There is no comprehensive legislation governing occupational pension schemes. The legal regulation of occupational pension schemes has grown up haphazardly and is drawn from and influenced by many different branches of law.
Tax law
Pension contributions and investment returns have very valuable tax advantages and this requires them to be approved of by the Revenue Commissioners. The principal legislation is contained in Chapter II, Part I of the Finance Act, 1972.
Law of trusts
Because of the “irrevocable trust” requirements of the Finance Act, 1972, occupational pension schemes are established by means of a trust and their operation is thus subject to the law of trusts. Company law
Many of the trustees of pension trusts are corporate trustees and as such are also subject to the Companies Acts. Law of contract
The relationship of employer and employee is based upon a contract of employment. The membership, contributions and benefits of an occupational pension scheme are a consideration that exists on either side of such contract.
Employment law
The relationship between employer and employee is central to the functioning of an occupational pension scheme. Thus the many statutory provisions in the area of employment, giving rights to employees have some relevance to pensions.
Social Welfare law:
There is a strong relationship between occupational pensions and State pensions. Most occupational pension schemes are integrated with the State retirement pension.
European Community law
The provisions of the Treaty establishing the European (Economic) Community have had far reaching consequences for occupational pensions and much of their legal regulation is now rooted in Community law.
Pensions Act
As a result of disquiet felt about the regulation of occupational pensions the Pensions Act 1990 was introduced. The Act established the Pensions Board and introduced a system for the supervision of occupational pension schemes. It has been subsequently amended in particular by the Pensions (Amendment) Act 1996.
Family law
The Family Law Act 1995 regulates for the consequences of marriage breakdown and part of it deals with pension schemes. The Family Law (Divorce) Bill make similar provision.
Such an amalgam of law makes for a complex situation whenever it is sought to identify where legal duties and responsibilities ought to lie in respect of occupational pension schemes.
The system of retirement provision in Ireland has evolved through many stages into its present form. In order to understand the current system of retirement provision it is worthwhile to look at the historical development of occupational pension schemes.
An important part of this development are the parallel developments in state provision in respect of its employees and in state provision for the elderly.
Maintained by
Sean E. Quinn
Barrister-at-Law