Clare Daly (Dublin Fingal, Independent)
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107. To ask the Minister for Social Protection the implications for workplace pension funds here as a result of the passing of the revised IORP directive by the European Parliament; and if he will make a statement on the matter. [37905/16]

Leo Varadkar (Dublin West, Fine Gael)
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The first EU Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision (IORP I) established the basic EU requirements for occupational pension funds and their supervision, including rules obliging schemes to invest their assets prudently. It is anticipated that the revised IORP directive (IORP II) will be published in the Official Journal of the European Union by the end of 2016 or in early 2017.

Transposition will be required within two years from the date of publication and will entail significant change to Irish pension legislation. The Department, supported by the Pensions Authority, will manage the transposition process of the IORP II directive.

The over-arching objective of IORP II is to facilitate the development of occupational retirement savings in the EU.

Many of the provisions contained within the IORP II directive will also support positive reform of the Irish occupational pension sector. The directive provides for a range of new requirements concerning governance, management standards in schemes, safekeeping of assets, the need for clear and relevant information to members, the removal of obstacles to cross-border provision of pension services and the facilitation of cross border transfer of schemes. There are also provisions that will enhance the powers of the pension regulators for effective supervision of IORP.

Implementation of the directive requires legislative change and the Department will ensure that the necessary law, regulation or administrative provisions or necessary changes to existing laws, regulations or administrative provisions will be made to give full effect to the directive. The Pensions Act 1990, as amended, together with regulations made under that Act, is the legislation pertaining to occupational and private pensions and therefore relevant to the transposition of the directive.

Standards in relation to occupational pension schemes will be enhanced by the transposition of the IORP II directive.

I hope this clarifies the matter for the Deputy.