Legislation facilitating the introduction of sovereign annuities was passed by the Oireachtas in 2011 (The Social Welfare and Pensions Act 2011).
A sovereign annuity is an annuity contract issued by insurance companies where the annual income payment is linked directly to payments under bonds issued by Ireland or any other EU Member State (known as reference bonds). Sovereign annuities can only be purchased by the trustees of occupational pension schemes (both defined benefit and defined contribution schemes). FAQs for trustees on sovereign annuities are available here under ‘Related Documents’.
Insurance companies interested in offering such products must have them certified by the Board under Section 53B of the Pensions Act, 1990.
FAQs for insurers on sovereign annuities and the application form for insurance companies to have their annuity products certified are available here under ‘Related Documents’.