The Pensions Authority publishes financial management guidelines for defined benefit schemes

Friday 22 May 2015: Today the Pensions Authority has published financial management guidelines for defined benefit schemes.

The guidelines set out what the Authority sees as good practice for trustees to follow in order to understand and manage the funding and investment of their defined benefit scheme. Trustees should ensure that they have access to adequate actuarial and investment advice. However, the responsibility for the scheme always rests with the trustees, who should therefore ensure that they understand the advice they receive and the decisions they as trustees are required to take.

One of the functions of the Authority under the Pensions Act is to issue guidelines on the duties and responsibilities of trustees. Accordingly these guidelines for defined benefit schemes are intended to assist trustees by providing practical guidance on how they set about the day to day tasks of managing the current and future financial situation of their scheme. The guidelines supplement the Authority’s Trustee Handbook and do not set out all of the trustees’ compliance obligations.

The Pensions Regulator, Brendan Kennedy said: “Trustees of defined benefit schemes are faced with complicated financial responsibilities. The guidelines published today set out the Authority’s view of good practice in managing these responsibilities. Where, for whatever reason, the Authority becomes involved with a scheme, we will assume that the trustees have the information and understanding as set out in these guidelines.”

ENDS

For further information, contact:

David Malone
Head of Operations and Communications
The Pensions Authority
Tel: (01) 613 1900

Note to Editors

The Pensions Authority is the statutory body established by the Pensions Act, 1990 to regulate occupational pension schemes, trust based RACs and Personal Retirement Savings Accounts (PRSAs) www.pensionsauthority.ie