Tuesday, 5 March 2013

Questions (157)

Niall Collins


157. Deputy Niall Collins asked the Minister for Finance when legislation will enable persons to withdraw up to 30% of their AVC contributions; and if he will make a statement on the matter. [11328/13]

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Written answers (Question to Finance)

In 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. Any amounts withdrawn will be subject to tax at the individual’s marginal rate.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 2013 Finance Bill which is expected to become law in early April at the latest. This is a restricted measure which will enable rather than incentivise 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.