Paul McMahon

About Paul McMahon

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Agreements

Commercial Agency Agreement An exclusive agency agreement involves the appointment by the principal of the agent for a period, for the sale of the principal’s products in a specific territory. A non-exclusive agency agreement does not provide exclusive rights for the agent within the territory concerned. Targets and Term There may be provisions for a minimum target number of sales which must be achieved by the agent. They may be set out in a schedule showing the targets to be achieved […]

Implied Terms I

Common Law Position and Reform The basic principle at common law was that of “buyer beware”. Goods were taken in their actual state and condition, subject to the express or implied terms of the contract Over time , the common law implied in terms to a contract, compatible with the circumstances and intentions of the parties. The Sale of Goods Act 1893 codified the law and provided for stautorily implied terms. However, they might be excluded by the terms of […]

Trustees

Appointment of Pension Trustees The basic Trustee Act mechanics for the appointment and removal of a trustee apply to the appointment of pension scheme trustees. The pension deed will usually provide for the power of appointment so that statutory default provisions will not generally be required to be used. There is a statutory power vested in the Pensions Board/Authority to order the appointment of a trustee or a new trustee in substitution or an existing trustee, and vest the scheme […]

Power & Duties

Pension Trustees The law of trusts as modified by statute and by the terms of the pension deed applies to pension trustees. The scheme members are the beneficiaries of a trust. Their benefits are defined by the trust deed and rules. The duties of trustees are set out in the pension trust deed or other instrument. Common law, equitable and statutory principles and provisions supplement or modify those rules. The general common law and equitable duties of a trustee are […]

Investment Methods

Investment Options Most pension schemes with multiple members invest through investment vehicles, such as an insurance company or other unit-linked funds. The entire pension assets may be placed with an insurance company which provides all services in a single package. In this case, the immediate investment may be made in the insurer’s managed funds. There may be several layers of funds and sub-funds. The investments may be made in funds which are themselves managed by other providers. Larger schemes, typically […]

Disclosure

Information Overview I Under employment legislation, pension scheme details must be given to employees within 30 days of starting a job. When joining the scheme, members receive a booklet summarising its terms. This information is provided to members, prospective members, spouses of members, potential beneficiaries, and authorized union representatives. Employers must provide certain information to scheme members to meet Revenue requirements, often through an announcement letter. Information Overview II Beneficiaries have the right to access trust documents and information […]

Investment Duties

Investment of Pension Assets The pension trustees must invest the pension contributions in accordance with the terms of the trust. Pension trust rules usually provide for the widest possible powers of investment. The Pension Act confirms and supplements the duties of the trustees to provide for the proper investment of the resources of the scheme in accordance with its rules. The trustee’s duty to invest is fundamental. The purpose of the pension trust is to invest in order to accumulate […]

Establishment

Establishment An occupational pension scheme is usually established by a trust deed. A trust is a mechanism to separate nominal ownership of assets and the beneficial / economic entitlement to them. Under a trust, assets are held by a trustee for the benefit of beneficiaries on certain terms and conditions. In order to qualify as an exempt approved scheme, it must be established as an irrevocable trust. The use of the institution of the trust has important consequences. The trustees […]

Benefits

Permitted Benefits Benefits limits apply. The maximum retirement benefit may not exceed one sixtieth of the final remuneration for each year of service, up to 40 years under the mandatory approval provisions. Final remuneration is the average remuneration of the last three years’ service. Under the discretionary basis, the maximum retirement fund (funding 2/3 final salary) may be available for individuals with much less than 40 years’ service. They allow for the accumulation of full benefits within 10 and 20 […]

Revenue Requirements

Requirements Overview The rules of an coccupational pension scheme must comply with Revenue requirements before they can qualify for tax exempt status for contributions and investments. Revenue requires the establishment of a trust. The trust must be irrevocable. Its principal purpose must be the provision of certain categories of long service and other benefits, as provided for under tax legislation. The scheme may be based in part on employer and employee contributions, employer contributions only or largely on employee contributions […]