Thursday, 2 December 2021
Department of Employment Affairs and Social Protection
109. To ask the Minister for Employment Affairs and Social Protection if the Pensions Council is undertaking a cost transparency initiative in respect of the costs and charges applied to the management of private pensions; the details on the nature and timeline of the initiative; and if she will make a statement on the matter. [59674/21]
The Pensions Council is a body established under Section 26B of the Pensions Act 1990. Its key role is to advise the Minister for Social Protection on matters relating to policy on pensions and to represent and protect the consumer interest. Both I and previous Ministers have asked the Council to give special attention to matters relating to charges.
On 4thMarch 2021 I wrote to the Council asking it to consider the merits of introducing in Ireland an initiative similar to the UK’s ‘Cost Transparency Initiative’ for pension providers. The availability of comprehensive and transparent information on costs and charges is important and helps consumers to decide whether investments represent value for money. I also suggested that the Council consider whether such an approach is effective on a voluntary basis, as in the UK, or whether it operates better on a mandatory basis, such as in Denmark and the Netherlands.
My understanding is the Pensions Council is actively considering the matter at this time and is due to respond to me on the issue in the first half of 2022.
I hope this clarifies the matter for the Deputy.