In April of this year, the IORPs II Directive was signed into Irish Law. The aim of this new Directive is
to facilitate the development of occupation retirement savings in the European Union.
One of the most noticeable effects this will have on the current pension market in Ireland will be on
small and one member pension schemes. The directive is increasing the auditing and Trustee
requirements on all schemes irrespective of size to ensure that all members and beneficiaries are
afforded equal protection. This will create a larger cost on all smaller and one member schemes.
There is a 5-year transition period in place for all one-member existing policies, but all existing Group
Schemes must be updated by the end of this year (31 st December 2021). All new schemes going
forward must adhere to these new requirements. Documentation will be published over the coming
months to provide further clarity on the effect this will have on the current pension arrangements in
Ireland.
Many Pension Providers are now in the process of creating a ‘Master Trust’ option to alleviate the
new cost and administrative requirements being implemented.
Are you looking to start a pension? Why not give us a call today to arrange a free 15-minute
consultation to discuss the best options for you.
