S.I. No. 187 of 2005

SOCIAL WELFARE AND PENSIONS ACT 2005 (SECTIONS 38 & 39) (COMMENCEMENT) ORDER, 2005

S.I. No. 187 of 2005

SOCIAL WELFARE AND PENSIONS ACT 2005 (SECTIONS 38 and 39) (COMMENCEMENT) ORDER, 2005

The Minister for Social and Family Affairs, in exercise of the powers conferred on him by section 1(4) of the Social Welfare and Pensions Act 2005 (No. 4 of 2005), hereby orders as follows:

Citation.

1. This Order may be cited as the Social Welfare and Pensions Act 2005 (Sections 38 and 39) (Commencement) Order, 2005.

Commencement.

2. The 11^th day of April 2005 is appointed as the day on which sections 38 and 39 of the Social Welfare and Pensions Act 2005 (No. 4 of 2005) come into operation.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation).

This Order provides for the commencement of sections 38 and 39 of the Social Welfare and Pensions Act 2005 with effect from 11^th April 2005.

Section 38 extends, from 15 to 30 days, the period from the initiation of a Personal Retirement Savings Account (PRSA) contract to the date on which it becomes enforceable. This is in line with the waiting period imposed on foot of Directive 2002/65/EC in relation to distance marketing of consumer financial services.

In cases of transfers from an Occupational Pension Scheme to a PRSA, members must be provided with a certificate comparing potential benefits from the occupational pension scheme to those from the PRSA, other than in cases where the transfer value is less than €4,000. Section 39 increases this limit from €4,000 to €10,000.