Dáil Éireann Debate, Thursday - 21 June 2018
63. Deputy Noel Grealish asked the Minister for Finance if the promised review of the Interdepartmental Pensions Reform and Taxation Group on the cost of funded supplementary pensions will include public sector pension schemes, benefits and contributions; if the promised review is solely for the private sector; the timeline for completion and publication of the review; and if he will make a statement on the matter. [27147/18]
Amharc ar fhreagraUnder the Government’s Roadmap for Pensions Reform 2018-2023, a number of specific actions have been allocated to the Interdepartmental Pensions Reform and Taxation Group (IDPRTG). The IDPRTG is chaired by the Department of Finance and includes representatives from the Department as well as from the Department of Public Expenditure & Reform, the Department of Employment Affairs & Social Protection, Revenue and the Pensions Authority.
Action 3.13 of the Roadmap provides for a review of the cost of funded supplementary pensions to the Exchequer in the context of the development of a new auto-enrolment scheme.
The State encourages individuals to save for retirement by offering tax incentives when saving for a pension, and marginal tax relief is considered to be a material incentive to encourage such savings. The income draw-down phase is taxed and, to a degree, tax relief on pensions represents a deferral of taxation. Though public sector schemes generally operate on a pay-as-you-go basis, contributions made by public sector employees and pension benefits received by public sector employees are subject to applicable tax laws.
The IDPRTG is currently considering a number of action points that were identified in the Government's Roadmap. As part of its consideration, it will be important to canvass the views of interested parties and with this in mind my Department is planning to shortly launch a public consultation process. Taking account of the need to give time to elicit the various external views and to then consider the submissions made, my Department is currently planning to report on these matters by the end of the year.”
