Thursday, 30 May 2013

Questions (84)

Róisín Shortall

Question:

84. Deputy Róisín Shortall asked the Minister for Finance the action he has taken to date to give effect to his budget speech commitment that tax relief on pension contributions will only serve to subsidise pension schemes that deliver income of up to €60,000 per annum; and the target date for publication of the legislation to give effect to this by 1 January 2014. [26567/13]

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Written answers (Question to Finance)

In my 2013 Budget speech, I indicated that the necessary arrangements to give effect to the Programme for Government commitment to effectively cap taxpayers’ subsidies for pension schemes that deliver income of more than €60,000 would be put in place next year. A cross-Departmental Working Group of officials has been established to examine, among other things, the changes required to the existing arrangements governing the maximum allowable pension fund at retirement (the Standard Fund Threshold) and other potential alternative approaches for achieving the commitment. The Working Group has also sought views from various interested parties as part of the examination of options for delivering on the Budget commitment.

A Steering Group of senior officials has also been established to provide direction and guidance to the activities of the Working Group. Both Groups have held regular meetings over recent months and their work is continuing. I expect to receive a report on the results of this work during the Summer on which I will base decisions on changes to give effect to the Budget commitment. Budget 2014 will be delivered in October this year and I would expect that any legislative changes in this area will be included in the Finance Bill giving effect to that Budget.