S.I. No. 501/2002 - Personal Retirement Savings Accounts (Disclosure) Regulations, 2002

The Minister for Social and Family Affairs, in exercise of the powers conferred on her by sections 5 111 , 113 , 115 and 116 of the Pensions Act, 1990 (No. 25 of 1990), hereby makes the following Regulations:-

Citation

1. These Regulations may be cited as the Personal Retirement Savings Accounts (Disclosure) Regulations, 2002.

Definitions.

2. (1) In these Regulations-

“the Act” means the Pensions Act, 1990 (No. 25 of 1990);

“affiliated company” means a company (the ‘second company’) which is a subsidiary or parent company (within the meaning of section 155 of the Companies Act, 1963 (No 33 of 1963)) of the PRSA provider, or where both the PRSA provider and the second company are under the control of a third company;

“connected person”, in relation to a PRSA provider, intermediary or sales employee shall be construed in accordance with sub-article (2);

“intermediary remuneration”, in relation to a PRSA contract sold to a contributor, means-

(a) the cost of payments, benefits and services paid or provided by a PRSA provider or connected persons of the PRSA provider to an intermediary or connected persons of the intermediary, and

(b) in the case of an intermediary who is a connected person of the PRSA provider, an amount in respect of a notional profit margin sufficient to achieve comparability in the total amount of intermediary remuneration in respect of that PRSA contract with an intermediary who is not a connected person of that PRSA provider;

“life assurance” has the same meaning as in the Life Regulations;

“Life Regulations” means the European Communities (Life Assurance Framework Regulations, 1994 ( S.I. No. 360 of 1994 );

“sales employee” means a person employed by a PRSA provider or an affiliated company for the purposes of either or both the negotiation and conclusion of PRSA contracts with contributors and who receives sales remuneration from the PRSA provider or an affiliated company in respect of his or her employment;

“sales remuneration”, in relation to a PRSA contract sold by a sales employee means -

(a)      the cost of remuneration and other payments, benefits and services equivalent to intermediary remuneration, paid or provided by a PRSA provider or connected persons of the PRSA provider to a sales employee of the PRSA provider or connected persons of the sales employee in connection with a PRSA contract sold to a contributor, and

(b)        an amount in respect of a notional profit margin sufficient to achieve comparability in the total amount of sales remuneration in respect of that PRSA contract with the intermediary remuneration which would have been payable in respect of that PRSA contract to an intermediary who is not a connected person of the PRSA provider.

(2) Any question whether a person is connected with another shall be determined in accordance with the following provisions of this sub-article (any provision that one person is connected with another being taken to mean also that that other person is connected with the first-mentioned person):

(a)      a person is connected with an individual if that person is a relative of the individual;

(b)      a person, in his or her capacity as a trustee of a trust, is connected with an individual who or any of whose children or as respects whom any body corporate which he or she controls is a beneficiary of the trust;

(c)      a person is connected with any person with whom he or she is in partnership;

(d)      a company is connected with another person if that person has control of it or if that person and persons connected with that person together have control of it;

(e)      any 2 or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.

(3) In sub-articles (1) and (2) “control” has the meaning assigned to it by section 432 of the Taxes Consolidation Act, 1997 (No. 39 of 1997).

(4) In these Regulations:-

(a)      a reference to an article or Schedule is a reference to an article of or Schedule to these Regulations, unless it is indicated that reference to some other provision is intended, and

(b)      a reference to a sub-article, paragraph or subparagraph is a reference to a sub-article, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

Preliminary disclosure certificate.

3. (1) The Preliminary Disclosure Certificate required under section section 111 of the Act with respect to a Standard PRSA shall contain the information specified in and be substantially in the form set out in Part I of Schedule A. The Preliminary Disclosure Certificate may only deviate from the form and content set out in Part I of Schedule A in accordance with article 7.

(2) Subject to sub-article (4), a Preliminary Disclosure Certificate required under section 111 of the Act with respect to a PRSA other than a Standard PRSA shall contain the information specified in and be substantially in the form set out in Part II of Schedule A. Other than as provided in article 3(4) the Preliminary Disclosure Certificate shall be specific to the person for whom it is prepared and may only deviate from the form and content set out in Part II of Schedule A in accordance with article 7.

(3) A Preliminary Disclosure Certificate prepared in accordance with sub-articles (1) or (2) shall be prepared in accordance with Schedule B.

