Dáil Éireann Debate, Thursday - 29 March 2012
135 Deputy Michael McGrath asked the Minister for Social Protection her views on reports that up to €1 billion in private sector pension assets are effectively unclaimed; her plans to simplify the pensions system to ensure that beneficiaries receive their full entitlement; and if she will make a statement on the matter. [17477/12]
View answerTraditional employment practices where an employee works with the same organisation for their entire career through to retirement are no longer the norm and employees are more likely to accrue pension rights through a number of different employments during their working life.
The introduction of the personal retirement savings account (PRSA) in the Pensions Act 2002 was designed to enable people, especially those with no pension provision, to save for retirement in a long-term personal account that supports flexible employment. Employers who do not provide an occupational pension scheme for their employees are obliged to provide access to at least one standard PRSA.
Pension schemes are obliged to make every effort to trace all members of a scheme when their entitlements become due. My Department supports this by providing a mail hosting service for pension schemes that are unable to locate scheme members. This service operates by sending a letter to a person's last known address asking them to make contact with their pension company.
A group chaired by my Department and comprising of representatives from the Pensions Board and the Revenue Commissioners has considered ways of facilitating a more enhanced pension tracing facility and as a result my Department is working closely with the Revenue Commissioners to put in place an automated solution to capture the required data which will facilitate a person to trace his or her accrued pension rights in former employment.
There is no data available to support the claims that there are substantial unclaimed pension funds. However, the establishment of a dormant accounts type fund into which the accrued benefits of untraceable scheme members would be lodged will also be considered.
136 Deputy Michael McGrath asked the Minister for Social Protection if she will introduce a requirement for all pension holders to receive a single annual consolidated statement of their accrued benefits; and if she will make a statement on the matter. [17478/12]
View answerThe trustees of a defined benefit (DB) or a defined contribution (DC) scheme are required to issue an annual benefits statement to each member of the scheme.
The Pensions Act 1990 sets out the terms under which the trustees of occupational pension schemes must give information to schemes members and others about their personal entitlements. Information about the running of the scheme and about its financial situation must also be made available. Employers are also required to provide certain information.
The information in the annual benefits statement includes the amount of contributions paid to date including any pensions rights transferred to the scheme. The trustees are also required to issue a statement of reasonable projection for members of DC schemes and in respect of any DC element of a DB scheme. The statement specifies the level of benefit which could be reasonably be expected as a specified date or dates to be payable by the scheme and advises the member of the importance of making adequate financial provisions for retirement. The benefit statement also includes a statement as to whether the scheme takes account of the State pension or whether the State pension is payable in addition (subject to qualifying).
Holders of Personal Retirement Savings Accounts (PRSAs) also receive a statement of reasonable projection annually. In addition, a statement of account and an investment report is issued every six months.
I understand that these requirements do not apply to personal pension schemes under the remit of the Central Bank.
