Bill on pension investment passed

LEGISLATION enabling pension funds to invest more in the domestic economy — and gain value from doing so — was formally passed yesterday.

The introduction of the Sovereign Annuities Initiative was initially proposed by the Irish Association of Pension Funds and the Society of Actuaries in Ireland and has been winding its way through the Oireachtas in the past few weeks, formally being signed off by the Seanad yesterday.

The initiative allows for greater levels of investment by Irish pension funds in Irish Government bonds, for instance, and will result in the issuance of new sovereign annuity bonds, allowing for a fixed annual return for funds, to be issued by the National Treasury Management Agency (NTMA) in the new year.