Dáil Éireann Debate, Thursday - 5 February 2015
45. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection the measures she is taking to reduce the pension costs charged to members of pension schemes; and if she will make a statement on the matter. [4916/15]
View answerThe 2012 Report on Pension Charges undertaken by my Department, working with the Central Bank and the Pensions Authority, was the first comprehensive Government report on this subject. Since publication, a range of measures have been taken to deliver on the report’s recommendations and work is ongoing in this regard. For example, in line with the recommendation that the implementation of the Consumer Protection Code should be monitored, the Central Bank has undertaken a number of themed reviews aimed at ensuring this is the case. This includes a recently published review of annual pension statements which found the vast majority of firms were in compliance with the code. Where the Bank identified a small number of firms where the format of annual statements were not as required, those concerned were required to submit implementation timelines for full compliance.
In parallel, my Department is involved in complementary EU negotiations on a review of the IORPs (Institutions for Occupational Retirement Provision) Directive which lays down basic requirements for occupational pensions. It is anticipated that final provisions will result in improvements in the areas of transparency, trustee competencies and scheme governance and which will promote competitiveness in charging structures.
Under the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 the Pensions Board was restructured into the Pensions Authority and the Pensions Council. The Pensions Council was established to provide advice on pensions and also to give consumers a greater input into pension policy. The Pensions Council will ensure that the system has a far stronger consumer focus. I have previously highlighted that there a number of specific areas which I want the Council to focus on which includes pension charges. Progress on the issue of charges will also be supported by the restructuring of the Pensions Authority to strengthen governance and regulation of schemes.
