There are a great number of individuals who have remained on as members of their former employers’ pension schemes long after they have left their employments. And, the trustees of these pension schemes continue to bear the responsibilities of trustees for these “former employees” pension benefits.

In many cases the employer company acts as trustee, meaning that the individual directors of the company are in effect the trustees. This could mean that, if you are a recently appointed director, you may be acting as a trustee for the pensions of individuals who left your company’s employment long before you had anything to do with the company.

Why you should think twice about being a pension scheme trustee?

The following are some of the main duties and responsibilities of pension scheme trustees:

• Ensure that the scheme complies with nearly 500 pages of pension legislation.
• Implement and adhere to all the terms of the trust document.
• Ensure that the funds of the scheme are invested in an appropriate manner.
• Ensure that all membership and scheme records are maintained in a proper manner.
• Undergo trustee training every two years. (Where the company acts as trustee each director of the company is required to do this training.)
• Ensure the appropriate investment strategies are available and that members are presented with material to inform them of any choices they have to make.

You should also note that the Pensions board fines trustees who neglect their responsibilities.

There is another way!

Under pensions legislation there is a way to avoid the trustee responsibilities for former employees’ pensions. This is to transfer the monies accumulated in each individual employee’s investment account to a Buy-Out Bond or a Personal Retirement Savings Account (PRSA) – subject to certain rules and conditions. The former employee then becomes the owner of the pension funds in their own right.

The transfer process is quite a simplified one and does not cost you in any additional expense.

For further information on this process contact:

Liam Cashell or Eamonn Kielty of Kielty Cashell Financial.  They are experienced Independent Pension & Investment Brokers.  If you wish to contact them about this or indeed any other pension matter, please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or telephone 071 919 4000.