Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I move amendment No. 18:

In page 12, between lines 18 and 19, to insert the following:“(1AD) The annual management charge on a pension scheme shall not exceed 1 per cent of the pension fund.”,”.

I tabled this amendment to highlight again the charges, as revealed by the Department's own study last year, and how hard they bear on small schemes in particular. The Department's own study showed that someone who saved €250 per month from the age of 35 could end up with a fund of €200,000 after 30 years. That would leave them with an annual pension of €10,000 per year. However, when one takes out the charges, the sum of €200,000 is reduced by approximately €62,000 and the pension is reduced from €10,000 to €6,900. No one could argue that these intermediaries, managers, trustees or whatever are underpaid. Having read the report to its fullest extent, I realise the complexity of the situation and that putting in a standard 1% may be somewhat simplistic, in view of how such items are priced and so on. However, I reiterate that I tabled the amendment to draw attention to, and to revitalise the Minister's interest in, the issue. At the time the aforementioned report was discussed by members, the Minister indicated there would be follow-up in respect of dealing with those charges and perhaps she might outline what is happening in that regard.