New requirements, originating from an EU Directive on pensions (commonly referred to as IORP II), came into force in Ireland on 1 January 2023. The new requirements apply to all occupational pension schemes and mean that trustees of these schemes will have additional legal responsibilities and compliance obligations to meet. Who needs to take action? The IORP II requirements apply whether contributions are currently being paid into the pension scheme or not. So, if you have (or ever had) a company which offered a pension to your two or more employees or if you have (or ever had) a pension with your employer, then you need to take action as these new obligations will likely affect you. You should engage with, and instruct, the relevant parties about your pension. If you do not, you may be contacted by the Pensions Authority as the scheme will not be compliant with the new requirements. Fines may be imposed for non-compliance. What are the obligations? These new obligations on Irish pension schemes include: minimum qualification and experience standards for trustee boards; the appointment of key function holders for risk management, actuarial and internal audit; requirement for written policies on risk management, internal audit, remuneration and, where relevant, actuarial and outsourced activities; standards for internal controls, administrative and accounting procedures, contingency plans; and communications and information to be provided to active members, prospective members, deferred members, those nearing retirement and pensioners. The new requirements mean that trustees of such schemes needed to either wind up their scheme and move to an alternative structure (usually either a Master Trust or a Group Personal Retirement Savings Account (PRSA)) or ensure that the increased governance and oversight provisions of IORP II are met. Trustees who gave a formal commitment to wind up their scheme prior to 1 January 2023 are not required to meet the new IORP II requirements until 1 January 2024, provided that the scheme is wound up and all assets are transferred before 31 December 2023. The ‘formal commitment’ to wind up a scheme includes: A written instruction from the scheme employer to the trustees to wind up the scheme, or A notification from the trustees to the scheme members notifying them of the trustees’ intention to wind up the scheme. ·      The IORP II requirements apply whether contributions are currently being paid into the pension scheme or not. Therefore, you need to take action now on engaging with and instructing the relevant parties about your pension. If you do not, you may be contacted by the Pensions Authority as the scheme will not be compliant with the new requirements.  Fines may be imposed for non-compliance. Anything else? This may also affect you if there is a Pension Adjustment Order (PAO) on a pension. PAOs can be awarded on divorce, to ensure that both parties can access a pension fund at retirement. However, PAOs are linked to specific pensions only and if the scheme is wound up or moved, then there is a risk that the PAO may no longer apply. If there is a PAO in place please ensure that the scheme holder speaks to a solicitor.   For further information, you can watch the Pensions Authority video on compliance here.