The head of the Irish Pensions Board, Brendan Kennedy has criticised the administration of pension schemes in Ireland where some pension trustees do not even understand their responsibilities.
Retirement planning debate requires a new approach
Mr. Kennedy went on to say that there are problems with defined contribution and defined benefit schemes where pension plans may not be able to fund future retirees.
The Pensions Board attacked what it described as poor pension administration where shoddy record keeping could result in members not receiving all the benefits to which they were entitled. Last year the Pensions Board carried out 28 on-site investigations and discovered four cases which required remedial action.
“It is extraordinary that any pension administrator should be so unaware of its responsibilities that this situation should arise.” said Mr. Kennedy.
He added: “The proportion of schemes where trustees have not fulfilled their legal responsibility is too high.”
Trustees not understanding their responsibilities and over reliance on equities.
Mr Kennedy said the board continued to have concerns about “the understanding that some defined benefit trustees have of their role and responsibilities” while adding that pension schemes in Ireland hold a higher proportion of equities than other comparable countries, which has been a major cause of current deficits in defined benefit schemes.
The Irish Financial Review