(4) Where, before offering to enter into a contract with a person, it is not practicable to give any of the values applicable to that person contained in the Preliminary Disclosure Certificate specified in Part II of Schedule A, then the Preliminary Disclosure Certificate shall contain values which would apply to a PRSA contract that would be expected to be typical of the contracts of that product issued by the provider. If a PRSA provider issues a Preliminary Disclosure Certificate in accordance with this sub-article then that Certificate and the Statement of Reasonable Projection issued in accordance with article 4(3) must contain the additional warning notices set out in Part III of Schedule A.

Statement of reasonable projection.

4. (1) Subject to sub-articles (2), (3) and (4), a Statement of Reasonable Projection required under section 112 of the Act shall contain the information specified in and be substantially in the form set out in Part I of Schedule C. The Statement of Reasonable Projection may only deviate from the form and content set out in Schedule C in accordance with article 7.

(2) A Statement of Reasonable Projection shall be prepared in accordance with Schedule B.

(3) A Statement of Reasonable Projection required under section 112(2)(a) of the Act shall also contain the cancellation notice set out in Part II of Schedule C and the information regarding charges set out in Part III of Schedule C provided however that if the conclusion of the PRSA contract also involves conclusion of a contract of life assurance, a PRSA provider who complies with the Life Regulations will not be required to include in the Statement of Reasonable Projection the cancellation notice set out in Part II of Schedule C.

(4) In the case of a Statement of Reasonable Projection required under section 112(2)(b) of the Act, paragraph 1(g) of Part I of Schedule C shall show the level of benefits to be reasonably expected both before and after the increase in the number or amount of charges.

Certificate of comparison and written statement.

5. (1) A Certificate of Comparison required under section 113(1)(a of the Act shall contain the information and be substantially in the form set out in Part I of Schedule D. The Certificate of Comparison shall be prepared on the basis of the rules set out in Part II of Schedule D. The Certificate of Comparison may only deviate from the form and content set out in Part I of Schedule D in accordance with article 7.

(2) The level of professional indemnity insurance required under section 113(4) of the Act shall be an amount not less than €1,000,000 for each and every claim.

6. A Written Statement required under section 113(1)(b) of the Act shall be prepared on the basis of the rules set out in Schedule E.

Preparation of forms.

7. A PRSA provider may adapt the prescribed content and format requirements in Schedules A, C and Part I of Schedule D but only when it can demonstrate to the Board that:

(a)      this is necessary to reflect the terms and nature of a particular PRSA product, and

(b)      the documents would otherwise give rise to the risk of misleading PRSA contributors or potential PRSA contributors.

SCHEDULE A

Article 3 (1)

PART I

PRELIMINARY DISCLOSURE CERTIFICATE FOR A STANDARD PRSA

1.         The certificate shall contain the following information:-

(a)        Benefits

Under this heading include a brief description of the benefits provided by the Standard PRSA and the manner in which those benefits may be taken by the contributor.

(b)        Investment Strategy

Under this heading describe the Default Investment Strategy and any other investment strategy applicable to the Standard PRSA.

(c)        Tax

Under this heading include information in relation to the tax issues relevant to the Standard PRSA including tax relief available on contributions and the extent of such tax reliefs, the tax treatment of income and gains earned under the PRSA contract and the tax treatment of benefits taken from the PRSA.

(d)        Risk Factors

Under this heading give a brief description of the factors which may have an adverse effect on performance or are otherwise material to the decision to invest, including investment risks, the restriction on taking benefits early and the consequences of not paying contributions.

2.         The Projected Level of Benefits

Subject to paragraph 3, the certificate shall contain the following information and table duly completed in the following form:-

“The benefits that will emerge from your Standard PRSA will depend, in particular, on the level of your contributions, how long you pay those contributions and the investment return achieved.

The table below illustrates the retirement income for life payable monthly from age 65 projected to be obtained from contributions of different amounts starting from different ages. This retirement income has been adjusted for inflation so that the amounts are shown in terms of current prices.

TABLE OF BENEFITS

This table shows that if contributions of €100 per month are made for 35 years from age 30 to 65, then the retirement income payable for life from age 65 is projected to be €_____ per month.

IMPORTANT

THESE ILLUSTRATIONS ASSUME AN INVESTMENT RETURN BEFORE RETIREMENT OF (RATE)% PER ANNUM AND INFLATION OF (RATE)% PER ANNUM. THESE RATES ARE FOR ILLUSTRATION PURPOSES ONLY AND ARE NOT GUARANTEED.

