Seán Sherlock (Cork East, Labour) | Oireachtas source

I move amendment No. 3:

In page 34, between lines 23 and 24, to insert the following: "(d) a review of the performance of occupational pension coverage from current employment,".

While unions strongly support the move to automatic enrolment, recognising that the current voluntary approach to pension savings has failed, they are concerned that automatic enrolment risks displacing existing workplace pensions. In other words, employers could now automatically enrol new hires, because it would be perceived to be cheaper, resulting in the phasing out of an existing occupational pension scheme over time. As I understand it, the Bill obliges the authority to prepare an annual report for publication that must include a review of the performance of the automatic enrolment provider schemes over the five preceding years, the ten preceding years and any other periods of such duration as may be determined by the board. The purpose of our amendment is to require the annual report to include a review of the performance of occupational pension coverage from current employment. The Bill makes provision for an annual report and statistical data related to the performance of the automatic enrolment retirement savings system to be produced and to be transparent and publicly available. We welcome that, obviously, but the purpose of our amendment is to extend the review to include a review of the performance of occupational pension coverage from current employment. Automatic enrolment is intended to operate alongside existing occupational pension schemes, not in place of them, where they meet minimum contribution standards. Having information on the performance of occupational pension coverage from current employment published alongside data relating to participation in the automatic enrolment retirement savings system will allow for the early detection of unintended consequences regarding the displacement and dilution of current good workplace pensions and for remedial action to be taken in real time. Data on occupational pension coverage are already collected and published by the CSO annually, as we know. The amendment simply seeks to improve transparency regarding the performance of the automatic enrolment retirement savings system.