Dáil Éireann Debate, Thursday - 7 February 2013
59. Deputy Patrick O'Donovan asked the Minister for Finance if the AVC withdrawal scheme introduced in Budget 2013 will cover PRSAs or if it is just occupational pensions; if it does not include PRSAs, will it be included; and if he will make a statement on the matter. [6523/13]
View answerIn my Budget 2013 speech, I announced that I would make provision in Finance Bill 2013 for persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits to withdraw up to 30% of the value of those contributions. The provisions will not apply to contributions made to a PRSA (other than additional voluntary contributions made by a scheme member to an AVC-PRSA product). Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option will be available for 3 years from the passing of the Finance Bill. This is a restricted measure which will enable rather than incentivize certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs.
