The absence of a consultation or notice period before the introduction of minimum contribution standards for Irish occupational pension schemes was “deeply concerning”, Irish Association of Pension Funds (IAPF) chair, Tony Fleming, has said.

Addressing the Minister for Social Protection, Dara Calleary, in his speech at the IAPF’s annual dinner on 26 February in Dublin, Fleming commended the minister on the rollout of auto-enrolment in the country, which came into effect from 1 January this year.

However, he said that the legislation on minimum contribution, which was passed on Christmas Eve, has caused “unnecessary confusion”.

“Pension schemes which for decades have provided employees with the flexibility to select their contribution rate are now being forced to make rapid and unexpected adjustments, having understood no such changes would be needed for several years,” he stated.

While raising his concerns about the lack of consultation, Fleming stated that the association remains “fully available” to the Department for Social Protection (DSP) to “engage constructively” and help “develop solutions that work for employers, pension savers and pension providers”.

“Partnership, dialogue, and careful consultation are central to Ireland’s reputation as a stable and reliable place in which to do business,” he stated.

“We ask that your department and the National Automatic Enrolment Retirement Savings Authority (NAERSA) work with us and the industry to create workable minimum standards, grounded in the true value delivered by employment-based schemes, rather than short-term, overly prescriptive metrics that risk distorting outcomes.”

He also reaffirmed that the IAPF believes no employer should enrol employees in a pension arrangement that delivers less value than auto-enrolment. This, he said, was a disappointing development by a minority of employers.

Indeed, Fleming argued that employment-based pension plans are “strong, well-funded and well-governed”.

“They have a long track record of delivering benefits over several decades. They need to retain the freedom to design solutions that suit their members and to innovate by providing valuable services to members,” he said.

He called on the Minister to work in partnership, to protect strong employer schemes, support innovation, good governance and ensure the “continued success of MyFutureFund alongside a thriving employment-based pension system”.

Turning his attention to the IAPF’s priorities for 2026, Fleming welcomed the Pensions Authority’s consultation on in-scheme drawdown (ISD), of which the IAPF has submitted a response to. The IAPF believes that, if implemented well, ISD could “transform the Irish retirement landscape”.

He also spoke about the association’s commitment to driving transparency and value for money. For this, he said the industry needs to understand and quantify outcomes and services to determine how to measure value.

He continued: “We have prepared a proposed framework that would provide trustees with data on typical fees and charges, investment performance and risk, and importantly, quality of member services. A value for money framework must encourage innovation and investment in services.

“We welcome the Pensions Authority’s engagement with us on this important topic, which will continue over the coming weeks.”

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