Dáil Éireann Debate, Tuesday - 16 April 2013
230. Deputy Timmy Dooley asked the Minister for Finance if he has given any consideration to allowing consumers in debt to Revenue to transfer funds in PRSA accounts as a means of discharging their liability; and if he will make a statement on the matter. [16201/13]
View answerThe Deputy’s question represents a variation on requests for a general extension of pre-retirement access to pension savings beyond the provision currently included in Finance Act 2013 which relates solely to Additional Voluntary Contributions (AVCs). In my Budget 2013 speech, I announced that I would make provision in Finance Bill 2013 for persons making 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 Any amounts withdrawn will be subject to tax at the individual’s marginal rate.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 is available for 3 years from the enactment of Finance Act 2013 (i.e. 27 March 2013).
As I have made clear already in response to previous Parliamentary Questions, this is a restricted measure designed to 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, irrespective of the use to which such funds would be put.
