Terence Flanagan (Dublin North East, Renua Ireland)
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39. To ask the Tánaiste and Minister for Social Protection the measures she is taking to reduce pension costs that are charged on members of pension schemes; and if she will make a statement on the matter. [33021/15]

Joan Burton (Dublin West, Labour)
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The Report on Pension Charges, undertaken by my Department, working with the Central Bank and the Pensions Authority, was completed and published in October 2012 and 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, as recommended in the report, the Central Bank has undertaken a number of themed reviews aimed at ensuring implementation of the requirements of the Consumer Protection Code. This includes a review of annual pension statements to confirm that information on charges is being 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.

The report also recommended that specific actions should be taken to improve trustees’ knowledge and awareness of pension charges. In this regard, the Pension’s Authority has updated its trustee training material and information on its website on pension charges for scheme trustees and consumers. The Authority has also recently released a new edition of the Trustee Handbook which includes dedicated information of fees and charges and trustee obligations in this regard.

In parallel, my Department is involved in complementary EU negotiations on a review of the IORPs (Institutions for Occupational Retirement Provision) Directive which lays down basic requirements for occupational pensions. It is anticipated that final provisions will result in improved consistency of information to scheme members in pension benefit statements including transparency of charges.

Under the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 the Pensions Board was restructured into the Pensions Authority and the Pensions Council. 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.