Terence Flanagan (Dublin North East, Fine Gael)
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To ask the Minister for Social Protection if it is possible for her to legislate to ensure that pension charges are kept low for those in pension schemes (details supplied); and if she will make a statement on the matter. [48624/12]

Joan Burton (Dublin West, Labour)
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The Report on Pension Charges which I published last week was undertaken by my Department with support from the Central Bank and Pensions Board. 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 a number of serious problems. It is fully recognised that the provision of pension schemes cannot be cost free. However, there are major challenges to be addressed in the two main areas of reasonableness and transparency of charges.

The report is a fact finding report and comments from interested parties and stakeholders are being invited over a 3 month period (i.e. by the end of January 2013). These responses will be considered and a further policy and regulatory response, if considered necessary, will be brought to Government.

In recent years a number of initiatives have been progressed at Irish and EU level which focused on the area of disclosure and transparency of pension charges. These initiatives included the publication of the revised Consumer Protection Code by the Central Bank in 2012 and the recent consultation paper by the Pensions Board on pension simplification. At EU level, my Department will be monitoring development across a range of proposals which are currently under consideration and will be progressed during 2013. The outcome of these developments will inform the regulatory framework in Ireland.

On the broader pension policy front, the report clearly identifies the importance of economies of scale in driving down charges. At present the OECD is conducting a review of longer term pension policy and will comment on key policy issues such as the possible introduction of an auto-enrolment pension scheme for all employees which could have a major impact on reducing charges.