Mr. Tim Duggan:

The person would have to put €80 into the pot. That €80 is deducted from the €1,000, leaving them with €920, which is then taxed at 40%. That bill comes to €368, and when that is deducted from the €920, the person will be left with €552 net. Both people will have €80 in their pension pots and both have been incentivised. The person in AE ends up with a net income of €540 and the person in an occupational scheme ends up with €552. There is a difference between the outcomes.