Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

There is a benefit that is accrued to them and as the Minister stated, it is a policy decision not to apply universal social charge USC, which does apply to other people who avail of their pensions. I am not arguing for everybody to be able to dip into their pensions, but the only people being facilitated under this legislation are those who have a moderate amount of income. They are not low income individuals. I say that because they have to have a certain amount of pension. These are additional voluntary contributions and therefore it is additional to the requirement of one's pension. A large number of people do not have private pensions, which will be hugely troublesome for the country in the future. There is another cadre of people who have private pensions, but there is another group of people who can afford to add to them. The only people being facilitated under this Bill are those who had enough money at the time to add to them. In terms of what the Minister has done, if we consider the person on the lower income who has just built up their pension pot, when they start to draw it down they will pay the full USC plus their income tax rate whereas the people who had an additional amount of money can get an incentive in whatever way the Minister wants to frame it. I am not sure about the fairness of that approach. This should be dealt with in the same way in that USC should be applicable to them drawing down this pension.