Helping you meet your IORP II obligations

Mercer has the expertise, systems and experience to support pension scheme trustees and sponsors in meeting their IORP II obligations

What is IORP II?

The Minister for Social Protection signed legislation on 22nd April 2021 which officially transposed the Second European Pensions Directive (known as IORP II) into national law.

The legislation brings into force in Ireland the wide-ranging legal requirements and governance standards originally introduced in the IORP II Directive in 2017. Its arrival heralds the biggest change in the occupational pension’s regulatory landscape in this country for a generation.

The regulations closely follow the original European Directive, and Mercer have already been helping trustees and employers to work towards these requirements. In anticipation of the Directive, we have developed governance frameworks that trustees can tailor to their schemes and a pension risk management service to act as an outsourced risk management function for schemes.

What does the IORP II directive cover?

  • Enhanced pension scheme governance and internal controls;
  • Strengthening schemes’ risk management systems, including a requirement for a formal risk management function;
  • Requirement for schemes’ to carry out an internal audit and have an internal audit function;
  • A much broader scope of member communications requirements, including provision of annual benefit statements to deferred members;
  • New fitness and probity standards for trustees and other persons involved in running schemes;
  • Extended powers for the Pensions Authority with respect to applying forward-looking, risk-based principles to the supervision of pension schemes and monitoring of compliance;
  • Updated rules relating to the operation of cross border schemes and transfers between schemes in Ireland and the EU.

How can we help you with IORP II?

  • Mercer’s expert consultants, assisted by our designated IORP II and risk management team, are subject matter experts in their field. We are currently helping hundreds of schemes take the necessary and proportionate actions they need to enable a seamless and cost-effective transition to the new regulatory regime.
  • Our full range of governance and internal controls supports and tools are available and can be adapted to meet requirements, including monitoring ongoing compliance.
  • Our pension scheme risk management service draws on extensive expertise and can provide a range of solutions to fit your needs and budget as you evolve and enhance your risk management system.
  • Our investment specialists can help you navigate through the   expanded investment rules, including incorporation of environmental, social and governance considerations and strategies.
  •  Mercer also provides a designated scheme secretarial service to support you with all areas of scheme operations, governance and other organisational aspects.
  • We have a deep heritage in risk management and a long history of helping trustees to manage the risks inherent in their pension schemes through our actuarial and investment advice, as well as liability and investment risk management projects.
Assisted by our designated IORP II and risk management teams, Mercer are subject matter experts and we are already helping hundreds of schemes meet the new IORP II requirements
James Campbell

Head of Strategy & Policy, Mercer Ireland

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