Ireland’s Pensions Authority has published guidance for trustees on how to undertake their scheme’s own-risk assessment (ORA).

Trustees are required to carry out an ORA at least once every three years as set out in Section 64AL of the Pensions Act and Chapter 3 of the Pensions Authority’s Code of Practice for trustees. The purpose of the guidance is for trustees to use it to supplement their existing ORA process, rather than be used as a starting point.

The authority describes ORA as “one of their most important responsibilities” and, therefore, they must dedicate sufficient time and attention to ensuring it is fit for purpose.

“The authority reminds trustees that the ORA process should not be mechanistic. Further, the ORA process should be sufficiently considered and flexible to work with a scheme’s individual risk profile,” the authority stated.

The purpose of the ORA is to provide a “periodic, structured, and thorough assessment of the risks a scheme faces by its trustees”.

It must also identify the actions that are needed to effectively manage and where appropriate mitigate the risks identified.

“The ORA must provide an objective assessment of risk and not merely a rationalisation of the scheme’s current position. Its overall purpose is to ensure members’ benefits are well protected and that the scheme delivers good member outcomes,” the authority stated.

The full guidance can be found here.

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