ACTUAL INVESTMENT GROWTH WILL DEPEND ON THE PERFORMANCE OF THE UNDERLYING INVESTMENTS AND MAY BE MORE OR LESS THAN ILLUSTRATED.”

3.         The information in paragraph 2 is specified unless the certificate includes the information specified in paragraph 2 of Part II of this Schedule.

4.         Warnings

The certificate shall contain the following warning notices:-

“WARNINGS

It is important to make adequate provision for your retirement. At the date of this Certificate the Old Age (Contributory) Pension payable under the Social Welfare (Consolidation) Act, 1993 to a single person who is qualified to receive the maximum rate amounts to €______ and equates to [______%] [   ] percentage of the latest yearly figure for gross average earnings as published by the Central Statistics Office for all industrial workers in all industries.

The value of your assets, and accordingly, the level of your benefits will depend upon the value of the underlying investments of the Standard PRSA and the income which they earn. These values are not guaranteed, and may fall from time to time, as well as rise.

This Standard PRSA is intended to provide benefits over the duration of your life from retirement and it should be viewed as a long term investment.”.

5.         Information on Charges

(a)        In this section of the certificate, the PRSA provider shall describe in detail the charges levied under the Standard PRSA contract and include information on how those charges will operate and how they may change over time.

(b)        The certificate, in this section, shall also state as follows:-

“The maximum permitted level of charges on a Standard PRSA such as this is limited by law to 5% of each contribution and 1% per annum of the assets in the Account.”.

6.         Cooling Off Period

Under this heading the certificate shall contain, in a prominent position, the following words:-

“This contract is not enforceable until a period of 15 days has elapsed from the date on which you are given a Statement of Reasonable Projection and you may cancel this contract at any time during that period.”.

7.         Certificate

The Preliminary Disclosure Certificate shall contain the following words at the end of the certificate:-

“This Preliminary Disclosure Certificate has been prepared under the provisions of section 111 of the Pensions Act, 1990 for disclosure in connection with this Standard PRSA on the [date]:-

Signed:__________________________________

(Name of Director)

____________________________________

(Name of Provider and address of registered office)

Date                ___________________________________”.

PART II

PRELIMINARY DISCLOSURE CERTIFICATE FOR A PRSA NOT BEING A STANDARD PRSA

Article 3 (2)

1.         The certificate shall contain the following information:-

(a)        Benefits

Under this heading include a brief description of the benefits provided by the PRSA and the manner in which these benefits may be taken by the contributor.

(b)        Investment Strategy

Under this heading describe the Default Investment Strategy and any other strategy applicable to the PRSA.

(c)        Tax

Under this heading include information in relation to the tax issues relevant to the PRSA including tax relief available on contributions and the extent of such tax reliefs the tax treatment of income and gains earned under the PRSA contract and the tax treatment of benefits taken from the PRSA.

(d)        Risk Factors

Under this heading give a brief description of the factors which may have an adverse effect on performance or are otherwise material to the decision to invest, including investment risks, the restriction on taking benefits early and the consequences of not paying contributions.

2.         The Projected Level of Benefits

The certificate shall contain the following information and table duly completed in the following form:-

“The benefits that will emerge from your PRSA will depend, in particular, on the level of your contributions, how long you pay those contributions and the investment return achieved. The table below illustrates the projected benefits that might be obtained from this PRSA contract. A description should be given here of the contribution pattern and the term of the contract.

TABLE OF BENEFITS

IMPORTANT

THE PROJECTIONS SHOWN ABOVE MAKE NO ALLOWANCE FOR THE EFFECT OF INFLATION WHICH WILL REDUCE THE VALUE OF THE PROJECTED BENEFITS. THE PROJECTED MATURITY VALUE OF [€______] SHOWN IN THE TABLE IS WORTH [€______] IN TERMS OF CURRENT PRICES. THIS MATURITY VALUE COULD PURCHASE A RETIREMENT INCOME FOR THE REST OF YOUR LIFE STARTING FROM THAT DATE OF [€______] PER MONTH IN TERMS OF CURRENT PRICES.

THESE ILLUSTRATIONS ASSUME AN INVESTMENT RETURN BEFORE RETIREMENT OF (RATE)% PER ANNUM AND INFLATION OF (RATE)% PER ANNUM. THESE RATES ARE FOR ILLUSTRATION PURPOSES ONLY AND ARE NOT GUARANTEED.

