Terence Flanagan
Question:106. Deputy Terence Flanagan asked the Minister for Finance the position regarding the pensions levy (details supplied); and if he will make a statement on the matter. [57982/12]
View answerWednesday, 16 January 2013
Questions (106)
Written answers
The statement referred to in the details supplied by the Deputy relates to the study undertaken by the Department of Social Protection, the Central Bank and the Pensions Board into the level of charges in the pensions industry. The report on this study was published by my colleague, Ms Joan Burton TD, the Minister for Social Protection in late October last. On its publication, Minister Burton highlighted the technical and complex nature of the report. She has given interested bodies and individuals a period of time to consider the report and its recommendations and to respond to her by the end of this month. She will then propose to Government on further policy or regulatory action necessary.
On the matter of the pension fund levy, I have held the view since the introduction of the levy that the companies who manage and administer the assets of the pension funds and schemes should generally be in a position to absorb the impact of the levy by reducing the charges and fees which they apply. I have pursued this issue with the representative bodies of these companies but the response has not been positive. I have been told that it would be a matter for individual companies to decide on the question of absorbing the cost of the levy into their existing fees and charges but that the scope for companies to do so is very limited. There have been calls to force the companies through legislation to absorb the levy but I do not consider that this approach, which would ignore the circumstances from case to case, would be appropriate.
As regards the companies specifically mentioned in the details supplied, the relationship between the State and those companies is that the Boards and management teams retain responsibility for determining strategy and commercial policies and conducting day-to-day operations. I will not intervene in the operational management decisions of the companies concerned.
Finally, I confirmed in my Budget 2013 speech that the pension fund levy will not be renewed after 2014 the final year of its four year duration.