Thursday, 7 March 2013

Ceisteanna (78)

Seán Kyne


78. Deputy Seán Kyne asked the Minister for Finance if consideration has been given to enabling a citizen who is experiencing financial difficulties to access previously made pension contributions in a similar manner to the access being granted by the Finance Bill to AVC funds for the sole purpose of alleviating a mortgage arrears problem. [12273/13]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In my Budget 2013 speech, I announced that I would make provision in Finance Bill 2013 for persons making Additional Voluntary Contributions (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 Any amounts withdrawn will be subject to tax at the individual’s marginal rate.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 will be available for 3 years from the passing of the Finance Bill. This is a restricted measure which will enable rather than incentivize 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.