ACTUAL INVESTMENT GROWTH WILL DEPEND ON THE PERFORMANCE OF THE UNDERLYING INVESTMENTS AND MAY BE MORE OR LESS THAN ILLUSTRATED.”.

3.        The table set out at paragraph 2:-

(a) shall be in annual steps for the first 5 years and every five years subsequently. The year of maturity shall be shown in a separate line.

(b) may be disclosed to a potential contributor as a separate document provided:-

(i)           it is delivered at the same time as the Preliminary Disclosure Certificate;

(ii)          there is a clear statement in the Preliminary Disclosure Certificate that the table is being furnished as part of the Preliminary Disclosure Certificate but as a separate document; and

(iii)         the form of presentation chosen does not diminish the prominence of the information given.

4.        Warnings

The certificate shall contain the following warning notices:-

“WARNINGS

It is important to make adequate provision for retirement. At the date of this Certificate the Old Age (Contributory) Pension payable under the Social Welfare (Consolidation) Act, 1993 to a single person who is qualified to receive the maximum rate amounts to €______ and equates to [____%] [   ] percentage of the latest yearly figure for gross average earnings as published by the Central Statistics Office for all industrial workers in all industries.

The value of your assets, and accordingly, the level of your benefits will depend upon the value of the underlying investments of the PRSA and the income which they earn. These values are not guaranteed, and may fall from time to time, as well as rise.

This PRSA is intended to provide benefits over the duration of your life from retirement and it should be viewed as a long term investment.

It is recommended that you seek professional financial advice about the nature of this PRSA before signing the PRSA contract.”.

5.        Intermediary Remuneration

(a)      The certificate shall contain a table duly completed relating to intermediary/sales remuneration in the following form:-

“ILLUSTRATIVE TABLE OF INTERMEDIARY REMUNERATION AND SALES REMUNERATION

This remuneration is paid for by us from the charges we make on your contract.”.

(b)      This table shall be in annual steps for the first 5 years and every five years subsequently. The year of maturity shall be shown as a separate line.

(c)      This table may be disclosed to a potential contributor as a separate document provided:-

(i)       it is delivered at the same time as the Preliminary Disclosure Certificate;

(ii)      there is a clear statement in the Preliminary Disclosure Certificate that this table is being furnished as part of the Preliminary Disclosure Certificate but as a separate document; and

(iii)     the form of presentation chosen does not diminish the prominence of the information given.

6.        Information on Charges

In this section of the certificate, the PRSA provider shall describe in detail the charges levied under the PRSA contract and include information on how those charges will operate and how they may change over time.

The certificate shall also contain the following words under this heading:-

“For your contract, the total effect of these charges on the benefits at maturity projected above is equivalent to a single charge of [   ]% per annum of the assets held under the contract.”.

This information may be disclosed to a potential contributor in a separate document provided:-

(a)      it is delivered at the same time as the Preliminary Disclosure Certificate;

(b)      there is a clear statement in the Preliminary Disclosure Certificate that this is being furnished as part of the Preliminary Disclosure Certificate but as a separate document; and

(c)      the form of presentation chosen does not diminish the prominence of the information given.

7.        Cooling Off Period

Under this heading the certificate shall contain, in a prominent position, the following words:-

“This contract is not enforceable until a period of 15 days has elapsed from the date on which you are given a Statement of Reasonable Projection and you may cancel this contract at any time during that period.”.

8.        Certificate

The Preliminary Disclosure Certificate shall contain the following words at the end of the certificate:-

“This Preliminary Disclosure Certificate has been prepared under the provisions of section 111 of the Pensions Act, 1990 for disclosure in connection with this PRSA on [date]. This PRSA is not a Standard PRSA.

Signed: _____________________________

(Name of Director)

_______________________________

(Name of Provider and address of registered      office)

Date:          _________________________________”.

PART III

ADDITIONAL WARNING NOTICES REQUIRED BY ARTICLE 3(4)

Article 3 (4)

1.         Preliminary Disclosure Certificate

The additional warning notice for a Preliminary Disclosure Certificate referred to in article 3(4) shall be in the following form and be set out in paragraph 2 of the certificate immediately before the words “TABLE OF BENEFITS”: -

“We do not have sufficient information to produce a certificate that reflects your specific circumstances. Consequently, the level of contributions, projected benefits and intermediary remuneration shown here may be misleading. If you accept the terms of this contract, we will subsequently send you a Statement of Reasonable Projection that will reflect your specific circumstances. You will then have 15 days in which you may cancel the contract if you wish.”

