S.I. No. 10/2006 - Coras Iompair Eireann Superannuation Scheme 1951 (Amendment) Scheme (Confirmation) Order 2006

The Minister for Transport, in exercise of the powers conferred on him by Section 44 (4) of the Transport Act 1950 (No. 12 of 1950) and Article 4 of the Córas Iompair Éireann (Additional Powers) Order 1988 ( S.I. No. 381 of 1988 ) and the Communications (Transfer of Departmental Administration and Ministerial Functions) (No. 2) Order 1987 ( S.I. No. 92 of 1987 ) (as adapted by the Public Enterprise (Alteration of Name of Department and Title of Minister) Order 2002 ( S.I. No. 305 of 2002 )), after consultation with the Minister for Finance, hereby order as follows.

1.       This Order may be cited as the Córas Iompair Éireann Superannuation Scheme 1951 (Amendment) Scheme (Confirmation) Order 2006.

2.       In this Order “amending Scheme” means the Scheme amending the C.I.E. Superannuation Scheme 1951 (confirmed by the Córas Iompair Éireann Superannuation Scheme 1951 (Confirmation) Order 1951 ( S.I. No. 353 of 1951 )), prepared by Córas Iompair Éireann and submitted to the Minister for Transport under section 44 (5) of the Transport Act, 1950 (No. 12 of 1950) and which amending Scheme is set out in the Schedule to this Order.

3.       (1)     The amending Scheme is confirmed.

(2)     (a)      The amending Scheme, with the exception of Article 4, is deemed to have come into operation on 1 June 2002.

(b)      Article 4 of the amending Scheme comes into operation on 17 January 2006.

SCHEDULE

CÓRAS IOMPAIR ÉIREANN SUPERANNUATION SCHEME 1951 (AMENDMENT) SCHEME 2006

1.       Interpretation

In this amending Scheme the following words and expressions shall have the meanings hereby assigned to them unless there is something inconsistent in the subject matter or context repugnant to such construction:

“the existing Scheme” means the C.I.E. Superannuation Scheme 1951 set out in the Schedule to the Córas Iompair Éireann Superannuation Scheme 1951 (Confirmation) Order 1951 ( S.I. No. 353 of 1951 ), and subsequently amended by the amending Superannuation Schemes confirmed by Statutory Instruments numbered 221 of 1963, 80 of 1971, 254 of 1974, 47 of 1977, 126 of 1981, 245 of 1982, 345 of 1982, 287 of 1985, 339 of 1986, 58 of 1987, 29 of 1989, 212 of 1989, 234 of 1991, 12 of 1992, 13 of 1992, 421 of 1992, 323 of 2000, 122 of 2002, 390 of 2003, 11 of 2004 and 261 of 2004;

“the operative date” means in respect of Article 4 the 17 January 2006 and in respect of Article 5 means the 1 June 2002.

2.       In this amending scheme, unless otherwise expressly stated, the words and expressions used shall have the meanings assigned to them by the existing Scheme.

3.       Amendment of the Existing Scheme

The existing Scheme shall be amended with effect on and from the operative date so as to conform to the provisions hereinafter contained and every provision of the existing Scheme, which is inconsistent with the provisions hereinafter contained, shall cease to have effect.

4.       The reference to “the 17^th day of January 2006” in paragraph (a) of Clause (9) of Rule 21 (inserted by S.I. No. 122 of 2002 ) shall be deleted and a reference to “the 17^th day of January 2010” shall be substituted.

5.       Rule 24 shall be deleted and the following Rule shall be substituted therefore with effect from the operative date:

“Rule 24

(1)      Any member of this Scheme who leaves the service of the Board after 1 June 2002 for any reason other than due to his/her death in service or unless his/her service with the Board is to be reckoned as pensionable service in the civil service or with an approved organisation under Section 4 of the Superannuation and Pensions Act 1963 or the Local Government Superannuation Code, after having completed two years Qualifying Service after 1 January 1991 without being entitled to a pension under any other Rule of or Article governing this Scheme shall be entitled to a Vested Benefit equal to the fraction which has accrued at the date s/he ceases to be employed of the pension and capital sum to which s/he would be entitled upon retirement at the age of 60, the accrued fraction to be calculated in accordance with the Second Schedule to the Pensions Act upon a basis approved by the actuary and subject to the requirements of section 35A of the Pensions Act.

(2)      (a)      Subject to application by the former member, a Vested Benefit shall come into payment on the former member's 60^th birthday unless it has previously been cancelled under Rule 37(2).

