With the IORP II compliance deadline of 22 April 2026 fast approaching, many Irish company directors are facing an important decision about their Executive Pension Plan (EPP). What is less widely recognised is that this regulatory change creates a genuine opportunity to reduce pension costs — often materially — if handled correctly.
Under the IORP II Directive, all Executive Pensions established on or before 22 April 2021 must either become fully compliant or be wound up by April 2026. For most standalone Executive Pension Plans, compliance brings significant new governance, trustee, and reporting costs.
For that reason, winding up the existing Executive Pension Plan is usually the most cost-effective outcome. The key question then becomes where the pension fund should be transferred — and how future contributions should be structured — to minimise costs while retaining flexibility.
Why April 2026 is a Hard Deadline
If a standalone Executive Pension remains in place beyond April 2026, it must meet full IORP II standards. These include enhanced trustee oversight, formal risk management frameworks, and ongoing compliance reporting — all of which increase annual running costs.
Crucially, legislation allows Executive Pension Plans to be wound up and transferred without transfer penalties. This means directors can move their pension fund to a more efficient structure without incurring exit costs or losing accrued benefits.
Cost-Effective Alternatives to Executive Pension Plans
Most Executive Pension holders are now transitioning to one — or a combination — of the following arrangements:
Master Trusts
Master Trusts spread the cost of IORP II compliance across thousands of members, delivering economies of scale. Trusteeship, governance, and administration are managed centrally, removing both cost and responsibility from the employer or director.
For many, this is the default option — but not always the cheapest.
Company-Funded PRSAs
For single-member or director-led arrangements, a company-funded PRSA can often be more flexible and cost-effective than a Master Trust. PRSAs typically involve simpler administration, competitive charging structures, and broad investment choice.
In many cases, a PRSA is better aligned with how directors actually fund and manage their pensions.
Personal Retirement Bonds (Buy Out Bonds)
Personal Retirement Bonds (PRBs) provide a fixed-cost structure that sits outside IORP II governance. For directors with a large existing pension fund, transferring the accumulated pot to a PRB can significantly reduce ongoing charges.
A PRB is often combined with a PRSA or Master Trust for future contributions, producing a highly cost-efficient overall solution.
Cost-Saving Strategies Many Directors Miss
The structure you choose matters — but so does who provides it.
Many pension providers simply move Executive Pension members internally to their own Master Trust, keeping the same allocation rate, annual management charge, and fund range. While this satisfies IORP II, it may miss a valuable opportunity to reduce costs.
Before defaulting into an internal transfer, directors should consider whether they can:
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Lower annual management charges
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Improve net investment performance
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Reduce complexity and ongoing advice costs
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Upgrade the level of ongoing service and transparency
Independent advice at this stage can make a substantial long-term difference.
Practical Cost-Saving Examples
In practice, we commonly see cost savings arise from:
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Transferring to an alternative Master Trust with lower charges
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Replacing a Master Trust with a PRSA where it is more suitable
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Winding up an Executive Pension, transferring the existing fund to a PRB, and using a PRSA or Master Trust for future contributions
For directors with larger pension pots, this combined approach can significantly reduce costs over time while retaining flexibility.
Don’t Let Default Decisions Drive Your Pension Costs
As the April 2026 deadline approaches, many Executive Pension holders will be moved automatically into their provider’s Master Trust without a full review of alternatives.
We would strongly encourage all company directors to review their Executive Pension options now, before default decisions are made on their behalf.
A proactive review during this transition window can materially reduce pension costs and improve long-term outcomes.
How One Quote Financial Brokers Can Help
At One Quote Financial Brokers, we specialise in helping company directors navigate the IORP II transition with a focus on:
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Cost transparency
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Structure suitability
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Long-term value rather than short-term compliance
We review your existing Executive Pension, assess all viable transfer options, and design a solution that minimises costs while protecting your retirement objectives.
If you are approaching the IORP II deadline, now is the time to act.
Free No Obligation Consultation
Prior to contact, please note the following information will be sought:
1. Your name, age, and contact number.
2. Proof of existing retirement benefits.
3. Current value of existing retirement benefits.
Contact: Ken O’Gorman – Director – QFA, SIA, MCIBS – Pension Specialist – One Quote Financial Brokers on: 01 845 0049 or email: info@onequote.ie
Or enquire online and let us know how best to get back to you.
