Dáil Éireann Debate, Tuesday - 13 November 2012
112. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the steps she will take in response to the finding contained in her Department's report on pension charges that the private pensions industry is taking up to a third of the value of persons' retirement savings in charges. [49831/12]
Amharc ar fhreagraThe Report on Pension Charges 2012 was undertaken by my Department with support from the Central Bank and Pensions Board. The primary objective of the report was to gather information on the level of pension charges levied, to assess whether these charges are reasonable and transparent, to report on the findings and to make recommendations. The report highlights a wide range of issues in relation to pension charges and identifies a number of serious problems. It is fully recognised that the provision of pension schemes cannot be cost free. However, there are major challenges to be addressed in the two main areas of reasonableness and transparency of charges.
In recent years a number of initiatives have been progressed at Irish and EU level which focused on the area of disclosure and transparency of pension charges. These initiatives included the publication of the revised Consumer Protection Code by the Central Bank in 2012 and the recent consultation paper by the Pensions Board on pension simplification. At EU level, my department will be monitoring development across a range of proposals which are currently under consideration and will be progressed during 2013. The outcome of these developments will inform a review of relevant regulatory framework in Ireland.
The report is a fact finding report, comments from interested parties and stakeholders are being invited over a 3 month period (i.e. by the end of January 2013). These responses will be considered and a further policy and regulatory response, if necessary, will be brought to Government.
