The Irish Pensions Authority has put out a video message urging employers to engage with their pension scheme trustees on enhanced governance standards and take action if needed ahead of the 31 December 2023 deadline.

In the update, the authority said it wanted to remind employers that, if they haven’t done so already, they need to take action now to make sure the trustees of their pension schemes are following the new rules.

It noted that if, for cost or resource reasons, employers’ pension schemes are not able to meet the new rules, they also need to take action now to direct their scheme trustees to wind up the pension scheme and consider the alternative pension arrangements they can provide to their employees.

“If you are an employer with a scheme that has more than one member and you don’t meet the new rules, your trustees should have wound up this scheme by 31 December 2023,” the authority added.

Furthermore, employers were told need to be aware that, when trustees wind up a pension scheme, it can be slow process, especially for larger schemes.

“It can take significant time to identify and trace all employees with benefits within the scheme,” the authority continued.

“So, we are urging employers to not delay and engage immediately with your pension scheme trustees to take action.

“The rules for pension schemes have changed and there are new higher standards in place that are designed to ensure your employees’ pension benefits are better protected.

“This is a really good thing for your employees; however, implementing these standards mean a lot of extra time and resources need to go into the running of your pension scheme, and not all pension schemes may be able to meet these new higher standards.

“At the Pensions Authority, we want to remind employers that, if you haven’t done so already, you need to take action now to make sure the new rules are followed by the trustees running your pension scheme.”

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