Pensions Board prosecutes firm over funding certificate
IRELAND - The Pensions Board has successfully prosecuted an engineering company for failing to submit an actuarial funding certificate for its pension fund within the required time frame.
The Cork-based firm, B&C Engineering Company, had nine months from its effective date in which to send the certificate to the Board.
However following the failure to submit the document - which sets out the funding level of the scheme in relation to the minimum standard - the Pensions Board brought a legal action against the firm, which acts as trustees to the B&C Engineering Company Ltd Retirement and Death Benefit Plan, for non-compliance with the 1990 Pension Act.
The case, heard by Judge David Riordan in Cork District Court yesterday, resulted in a conviction against the company and a fine of €2,500 to be paid within 90 days.
Brendan Kelly, chief executive of the Pensions Board, pointed out actuarial funding certificates are important because they provide “vital disclosure of how well the pension scheme meets the funding standard”.
“Failure to submit an actuarial funding certificate is an offence and the Board has a responsibility to enforce this requirement. We regard non-compliance as a serious matter,” he added.
In May the Pensions Board confirmed a further extension for defined benefit (DB) schemes to file funding proposals following the introduction of measures to help ease the burden on pension funds, such as changes to wind-up priorities and the option of altering accrued benefits.
However the Board warned that there would be no extension to the deadline for the submission of actuarial funding certificates and highlighted trustees would be liable for prosecution if the deadline was not met. (See earlier IPE article: Pensions Board grants DB schemes further reprieve)
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