2.         Statement of Reasonable Projection

The additional warning notice for a Statement of Reasonable Projection referred to in article 3(4) shall be in the following form and be set out in paragraph 1(g) of Schedule C as an additional note to the table set out in that paragraph:-

“The level of contributions, projected benefits and intermediary remuneration may be substantially different from the Preliminary Disclosure Certificate you have previously received. If you are dissatisfied you have 15 days from being given this document to cancel the contract using the cancellation notice provided with this Statement of Reasonable Projection.”

SCHEDULE B

Article 3 (3) and 4 (2)

PART I

1.         A Preliminary Disclosure Certificate shall be prepared using a single rate of investment return prior to taking benefits, before deduction of all anticipated charges relating to a proposed contract, of:-

(a)      6% per annum in the case of persons proposing to follow a default investment strategy; and

(b)      not more than 6% per annum in the case of all other persons.

2.         A Statement of Reasonable Projection shall be prepared using a single rate of investment return prior to taking benefits, before deduction of all charges relating to a contract, of:-

(a)    6% per annum in the case of contracts following a default investment strategy, and

(b)    not more than 6% per annum in the case of all other contracts.

PART II

ILLUSTRATIVE TABLE OF INTERMEDIARY REMUNERATION AND SALES REMUNERATION

Where an arrangement exists between a PRSA provider and a broker or an agent under which payments, benefits or services may be provided by the PRSA provider to the broker or the agent which are contingent on the broker or the agent placing a minimum level of business with the PRSA provider, then, where a contract contributes to the achievement of such contingent payments, benefits or services, a statement describing the arrangement that applies shall immediately follow the Illustrative Table of Intermediary Remuneration and Sales Remuneration in the Preliminary Disclosure Certificate in Part II of Schedule A and in the Statement of Reasonable Projection in Part III of Schedule C.

SCHEDULE C

Article 4 (1) and 4 (4)

PART I

STATEMENT OF REASONABLE PROJECTION FOR A PRSA

1.         A Statement of Reasonable Projection shall contain the following information in the following form:-

“(a)        (i)        Name of Contributor :

______________________________________

(ii)        Date of Birth: __________________________

(iii)       Sex: ___________________

(b)     Name of PRSA : _____________________________________________

(c)     Name of PRSA Provider : _____________________________________

(d)     Date of signature of PRSA contract : ____________________________

(e)     Projected retirement date of contributor : _________________________

(f)      Value of your PRSA assets as at date of statement : ________________

(g)     The level of benefits to be reasonably expected

(i)         The value of your PRSA assets as shown above if no further contributions are made could be expected under current circumstances to produce an income for life commencing at age [65] of [ €   ] per month in terms of current prices.

(ii)        The value of your PRSA assets as shown above, together with future contributions which it is assumed you will pay will produce the following benefit:-

Note: The projections shown above make no allowance for the effect of inflation which will reduce the value of the projected benefits. The projected maturity value of [€______] shown in the table is worth [€______] in terms of CURRENT PRICES. This maturity value could purchase a retirement income for the rest of your life starting from that date of [€______] per month in terms of current prices.

IMPORTANT

THESE ILLUSTRATIONS ASSUME AN INVESTMENT RETURN BEFORE RETIREMENT OF (RATE)% PER ANNUM AND INFLATION OF (RATE)% PER ANNUM. THESE RATES ARE FOR ILLUSTRATION PURPOSES ONLY AND ARE NOT GUARANTEED.

ACTUAL INVESTMENT GROWTH WILL DEPEND ON THE PERFORMANCE OF THE UNDERLYING INVESTMENTS AND MAY BE MORE OR LESS THAN ILLUSTRATED.”.

2.         The table set out at paragraph 1(g) shall be in annual steps for the first five years and every five years subsequently. The year of maturity shall be shown in a separate line.

3.         Information on Charges

In the statement, the PRSA provider shall describe in detail the charges levied under the PRSA contract and include information on how those charges will operate and how they may change over time.

4.         Warnings

(a)      The statement shall contain the following warning notices:-

“WARNINGS

The value of your assets and accordingly, the level of your benefits will depend upon the value of the underlying investments of the PRSA and the income which they earn. These values are not guaranteed, and may fall from time to time, as well as rise.

