The Pensions Authority has issued a consultation document which sets out a package of proposals to reform and simplify supplementary private pension provision in Ireland.
The Minister for Social Protection, Leo Varadkar, T.D., welcomed the reform proposals and related consultation, stating: “The current situation where a majority of our citizens will rely solely on the State pension in retirement is unsustainable and we have a duty to ensure that a better system is now put in place. As a result I regard the development and introduction of a new, universal, workplace retirement saving system for those workers without supplementary pensions as an essential objective of mine as Minister for Social Protection.
In order to successfully deliver a universal supplementary pension system, there is a need to reform and simplify the pension landscape. This is essential if we are to achieve increased coherence and consistency in the pension system and to increase the confidence and understanding of pension savers. This confidence and trust has been seriously damaged and its repair is essential if any reforms are to be successful.”
The proposals set out the Authority’s views of what is needed to reform the provision of supplementary private pensions in Ireland in order to improve outcomes for pension savers and to increase public confidence and understanding.
The Authority is proposing a revised regulatory framework that encompasses the following:
- higher standards for trustees of occupational schemes
- an authorisation process for new occupational pension schemes
- closer supervision of pension scheme management
- better information for members and more transparent charges
- rationalisation of the number of pension savings vehicles.
The proposals, if implemented, are intended to achieve significant improvements in how supplementary pensions are managed and overseen.
More information is available from the Pensions Authority here.
The Society of Actuaries in Ireland will respond to the public consultation, which closes on 3rd October 2016.