Niall Collins
Ceist:94 Deputy Niall Collins asked the Minister for Finance if he will reconsider the current regulations restricting access to pension funds (details supplied). [23387/11]
Amharc ar fhreagraWednesday, 14 September 2011
Ceisteanna (96)
Freagraí scríofa
I would consider the Deputy's question to be principally a matter for the Minister for Social Protection but tax legislation and rules are also relevant to the issue. Generally speaking, once an occupational pension scheme member has at least two years qualifying service for pension purposes, that member is entitled under the Pensions Acts to preserved pension benefits on leaving employment and does not get a refund of contributions made to the scheme. The rationale for giving various tax reliefs to pension savings schemes in the first place is to encourage and promote savings over the long term in order that individuals will have an adequate replacement income in old age. Emerging demographic indicators point to increasing numbers of people living longer and healthier lives with more of their lives spent in retirement than previously. I am conscious of the case being made for pre-retirement access to pension funds but there is also a strong case for maintaining the ring-fencing of pension savings to ensure that individuals have an adequate post-retirement income. This is not a simple matter and while I am open to examining it further, in conjunction with the Minister for Social Protection, it would require very careful consideration before any changes could be made to the current arrangements.