MFSA flags missing information in pension statements

The Malta Financial Services Authority (MFSA) has identified shortcomings in the information provided to pension members, following a review of pension statements issued by retirement scheme administrators in Malta.

The review examined whether pension statements contained the information required by law and whether members were being given clear details about their retirement savings, contributions, investment performance-related information, fees and future benefits.

The findings relate to statements covering the 2024 reporting period. The MFSA reviewed five licensed Retirement Scheme Administrators, representing 45 per cent of those licensed in Malta. The assessment covered 155 Member Statements and 45 Pension Benefit Statements.

What did the MFSA find?

The review identified cases where pension statements did not include all the information required under the applicable rules.

For people saving for retirement through personal pension schemes, some statements were missing details about investments, fees and charges, contributions, investment managers or advisers, and important changes affecting their accounts. In some cases, statements were not issued or did not comply fully with regulatory requirements.

For other types of personal pension schemes, the Authority identified missing information about contributions, retirement benefits and charges.

The review also found shortcomings in statements issued under occupational pension schemes, which are generally linked to workplace pension arrangements. These included missing details about costs and charges, assumed retirement ages, member identification and other information required by the rules. Information about important changes during the reporting period was also absent from the statements reviewed.

Why does this matter to pension members?

Pension statements provide information about a person's retirement savings and the benefits they may receive in the future. They can also help members understand the contributions being made and the charges associated with their pension arrangements.

When required information is missing, members may not have a complete picture of their pension arrangements based on the statements they receive.

The MFSA noted that the shortcomings identified could affect members' ability to understand their retirement savings and make informed decisions.

What is the MFSA asking pension administrators to do?

The Authority expects Retirement Scheme Administrators to ensure that pension statements comply with regulatory requirements and include all mandatory information.

It has also called for stronger internal controls, oversight and quality checks to help ensure that statements are accurate and complete.

What happens next?

The MFSA will continue monitoring pension statements through document reviews and on-site inspections. Administrators found to have significant or recurring shortcomings could face regulatory or supervisory action by the Authority.