Pensions Board accepts decision to freeze occupational pension fees

The Pensions Board has accepted the decision to freeze fees payable by occupational pension schemes. The board had sought an increase from January 1st next.

Currently, funds pay £5 per scheme member per year. It is understood that the Pensions Board wanted a 40 per cent increase to £7 per member. Pension fees generated more than £1.7 million (€2.2 million) for the board last year. The fee was last increased in January 1998 from £3 per head. Some 630,000 employees are members of pension schemes.

The main reason given by the Minister for Social, Community and Family Affairs, Mr Dermot Ahern, for not increasing the fee was the introduction of the euro. The chief executive of the Pensions Board, Ms Anne Maher, said she accepted the Minister was not increasing any discretionary charges during the currency changeover. She said this was perfectly valid and that the board would look at the implications of the increase being put on hold.

"Of course, we would have preferred an increase but we didn't want to do something that would be administratively complicated so we are prepared to wait," Ms Maher said.

Mr Ahern said the fees would be increased at a future date and the increase would be communicated well in advance to the industry.