Olwyn Enright (Laois-Offaly, Fine Gael)
Link to this: Individually | In context

Question 29: To ask the Minister for Social and Family Affairs the way he will improve the supervision of occupational pension schemes by the Pensions Board and by his Department; and if he will make a statement on the matter. [43275/06]

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 272: To ask the Minister for Social and Family Affairs the way he will improve the supervision of occupational pension schemes by the Pensions Board and by his Department; and if he will make a statement on the matter. [43569/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 29 and 272 together.

Under the Pensions Act, 1990, trustees have the main responsibility for the administration of funded occupational pension schemes and for compliance with the requirements that apply to these schemes. The Pensions Board has the main statutory responsibility for monitoring compliance with the Pensions Act and is also required under the Act to provide guidance for trustees on their duties and responsibilities in relation to scheme administration and to issue codes of practice on specific aspects of trustees' duties.

The provision made for these Pensions Board functions is a clear recognition of the central role which trustees have in ensuring that occupational pension schemes are properly administered, that scheme members' pension rights are fully safeguarded and that they and their dependants ultimately receive their pensions.

The Pensions Board, as part of its regulatory role, monitors trustees who must account to members for how their scheme is run by providing them with a wide range of personal and scheme information as required by the Pensions Acts 1990 to 2004.

The disclosure of information in a timely manner enables scheme members to monitor their benefits and the financial soundness of their pension schemes.

The Board regards information disclosure as a very important governance requirement for pension schemes and takes steps to enforce this obligation where necessary. In this regard trustees have been prosecuted for failing to comply with disclosure requirements.

There are also statutory provisions which place a legal requirement on a range of specified persons involved in the operation of occupational pension schemes to report suspected fraud or material misappropriation to the Board. There is also provision to make a voluntary report on any matter concerning the state and conduct of the scheme. Specified persons include auditors, actuaries, trustees, insurance intermediaries, investment advisers and any other person who has been involved in assisting the trustees of a scheme. The provisions also contain legal protection for the persons making such reports.

Obviously, it is necessary to keep the regulatory strategy under review to ensure that schemes are administered in accordance with the requirements of the Pensions Act and to an acceptably high standard. In this regard, the Pensions Board is at present carrying out a review of its operations to see how it might perform its role more effectively in the current pensions environment. Broadly, I understand that the Board plans to develop further its approach to the supervision of schemes and Personal Retirement Savings Accounts, in line with international best practise and EU requirements. I would support such an approach. The Board will shortly present its proposals in this regard to the Department and these will be considered in detail.