Legislation facilitating the introduction of sovereign annuities was passed by the Oireachtas in 2011 (Social Welfare and Pensions Act 2011).
A sovereign annuity is an annuity contract issued by insurance companies where the annual income payment is linked directly to payments under bonds issued by Ireland or any other EU Member State (known as reference bonds). Sovereign annuities can only be purchased by the trustees of occupational pension schemes (both defined benefit and defined contribution schemes). FAQs for trustees on sovereign annuities are available under the 'FAQs' section.
Insurance companies interested in offering such products must have them certified by the Authority under section 53B of the Pensions Act, 1990, as amended.
The application form for insurance companies to have their annuity products certified is available below. The Pensions Authority register of sovereign annuity policies is also available below.