The Pensions Board’s deadline for the submission of responses to its consultation on the simplification of defined contribution pension provision passed at the end of February. The consultation sought views on a number of different issues. These ranged from the number of different pension vehicles to pension adjustment orders to disclosure requirements.
A&L Goodbody have been involved in the drafting of the response of the Association of Pension Lawyers in Ireland. In general, the regulation of defined contribution pension provision works but we consider that it can be rationalised, streamlined and improved somewhat. It is likely that there will be action on foot of the submissions sent to the Pensions Board. We believe that any reform of the regulation of defined contribution arrangements in Ireland will be considered alongside a review of the fees charged by pension product providers. We also believe it will be considered in light of the auto-enrolment regime that was proposed some time ago which Government has indicated will be brought into effect at some point in the future.
We wait to see what reforms will come of the consultation exercise and welcome the fact that this is an area in which the Board is being proactive in seeking to improve the regulatory framework. One key challenge we see with pension provision in general is getting workers and other individuals who are under retirement age to engage actively with retirement saving. Without such engagement, the full benefit of any regulatory simplification will not be seen.
Read more on the Pensions Board’s consultation request on the simplification of defined contribution pension provision