Pensions (Amendment) Bill 2013

BILL

Entitled

AN ACT TO AMEND TO THE PENSIONS ACT 1990 TO CHANGE THE CURRENT RULES FOR THE DISTRIBUTION OF ASSETS IN THE WINDING UP OF DEFINED BENEFIT PENSION SCHEMES AND TO PROVIDE FOR RELATED MATTERS.

1. The Pensions Act 1990 is amended by the substitution of the following for section 48(b) (b) where the scheme is wound up after 1 June 2002 (i) firstly, all additional benefits secured or granted by way of additional voluntary contributions or a transfer of rights from another scheme to which paragraph 2 of the Third Schedule relates to the extent that the rights to which the transfer relates were originally secured or granted by way of additional voluntary contributions, secondly, the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons, who, at the date of the winding up, were within the categories referred to in that paragraph, to the extent that they are not already discharged, except in the case of any person in respect of whom the aggregate of such benefits exceed 30,000 in which case the sum to be discharged shall be the aggregate of (I) 30,000 per annum plus

(ii)

(II)

50 per cent of any amount in excess of 30,000 which would but for the application of this paragraph be payable

and for the purposes of this paragraph, any payment to or in respect of those persons of the State pension(contributory) shall be disregarded, and

(iii)

thirdly, the benefits specified in paragraphs 2, 3 and 4 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up, were within the categories referred to in those paragraphs, to the extent that they are not already discharged, except in the case of any person in respect of whom the aggregate of such benefits exceed 30,000 in which case the sum to be discharged shall be the aggregate of (I) (II) 30,000 per annum plus 50 per cent of any amount in excess of 30,000 which would but for the application of this paragraph be payable

and for the purposes of this paragraph, any payment to or in respect of those persons of the State pension(contributory) shall be disregarded, before discharging the liabilities of the scheme for other benefits.. 2. A solvent firm shall not be allowed to close a defined benefit pension scheme except where the scheme has reached a minimum 90 per cent funding standard.

3. (1) This Act may be cited as the Pensions (Amendment) Act 2013.

(2) This Act shall come into operation on such day or days as may be fixed by order or orders of the Minister.

Acts referred to Pensions Act 1990 number 25 of 1990

Introduced by Deputy Willie ODea.