Wednesday, 27 February 2013

Questions (81)

David Stanton

Question:

81. Deputy David Stanton asked the Minister for Finance if he has considered introducing legislation to allow indebted persons with supplementary private pension coverage early access to a proportion of their retirement savings; and if he will make a statement on the matter. [4044/13]

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Written answers (Question to Finance)

Finance Bill 2013 provides that persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits can withdraw up to 30% of the value of those contributions. Any amounts withdrawn will be subject to tax at the individual’s marginal rate.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.