Dáil Éireann Debate, Thursday - 30 June 2016
53. Deputy Clare Daly asked the Minister for Social Protection the steps he will take to reform and improve pension governance, given several high profile pension scandals, including the abrupt winding up of the Central Remedial Clinic plan. [18698/16]
View answerThe issue of reform in the pension industry and improvements to pension governance is certainly a priority of my Department and will remain so going forward.
The Pensions Authority, under the Pensions Act 1990, is the regulator for occupational pension schemes in Ireland. The Authority provides a wide range of information and guidance to help and support trustees to comply with their regulatory obligations as set out under legislation. The Authority, in consultation with my Department, is continually assessing governance issues and making improvements in order to protect the members of pension schemes.
For example, the Authority has introduced trustee training obligations where trustees must receive training in governance matters to improve the quality of trusteeship. It further introduced a Pensions Data Register where since 2011 some one million data submissions have been processed through the system. The Authority has published a comprehensive series of model documents for trustees and administrators.
The Authority has outlined plans for improved pension scheme governance in their Statement of Strategy 2016-2020 where it intends to further target areas such as governance and obligations of stakeholders by providing codes of conduct and models of best practice.
On the wider EU level Ireland has implemented the first EU Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision (IORPS). The IORPS Directive established the basic EU requirements for occupational pension funds and their supervision, including rules obliging schemes to invest their assets prudently. Ireland has also been centrally involved in discussions on the revision of the IORPS Directive - IORPS II. The IORPS II Directive is anticipated to be approved by member states shortly and Ireland will have a two year timescale to transpose the Directive into Irish law. It is anticipated that the proposed revisions, which Ireland supports, will provide for, and improve, minimum standards in the areas of scheme governance requirements, e.g., new structures for risk management and evaluation, internal audit, internal control and remuneration. It may also include new requirements regarding ‘fit and proper’ management standards in schemes and the safekeeping of assets. It is anticipated that final provisions will result in improvements in the areas of transparency, trustee competencies and scheme governance.
Specific issues in relation to the Central Remedial Clinic Plan may be more appropriate for my colleague, the Minister for Health, given that the Central Remedial Clinic (CRC) is funded by the Health Service Executive under Section 38 of the Health Act 2004.
I hope this clarifies the matter for the Deputy.
