Financial Market Trends - How to Invest Your Pension

Proposed changes to Defined Benefit pension rules will offer both challenges and opportunities for scheme members

The Social Welfare and Pensions Bill 2017 was published yesterday. It contains a number of proposed amendments to the Pensions Act which directly impact on Defined Benefit (DB) schemes:

  • When a DB scheme is in deficit, trustees will have to submit a funding proposal to the Pensions Authority within six months of the date of the actuarial funding certificate.
  • Employers will be required to give twelve months’ notice to the Pensions Authority and trustees before ceasing contributions to a DB scheme.
  • The Pensions Authority will have the power to determine a contribution schedule where an employer will not engage with the trustees on agreeing a funding proposal.

With an increasing legislative burden for DB schemes, we expect to hear more and more about the winding-up of these schemes. This can be harrowing news for those involved and very often, members worry about their years in retirement and the subsequent effect on their standard of living.

However, a question that must be posed is: is this a benefit in disguise? Members of DB schemes can be quietly pleased when they learn of the capital value of their pension benefits with six and often seven figure sums being quoted and the control of these funds can transfer in to their hands.

If you would like Independent Advice on the options available to you on your DB scheme contact us on 01 2375500 or email

To view full details of the bill click here

The material is not intended to provide advice and is provided for general information purposes only.

The legislative information contained herein is based on Harvest Financial Services Limited’s understanding of current practice as at  May 2017  and may change in the future.