Information on own-risk assessment timing and 2021 annual compliance statement

Thursday 11 November 2021: Today, the Pensions Authority publishes information for trustees on the timing of the own-risk assessment (ORA) and the form of the 2021 annual compliance statement (ACS) provided for under the Pensions Act, 1990, as amended (the Act).

Own-risk assessment

Section 64AL of the Act requires trustees to carry out and document an ORA:

at least once every three years, and
without delay following any significant change to the risk profile of the scheme or trust RAC.

Except for one-member arrangements established before 22 April 2021, the latest date by which a scheme’s initial ORA can be completed is 22 April 2024.

However, the Authority advises trustees to prepare their initial ORA at an earlier date in order to gain a comprehensive picture of their scheme’s risk profile and what consequent actions may be required to mitigate identified risks.

In particular, trustees of defined benefit schemes should align the preparation of the ORA with the scheme’s triennial actuarial valuation. Trustees of master trusts should carry out and document an ORA by July 2022 in accordance with the Authority’s current compliance timeline.

Trustees should also consider, in conjunction with the risk management key function holder, potential significant changes to the risk profile of the scheme that may trigger the preparation of a new ORA.

The Authority may request trustees to furnish it with the ORA and/or any other documentation considered necessary as part of its ongoing supervisory activity.

Annual compliance statement for 2021

Information on the ACS can be found in the Authority’s news alert of 2 September 2021.
The form to be used for the 2021 ACS is available under Related File(s) below. The ACS form includes references to the Code of Practice for trustees that will be published the week commencing 15 November 2021.
Trustees can expect that more detailed information will be required in the ACS form in future years and the Authority will provide further details on this in due course.

Forthcoming information

The Authority will publish the following information in the coming weeks:

final Code of Practice during the week commencing 15 November 2021,
guidance for one-member arrangements (OMAs) during the week commencing 15 November 2021,
instructions on outsourcing notification on 1 December 2021,
guidance for the public and employers about the minimum standards they should expect from master trust vehicles during the week commencing 13 December 2021, and
a findings report from the Authority’s engagements with master trust, DB and DC schemes during the week commencing 13 December 2021.

News by email alert service

You can sign up for free on the Authority’s website to receive an email alert anytime the Authority publishes information on its website.

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For further information, contact:

Technical Unit
The Pensions Authority
Tel: 01 613 1900
info@pensionsauthority.ie

Note to Editors

The Pensions Authority is the statutory body that supervises compliance with the requirements of the Pensions Act, 1990, as amended, by trustees of occupational pension schemes and trust RACs, PRSA providers, registered administrators and employers. The Pensions Authority also provides guidance and information to these stakeholders on their duties and responsibilities and advises the Minister for Social Protection on pension matters. See www.pensionsauthority.ie