To recap, the following specific recommendations are set out in the report:
1. Continue to monitor the implementation of the 2012 Consumer Code (Central Bank) and take specific actions to:
a. Examine the practice of re-brokering to ensure that it is always in the best interests of the consumer; and
b. Conduct an exercise to ensure compliance with the recently introduced requirement for Annual Statements.
2. Develop approaches to improve consumer, employer and trustee awareness and knowledge of pension charges. This should ensure that information is clear and concise. It should be standardised, where possible, and based on best practice (several organisations have a remit here).
3. Develop a communications action plan on pension charges (several organisations have a remit here).
4. Improve trustees’ knowledge and awareness of pension charges (Pensions Board). Take specific actions to:
a. Develop a separate module on pension charges in trustee training;
b. Provide a support service to trustees setting out principles and best practice.
5. Review occupational pension disclosure regulations specifically to:
a. Provide for the issue of an Annual Statement to all deferred members (Department of Social Protection, Pensions Board);
b. Improve the information provided in the Statement of Reasonable Projection and the need for focussed detail should be reviewed (Department of Social Protection, Pensions Board).
6. Monitor developments and continue efforts to develop a single standard measure that would assess all costs and charges and thereby enable easier comparisons to be made (Department of Social Protection, Central Bank, Pensions Board).
7. Conduct further research on the drivers behind consumer choice of individual pension products – with particular reference to PRSAs.
8. Ensure data on charges is collected on a periodic basis - 3 yearly intervals is considered appropriate - to allow for continued scrutiny and future decision-making. (Central Bank, Pensions Board).
9. Evaluate the impact of this report, these recommendations and future EU developments after two years and assess if further and more stringent recommendations are required (Department of Social Protection, Central Bank, Pensions Board).
This content contains the views of the author and not the views of ITC Limited.
*Please note this content is the view of the author and not of Independent Trustee Company