I reckon it is made up of a bid/offer spread of 5% ( which for some reason never seems to be classed as a charge) plus the annual management charge.
I always say to people who buy a pension - ask the provider what would the withdrawal value of the fund ( in a therotical situation) be after one year if there was no change in the fund price during the year.
Is this a "low cost" company PRSA by any chance - there are a lot of them out there that would equate to the figures you quote. Even some company DC and AVC schemes have similar charges because nobody bothered to challange them. As a trustee, I pushed our providers for full allocation within our DC and AVC fund and achieved it. Too many trustees bow to the power of the big players or just don't get involved.
If people don't have a net allocation rate of 100%, then they are probably paying more charges than they realise. Nothing wrong with this as long as it's made clear to them, but it's not. Documentation has improved in recent yrs but it's still not good enough.