It is important to make adequate provision for retirement. This PRSA is intended to provide benefits over the duration of your life from retirement and it should be viewed as a long term investment.”.

(b)      The statement for a PRSA other than a Standard PRSA shall contain the following additional warning notice:-

“It is recommended that you seek professional financial advice about the nature of this PRSA contract.”.

5.         Social Welfare Pension

The statement shall contain the following paragraph completed appropriately:-

“At the date of this Statement the Old Age (Contributory) Pension payable under the Social Welfare (Consolidation) Act, 1993 to a single person who is qualified to receive the maximum rate amounts to €______ and equates to [______%] [   ] percentage of the latest yearly figure for gross average earnings as published by the Central Statistics Office for all industrial workers in all industries.”.

6.         Certificate

The Statement of Reasonable Projection shall contain the following words at the end of the statement:-

“This Statement of Reasonable Projection has been prepared under the provisions of sections 112 and 116 of the Pensions Act, 1990 on the [date]:-

Signed:_______________________________________

(Name of Director)

___________________________________

(Name of Provider and address of registered office)

Date _________________________________________”.

PART II

CANCELLATION NOTICE TO BE INCLUDED IN STATEMENT OF REASONABLE PROJECTION FURNISHED FOR PURPOSES OF SECTION 112(2)(a) OF THE PENSIONS ACT, 1990

Article 4 (3)

“This contract is not enforceable until a period of 15 days has elapsed from the date on which you are given this Statement of Reasonable Projection and you may cancel this PRSA contract without penalty if you give written notice to this effect in the form set out below within 15 days of receipt of this Statement.

To:        [name of PRSA provider]

 [address of PRSA provider]

I hereby give notice in accordance with my rights under Part X of the Pensions Act, 1990 to cancel the PRSA contract to which this notice relates.

Signed ___________________________________

Dated ____________________________________”.

PART III

Article 4 (3)

1.         The Statement of Reasonable Projection prepared for the purposes of section 112(2)(a) of the Act shall contain the following additional paragraphs under the heading “3. Information on Charges”:-

(a)      “For your contract, the total effect of these charges on the benefits at maturity projected above is equivalent to a single charge of [   ]% per annum of the assets held under the contract.”

(b)      “ILLUSTRATIVE TABLE OF INTERMEDIARY REMUNERATION AND SALES REMUNERATION

This remuneration is paid for by us from the charges we make on your contract.”

2.         This table set out at paragraph 1 shall be in annual steps for the first 5 years and every five years subsequently. The year of maturity shall be shown as a separate line.

SCHEDULE D

Article 5 (1)

PART I

CERTIFICATE OF COMPARISON ISSUED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 113 OF THE PENSIONS ACT, 1990

1.         The certificate shall contain the following information:-

(a)      Name of Occupational Pension Scheme: _____________________________

(b)      Name of Personal Retirement Savings Account: ________________________

(c)      Table of Benefits

(d)      Comparison and Analysis of Benefits

Comparison and analysis of the benefits set out in the above table shall be given in accordance with Part II of Schedule D of the Personal Retirement Savings Accounts (Disclosure) Regulations, 2002.

2.         The Certificate of Comparison of Benefits shall be given together with a Written Statement in accordance with Schedule E of the Personal Retirement Savings Accounts (Disclosure Regulations, 2002.

3.         The certificate shall include a certificate in the following form:-

“It is hereby certified that

(a)      the table set out at paragraph 1 above and the comparison and analysis set out at paragraph 2 above contains a true and fair comparison of:-

(i)      the benefits which may accrue from [insert name of scheme]; and

(ii)     the benefits which may accrue from [insert name of PRSA]

in respect of [insert name of member of scheme].

(b)      This Certificate of Comparison has been prepared under the provisions of section 113 of the Pensions Act, 1990 and in full compliance with the requirements of the Personal Retirement Savings Accounts (Disclosure) Regulations, 2002 on [date].

PART II

RULES RELATING TO COMPLETION OF A CERTIFICATE OF COMPARISON FOR THE PURPOSES OF SECTION 113(1)(a) OF THE PENSIONS ACT, 1990

Article 5 (1)

1.         A Certificate of Comparison shall provide a comparison of the potential benefits available to a person from a scheme of which he is a member and the potential benefits that would be available under a PRSA and that comparison shall be prepared on a basis which is clear, fair and not misleading.

