Pension reform throws harsh light on Irish retirement savings
It was fitting somehow that the biggest regulatory reform of Irish pensions was announced with no fanfare. Just a press release issued without notice at the end of the working day – after 5:30pm.
Pensions are a difficult sell and, at first sight, this latest landmark reform is an indicator of why. Called IORP II, the acronym is even more impenetrable than its actual title – the EU directive on the activities and supervision of institutions for occupational retirement provision. Essentially, it is designed to improve governance of pension schemes and communications with pension scheme members.
Few people would argue they are not sensible ambitions, but they will cause turmoil in the Irish market.
Ireland accounts for close to 50 per cent of all pension schemes in the EU even while we have just 1 per cent of its population. Thousands of employers have small schemes for small numbers of employees overseen by trustees who are often enthusiastic amateurs.
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