The trustee training deadline for pension scheme trustees appointed prior to 1 February 2010 passed on 31 January last. Trustees appointed since 1 February 2010 must receive training within six months of the date of their appointment. Trustees and sponsoring employers who fail to comply with this requirement are liable to fines and/or prosecution under the Pensions Act.

The Pensions Act imposes an obligation on employers that operate pension schemes to arrange for the scheme trustees to receive appropriate training before the applicable deadline and every two years thereafter. However, an employer is not required to arrange training for a pensioner trustee or a professional trustee, as defined in the Pensions Act. Where an employer fails to comply with his obligations in this regard, both the employer and the officers of the company (where the employer is a corporate body) can face prosecution and a fine of up to €25,000 and imprisonment for up to two years.  A trustee who fails to undertake trustee training as and when required by the Pensions Act is liable to an on-the-spot fine of €2,000. Fines imposed on employers, company officers or on trustees cannot be paid out of the resources of the scheme.

It is advisable for employers and trustees who have not yet complied with the trustee training requirements to take steps to do so immediately.

Contributed by Mary Greaney & Lorna Osborne.

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