Dáil Éireann Debate, Thursday - 3 December 2009
41 Deputy Mary Upton asked the Minister for Finance his views on the recently published ESRI report on pension policy, Pension Policy New Evidence on Key Issues; and if he will make a statement on the matter. [44888/09]
Amharc ar fhreagraThe Report referred to by the Deputy was published by the ESRI on 25 November last. The Report deals mainly with the question of whether existing tax incentives for private pension provision would be better targeted to encourage improved coverage by allowing relief on contributions at the standard income tax rate or at a hybrid rate of 30% rate. While apparently seeing merit in both approaches, the Report favours tax relief on pension contributions at the standard income tax rate in conjunction with sustaining the State Pension and schemes to increase pension coverage among lower to middle income earners.
The recently published Renewed Programme for Government includes a commitment to introduce a single 33% rate for tax relief on private pension provision in the context of the National Pensions Framework. This would result in a reduction in the tax relief on pension contributions available to higher rate taxpayers and an additional incentive to pension savings for standard rate taxpayers. However, the full detail and timing of the introduction of this measure have yet to be decided. I will bear the ESRI Report in mind in the context of delivering on the Government's commitment in this area.
