Terence Flanagan (Dublin North East, Independent)
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44. To ask the Minister for Social Protection the measures she is taking to reduce pension costs being charged on members of pension schemes; and if she will make a statement on the matter. [24626/15]

Joan Burton (Dublin West, Labour)
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The 2012 Report on Pension Charges undertaken by my Department, working with the Central Bank and the Pensions Authority, was the first comprehensive Government report on this subject. The report culminated in recommendations which involve measures to introduce clarity and consistency across the various pension products, increase consumer understanding and provide a better result for the consumer.

Since publication, a range of measures have been taken to deliver on the report’s recommendations and work is ongoing in this regard. For example, in line with the recommendation that the implementation of the Consumer Protection Code should be monitored, the Central Bank has undertaken a number of themed reviews aimed at ensuring this is the case. This includes a review of new requirements for annual pension statements introduced in 2012 which requires that information on charges be provided in a way that seeks to inform the customer. The review found that the vast majority of firms were in compliance with the code. Where the Bank identified a small number of firms where the format of annual statements was not as required, those concerned were required to submit implementation timelines for full compliance.

In terms of support to trustees of occupational pension schemes, the Pension’s Authority is in the process of enhancing its e-learning website for trustee training which will include material on pension charges. It is also updating the Trustee Handbook and expects to publish the new handbook, which will contain a chapter on pension charges, in the near future.

The pension charges report refers to the broader pensions policy debate on the introduction of a universal pension system. It indicates the introduction of such a scheme may be the most effective way to introduce change in this area. International experience has shown that this type of scheme is extremely successful in providing a simplified and lower cost charging structure and a consistent application across employers. This type of arrangement could assist in resolving the difficulties inherent in the current structure of a proliferation of small schemes paying considerably higher charges than larger schemes, ultimately eroding the value of the pension received by the member. In this regard and in line with the Statement of Government Priorities, the Government recently decided to proceed with work to develop a roadmap for the introduction of a new, universal, supplementary workplace retirement saving scheme. The Universal Retirement Savings Group (URSG) has been established to consider the constituent factors involved in constructing an efficient and effective universal retirement savings system and to bring forward a recommendation in the form of a roadmap and estimated timeline for introduction.

Finally, the role of the new Pensions Council is to provide advice on pensions and to give a much stronger prominence to consumer concerns. I have previously highlighted that there a number of specific matters which I want the Council to focus on and this includes the area of pension charges which, following its recent establishment, the Council has now begun to consider.