IORP II

Overview

The IORP II Directive became law in April 2021 and set minimum standards for the management and supervision of pension schemes in order to protect the entitlements of members and beneficiaries. It was designed to provide greater stability for the occupational pension landscape.  

IORP II affects all occupational pension schemes, and responsibility for compliance lies with scheme trustees. That means increased governance and responsibilities for trustees.

Synergy Executive Pensions started on or before 22 April 2021 (policy number begins with EP1)

These schemes must comply with the regulations by 22 April 2026. To avoid the additional responsibilities and costs associated with being IORP II compliant, trustees can choose to wind up the existing scheme and transfer the member’s policy to a suitable alternative arrangement such as:  

• A Personal Retirement Savings Account (PRSA) 
• An occupational pension scheme which they're already a member of, including a Master Trust  
• A Buy Out Bond or, if the circumstances are right, the member can retire from the scheme and take their benefits.

PRSA

A PRSA is a flexible pension product that caters to a wide range of customer needs. It’s a long-term investment option offering a flexible, tax-efficient way to save for retirement. Your clients can choose where their money is invested, stop paying contributions at any time, and restart with a month’s notice.    

Changes to legislation over recent years made amendments to the PRSA, making it a compelling pension option for an even wider range of customers. The PRSA can now be used as a whole of life pension arrangement for your clients. This means they can save for retirement and then draw their retirement income, without the requirement to change products, simply by vesting the PRSA.

Visit the Synergy PRSA hub for more information.

Group schemes (scheme numbers beginning with 7 or L)

For information on options for trustees of group schemes, please visit standardlife.ie.

Standard Life property funds on executive pensions

IORP II legislation meant that from 22 April 2021, no more than 50% of total investments in an executive pension could be invested in unregulated markets like direct property.  

As a result, we closed the Standard Life Property Fund and the Standard Life Global Real Estate Fund to new investments through the Synergy Executive Pension and the Executive Pension Plus from 6 September 2021.  

These funds are still available on all other Synergy Products.

What this means for customers:

They can no longer make new investments into the Standard Life Property Fund or the Standard Life Global Real Estate Fund. This includes:  

• Single contributions, transfer payments, or new regular investments   
• Switching or redirecting regular premiums   
• Increasing premiums 

Regular contributions

Trustees will need to satisfy themselves that any regular contributions being invested must be more than 50% in regulated markets at all times. The Standard Life Property Fund, and the Standard Life Global Real Estate Fund are not considered to be a regulated market.  If investment in regulated markets falls below 50%, trustees will need to take steps to adjust it. 

If you have any queries on this fund closure to new investments, please speak to your Standard Life Business Manager.