The Pensions Act is hereby amended by the substitution for section 48 of the following section:

"48. Priorities on winding up of relevant scheme.

Notwithstanding anything contained in the rules of a relevant scheme that is being wound up -

(a) the resources of the scheme being wound up shall be applied on the winding up to secure -

(i) firstly, the continued payment of the benefits specified in paragraph 1 of the Third Schedule to or in respect of those persons who, at the date of the winding up, were in receipt of such benefits, and

(ii) secondly, the benefits specified in paragraphs 2 and 3 of the Third Schedule to or in respect of those members of the scheme who, at the date of the winding up, were within the categories referred to in those paragraphs,

before discharging any other liabilities of the scheme:

Provided that the expenses, fees and costs relating to and associated with the winding up of the scheme shall be payable in priority to any other claims on the scheme, and

(b) the trustees may apply, without the consent of the member concerned, all or part of the resources of the scheme -

(i) in the making of a payment to another scheme, or

(ii) in the making of one or more payments falling to be made under policies or contracts of assurance that are effected on behalf of the member with one or more undertakings (within the meaning of the Insurance Act, 1989) and that are approved by the Revenue Commissioners under Chapter II of Part I of the Finance Act, 1972,