Parliamentary Question addressed to the Minister for Social Protection

The Deputy will be aware that the Report on Pension Charges was completed and published in October 2012.  This Report was undertaken by my Department, working with the Central Bank and the Pensions Board, and with support from PricewaterhouseCoopers. 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 that there are major challenges to be addressed in the two main areas of reasonableness and transparency of charges.  The report shows that small percentages can add up to big reductions in a pension fund over time.

The launch of the Report was followed by a three month consultation with stakeholders. There was a broad range of views expressed in the submissions received as well as a range of suggestions and proposals aimed at improving various aspects of the pension charging environment. Following the consultation period, it was agreed by Government in April 2013 that the recommendations contained in the report will be implemented, and this work is underway.

 

A Pension Charges Working Group is in place to initiate actions that follow up on the recommendations of the report.  This group comprises the Department of Social Protection, the Pensions Board and the Central Bank.  Each has a core role to play in delivering on the recommendations contained within the Report on Pension Charges and work has commenced in this regard.  

Additionally, progress on the issue of pension charges will be supported by recent actions to restructure the Pensions Board and strengthen governance and regulation of the country’s occupational pensions and give consumer representatives a greater input into pensions policy.  I have highlighted that the first task of the new Pensions Council will be to monitor the implementation of the recommendations in the Report on Pension Charges and advise if further actions are needed.  The range of possible actions in this area would then be considered and should it prove necessary, I will bring a further policy and regulatory response to Government.