2.         The Certificate of Comparison shall contain the following:-

(a)      a statement of the rates of return which would have to be achieved under the PRSA in order to provide the same level of benefits as those which would be afforded by the scheme if the person were to retire at normal retirement date (the “Target Benefits”);

(b)      if early retirement would be materially more favourable to the person than retirement at normal retirement date, a statement of the rates of return which would have to be achieved under the PRSA in order to provide the same benefits as that afforded by the scheme, assuming early retirement at a date on which the person may be expected, or will have the option, to retire;

(c)      a statement of the value of the benefits payable on the death of the person, under the PRSA and under the scheme, on the assumption that the person were to die on the day after the date on which the PRSA contract is assumed to have commenced;

and, in addition, if benefits are assumed to commence in less than one year:-

(d)      a statement of the annuity which might be purchased utilising all of the assets held under the PRSA and of the comparable Target Benefits.

SCHEDULE E

RULES RELATING TO COMPLETION OF A WRITTEN STATEMENT FOR THE PURPOSES OF SECTION 113(1)(b) OF THE PENSIONS ACT, 1990

Article 6

1.         The Written Statement shall include with equal prominence a summary of the advantages and the disadvantages of transferring from the scheme to the PRSA.

2.         The Written Statement shall contain a financial analysis which explains the decision to transfer from the scheme to the PRSA.

3.           The Written Statement shall:-

(a)      identify all the rights and benefits available to the person under the scheme and carefully consider the effect of replacing them with the benefits available under the PRSA; the following factors shall be taken into account relating to the scheme:-

(i)          spouse's, dependants' and children's pensions;

(ii)         early retirement provision, including retirement on ill health;

(iii)         revaluation rates both in deferment and payment, whether they are guaranteed or discretionary (and if discretionary, whether likely to continue);

(iv)         ancillary benefits (including tax free cash or lump sum death benefits);

(v)          transfer club arrangements, where applicable;

(vi)         the member's contribution and the employer's contribution;

(vii)        benefits on leaving service;

(viii)       whether or not eligibility for other benefits, such as medical or health insurance, is dependent on being a member of the scheme, and

(ix)         the financial security of the scheme, by reference (for example) to the last actuarial statement or the most recent trustees' report and accounts;

(b)      take into account the following additional factors:-

(i)           whether or not the employer would contribute to the PRSA, and

(ii)          the charging structure of the PRSA and its impact on transfer values in early years,

(c)      in the case of a proposed transfer from a defined benefit scheme to a PRSA the following additional factors shall be taken into account and dealt with in the Written Statement:-

(i)           the different investment risks of a PRSA and a defined benefit scheme;

(ii)          the impact of fluctuations in annuity rates on the size of the eventual benefit;

(iii)         any reduction in immediate death benefits; and

(iv)         a transfer value analysis including an indication of the rate of the growth needed to ensure that the person is no worse off as a result of any transfer and

(d)      in addition to the factors referred to at subparagraphs (a) to (c), the following additional factors concerning the person concerned should be considered in the Written Statement:-

(i)           the possibility of incurring early transfer penalties and new charges; and

(ii)          how the transfer affects the investment risk.

EXPLANATORY NOTE

[This note is not part of the Instrument and does not purport to be a legal interpretation]

These Regulations govern the disclosure of information to be made by or on behalf of a PRSA provider both prior to the conclusion of a PRSA contract and at specified times after a PRSA contract has been concluded.

Section 111 of the Pensions Act, 1990 , as amended by the Pensions (Amendment) Act, 2002 , provides for the issue of a Preliminary Disclosure Certificate (PDC) to specify, inter alia, the level of benefits which the person could reasonably expect to receive. The PDC must be issued prior to the conclusion of a PRSA contract. Section 112 provides for a Statement of Reasonable Projection to be issued at conclusion of the contract and annually, containing more specific information as to the projected level of benefits. These Regulations provide for the form, content and the manner of preparation of those forms.

Section 113(4) of the Pensions Act provides that a PRSA provider cannot accept a transfer of funds from an occupational pension scheme unless a Certificate of Comparison and Written Statement has issued to the contributor. The certificate sets out the comparison of benefits as between the scheme and the PRSA and the statement sets out the reasons why such a transfer is or is not in the interest of the person wishing to make such a transfer. These regulations prescribe the form and content and the manner of preparation of the certificate and the statement.

Section 113 also provides that the person preparing such certificates or statements must have professional indemnity insurance, the amount of which is set in these Regulations at €1,000,000 per claim