(b)      So much of the Vested Pension as has not been converted into a joint annuity under Rule 21B shall, if the former member dies within five years from the date upon which s/he reached the age of 60, continue to be paid until the expiration of five years from the date s/he attained that age in like manner and subject to the like provisions in all respects as are stipulated with regard to an unconverted annuity under Clause (6) of Rule 21, save that, for the purpose of this Clause, the former member's spouse shall be deemed to be the spouse to whom s/he was married before s/he left the service of the Board.

(3)      Wherever there is a period of at least one year between:

(a)      the later of the date a member leaves the service of the Board, and

(b)      the earlier of that member's 60^th birthday and the date of his/her death

then a Vested Benefit to which the member becomes entitled under sub-Article (1) of this Rule shall be increased at the end of each Revaluation Year by the amount of the Revaluation Percentage.

No revaluation shall be made under this sub-Article after the earlier of:

(i)      the date when payment of the Vested Pension begins, or

(ii)      the date of the member's death.

Reference in this Article to the amount of a Vested Benefit at any date after the member's date of leaving service is a reference to the Vested Benefit as increased to that date unless expressly stated otherwise.

(4)      At any time before payment of a Vested Benefit begins, the member entitled thereto may, subject to the requirements of the Pensions Act, request that a transfer payment be made out of the Fund to:

(A)       the fund of any other retirement benefits scheme which is treated as an exempt approved scheme for the purposes of Chapter 1 of Part 30 of the Taxes Consolidation Act 1997 , or

(B)       to a life office for application under a suitable insurance policy approved for the purposes of Chapter 1 of Part 30 of the Taxes Consolidation Act 1997 (a “retirement arrangement”), or

(C)       a personal retirement savings account within the meaning of section 91 of the Pensions Act, subject to the section 772 (3D) of the Taxes Consolidation Act 1997 and the requirements of the Pensions Act, or

(D)       to the trustees, custodians, managers or administrators of any arrangement for the provision of retirement benefits established outside the Republic of Ireland, in accordance with section 34(3)(e) of the Pensions Act, or

(E)       any other arrangement for the provision of retirement benefits prescribed under the Pensions Act and approved by the Revenue Commissioners for the purposes of the Taxes Consolidation Act 1997 ,

or the Trustees may, subject to the requirements of the Pensions Act, determine to effect such a transfer. As soon as practicable after the request or determination, an amount which the Trustees on the advice of the Actuary determine to be equivalent to the benefit shall be transferred to that retirement arrangement, and the trustees or life office operating that retirement arrangement shall be given all information needed to administer the amount transferred, and the benefits thereby secured, in accordance with the requirements of the Pensions Act and of the Revenue Commissioners under Chapter 1 of Part 30 of the Taxes Consolidation Act 1997 . Following the transfer the member concerned shall have no further entitlement under this Scheme.

(5)      On the death of a former member entitled to a Vested Benefit before payment begins and before any transfer payment has been made under paragraph (4) of this Article there shall be paid to his/her personal representative out of the Fund upon his/her application such amount as the Trustees on the advice of the Actuary determine to be equal to the date of death to the value of the benefit granted to the former member.

(6)      Any member of this Scheme who leaves the service of the Board after 1 June 2002 before having completed two years Qualifying Service since 1 January 1991 and without being entitled to a pension under any other Rule or whose service is not to be reckoned as pensionable service in the Civil Service or with an approved organisation under Section 4 of the Superannuation and Pensions Act 1963 or the Local Government Superannuation Code shall be entitled to a refund of his/her contributions including any contributions paid by him/her under Clause (8) or (9) of Rule 29A.

(7)      (a)      If a member to whom this Rule applies leaves the service of the Board by reason of infirmity there shall be included in any refund of his/her contributions compound interest thereon at the rate of two and one half per cent per annum.

(b)      Contributions paid by a member under the Spouses' and Children's Scheme shall not be taken into account for the purposes of paragraph (a) of this Clause.

(c)      Except as expressly provided no interest shall be payable on any contributions refunded to a member under this Rule and all refunds shall be subject to the deduction of income tax thereon at the appropriate rate.

(d)      For the purpose of this Rule any deductions made before the commencement of this Scheme from the salary of a person then in the employment of the Board in anticipation of the Scheme shall be deemed to be contributions by such person to the Fund.

(8)      Subject always to the requirements of the Pensions Act, if the Board notifies the Trustees that any debt is due to the Board from the member, the Trustees shall reduce any entitlements under this article by an amount which the Actuary advises them to be equivalent to the amount as notified to them of the debt. The amount of the reduction shall be paid by the Trustees of the Board, whose receipt shall discharge the Trustees for it, and the benefits, when they come into payment, shall be paid only in the reduced amount.”

Explanatory Note

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

The purpose of this Order is to extend voluntary severance terms applicable to members of the CIE Superannuation Scheme 1951, to 17 January 2010 and to provide for preserved benefits for members who leave service with at least two years Qualifying Service since 1 January 1991.