Dáil Éireann Debate, Wednesday - 8 March 2017
131. Deputy Pearse Doherty asked the Minister for Finance the expected annuities on retirement based on reaching the standard fund threshold of €1.3 million if the standard fund threshold was reduced to €1.3 million; and if he will make a statement on the matter. [12218/17]
View answer132. Deputy Pearse Doherty asked the Minister for Finance the expected annuities on retirement based on reaching the standard fund threshold of €2 million; and if he will make a statement on the matter. [12219/17]
View answerI propose to take Questions Nos. 131 and 132 together.
In Budget 2013 I indicated that tax relief on pension contributions would in future only serve to subsidise pension schemes that deliver income of up to €60,000 per annum. Extensive work was subsequently undertaken to consider the technical aspects of delivering on this Budget undertaking. This work was of necessity based on 2013 valuations. While there was not a direct specific correlation, this led to the reduction from €2.3 million to €2 million in the SFT in Budget 2014 and Finance (No.2) Act 2013 with effect from 1 January 2014. Without engaging in similar detailed work it would not be possible to make an estimate of the annuities that could be expected where the SFT had been reduced to €1.3 million.
