Dáil Éireann Debate, Wednesday - 19 January 2022
329. Deputy Éamon Ó Cuív asked the Minister for Finance if it is intended to change the tax relief on pension contributions for employees if an auto-enrolment pension scheme is introduced; and if he will make a statement on the matter. [1383/22]
View answerIreland operates what is described as an “Exempt – Exempt – Taxed” or “EET” pension regime. Contributions to a pension fund are relieved from tax and growth in these funds are also accumulated on a tax-free basis. Payments out of the fund during retirement are then subject to income tax, and USC and PRSI where applicable. I do not have any plans to change the current arrangements for tax relief on pension contributions.
As the Deputy may be aware, the Programme for Government contains a commitment to introduce a pension auto-enrolment system. This aims to address the low proportion of Irish employees with supplementary pension cover, which includes both occupational and personal pensions. My colleague Deputy Humphreys, Minister for Social Protection, is finalising a proposal for Government on the overall design of the AE system. As such it would not be appropriate to comment on any specific design features of the AE regime in advance of Government approval. In line with the Economic Recovery Plan, published in July 2021, implementation of the AE system will commence over the course of 2022 and 2023 with the necessary legislative, organisational and organisational structures being put in place.
