Ms Teresa Kelly Oroz:

As for international comparisons on the gender side, the two main issues that affect the pensions gender gap relate to the salary gap, so anything that can be done in that regard would be good, and the periods of unpaid leave. As for what has worked well internationally, the UK gives a credit into pension schemes when workers are on unpaid leave, which is not done here for occupational schemes. Moreover, nothing has been said about what will happen here in that regard with auto-enrolment.

Another mechanism for schemes in the UK allows up to a certain percentage to be invested, in a tax-efficient manner, by a partner. If someone is on periods of unpaid leave but his or her partner is still in employment, and if the person has capacity to invest additional sums, his or her partner can invest a certain sum, in a tax-efficient manner, into that person's pension scheme.

The third issue relates to maternity leave and, in particular, unpaid maternity leave. The ESRI published a report on maternity leave in Ireland in 2022. While the period of leave was deemed to be generous, the level at which maternity leave is paid by the State was found to be low, and in the scenario where a person’s pension is not topped up on maternity leave, the gap increases. This is where the flexibility regarding the contribution model becomes even more pertinent because it would mean there would need to be some capability, given the gap will be wider, to be able to make additional contributions.

The other big issue for auto-enrolment and occupational schemes relates to the education of young women in respect of the consequences of taking periods of unpaid leave and how, if they can afford it, they should start with a higher contribution. Personally, when I went on maternity leave, I worked out how much income I would lose and how I would cover those costs, and it did not dawn on me that I should look at the impact it was going to have on my pension scheme. It was only years later, when I started working in pensions, that I realised I had a gap and needed to increase my contributions. Advice and information has to be critical in this regard in order that people will be aware of the consequences of taking periods of unpaid leave.