or requirements on a PRSA provider in respect of advertising by the PRSA provider of its activities as such a provider as the Board considers necessary in the interest of:-

(a)      the orderly and proper regulation and supervision of PRSA providers, or

(b)      the protection of contributors.

SCHEDULE A

Article 3(1)

3 Month Report

INFORMATION TO BE CONTAINED IN 3 MONTH REPORT

1. Period to which the report relates.

2. Date report prepared.

3. Name of PRSA provider.

4. Address of registered office.

5. Name of person to whom enquiries relating to the report should be addressed.

6. Value of PRSA assets under each of the following headings:

 (a) collective investment schemes,

 (b) internal linked funds of life companies,

 (c) non-pooled fund assets.

7. Number of PRSA contracts operated under each of the following headings:

(a) standard PRSAs,

(b) standard PRSAs where default investment strategy is implemented by PRSA provider in accordance with section 103(1)(b),

(c) PRSAs other than Standard PRSAs,

(d) PRSAs other than Standard PRSAs where default investment strategy is implemented by PRSA provider in accordance with section 103(1)(b).

8. Number of PRSA contracts referred to at paragraph 7 where:-

(a)   contributor makes additional voluntary PRSA contributions within the meaning of section 787A(1) of the Taxes Consolidation Act, 1997 ,

(b)   contributor makes contributions referred to at subparagraph (a) and default investment strategy is implemented by PRSA provider in accordance with section 103(1)(b).

9.   (a)   Number of transactions where contributions are received under each of the following headings:

(i)      from PRSA products operated by other PRSA providers;

(ii)     from defined benefit schemes;

(iii)    from defined contribution schemes;

(iv)    from retirement annuity contracts;

(v)     from pension arrangements outside the State.

(b)   Value of contributions received under each heading at subparagraph (a)(i) to (v).

10. (a)  Number of transfers of PRSA assets made under each of the following headings:

(i)       to PRSA products operated by other PRSA providers;

(ii)      to defined benefit schemes,

(iii)     to defined contribution schemes,

(iv)     to pension arrangements outside the State.

(b)  Value of transfers made under each heading at subparagraph (a)(i) to (iv).

11.   Number of employers who have entered into a contractual arrangement to enable employees to participate in a PRSA.

12.   Number of contractual arrangements referred to at paragraph 11, under which at least one contributor has participated in a PRSA.

13.   Number of contributors participating in PRSAs under the contractual arrangements referred to at paragraph 12.

SCHEDULE B

Article 4(1)

3 Month Return

General

1. Period to which the return relates.

2. Name of PRSA provider.

3. Address of registered office.

4. Name of person to whom enquiries relating to the return should be addressed.

Contributor Details

5. Name, date of birth, and sex of contributor.

6. Marital status of contributor at contract start date.

7. Economic status and occupation of contributor at contract start date under the following headings:-

(a) Self employed of which

(i)     agricultural,

(ii)    other self employed.

(b) Employees, of which

(i)   managers, professional, technical and administrative,

(ii)  clerical and secretarial,

(iii)  trades, craft and related,

(iv)  personal and protective service,

(v)  sales,

(vi)  plant and machine operatives,

(vii) other employees,

(c) Not economically active/ unemployed.

8. Personal Public Service Number of contributor.

9. PRSA product details under the following headings:

(a) PRSA product name,

(b) PRSA product approval number issued by Pensions Board,

(c) Whether PRSA is a

(i)  standard PRSA, or

(ii) PRSA other than standard PRSA.

10. Whether default investment strategy was implemented in accordance with section 103(1)(b).

11. Date contributions commenced.

12. Whether contribution is paid via payroll deduction.

13. Total amount of contribution paid by or in respect of contributor from contract start date up to last day of period to which return relates under each of the following headings:

(a) employer,

(b) contributor,

(c) payment from

 (i) other PRSA,

 (ii) defined benefit scheme,

 (iii)defined contribution scheme,

 (iv) retirement annuity contract,

 (v) pension arrangement outside the State.

14. Where appropriate, value of transfer of PRSA asset made to any of the following:

(a) other PRSA,

(b) defined benefit scheme,

(c) defined contribution scheme,

(d) pension arrangement outside the State.

15. Value of contributors PRSA assets at end of period to which return relates, or where contract has been terminated during the period, the date the contract terminated and the value of the PRSA assets at that date.

16. Whether a payment to which section 787G(3) of the Taxes Consolidation Act, 1997 , applies has been paid to the contributor and the amount and date of such payment.

SCHEDULE C

Article 9(4)

CERTIFICATE OF PRSA ACTUARY UNDER ARTICLE 9(4) OF THE PERSONAL RETIREMENT SAVINGS ACCOUNTS (OPERATIONAL REQUIREMENTS) REGULATIONS, 2002

Name and address of PRSA provider:

Calendar year ended:

Name and address of PRSA actuary:

I hereby certify that, in respect of the above calendar year the amounts deducted by way of charges from all PRSA products operated by the above PRSA provider:-

(a)  comply with Part X of the Pensions Act, 1990 , and

(b) are consistent with the documentation disclosed by the PRSA provider to its customers pursuant to the Personal Retirement Savings Accounts (Disclosure) Regulations, 2002.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations prescribe the information which must be furnished to the Pensions Board by a PRSA provider, detailing the information to be contained in:

* the 3-month Report and the 3-month Return required under Section 99 of the Pensions Act, 1990 relating to the database of statistics to be maintained by the Board, and

* an Annual Report to be delivered by a PRSA provider to the Pensions Board.

The Regulations also provide for:

* delivery to the Pensions Board of the Audited Accounts of a PRSA provider;

* the requirements to be complied with in relation to the Default Investment Strategy;

* the periods within which the determination and certificate of a PRSA actuary required by Section 119 of the Pensions Act, 1990 must be made and the matters to which the determination should relate.

The Regulations also empower the Pensions Board to impose conditions or requirements on a PRSA provider in respect of advertising of PRSA products.