IRELAND - The Irish Association of Pension Funds (IAPF) has called for social and family affairs minister Seamus Brennan (pictured) to expand the proposed 'euro for euro' pensions incentive to include occupational pensions.
The IAPF said it welcomed the publication of the Pensions Board's report on the national pensions review, but took issue with the fact the proposed creation of the ‘e1 for e1’ government top up was only for Personal Retirement Savings Accounts (PRSAs).
We urge Brennan to ensure that all forms of pension provision operate on a level playing field from a tax perspective, said Joe Byrne, chairman of the IAPF, who added that an equivalent simple tax credit mechanism should apply to contributions to occupational pension schemes so as to ensure the tax treatment of all forms of pension saving were identical.
The IAPF wishes to avoid the risk that existing occupational pension schemes unravel with members moving to individual PRSA contracts where, without the economies of scale which exist under their group schemes, they may enjoy less value for money. The IAPF also reiterated its call fro the Approved Retirement Fund (ARF) options available under PRSAs to be extended to Defined Contribution schemes.
Paul O'Brien, chairman of the IAPF's benefits committee, stated that “this would assist in increasing the attractiveness of pension provision through such schemes, ensuring that the benefit options are equivalent to those provided by PRSAs and complement the agenda of increasing pension coverage and adequacy.” By Damian Clarkson
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