Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

I feel strongly that it is excessive that 25% of a pension fund can be drawn down as a lump sum, tax free. There is no question that it favours the higher earner group. The broad mass of citizens will never be able to qualify for any benefit in regard to this proposal. Therefore, we are perpetuating inequalities as a consequence.

I seek an assurance on one issue. The restriction will apply to a single lump sum or, where more than one lump sum is drawn down, the aggregate value of those lump sums. As it is the practice in some sectors for deferred pension entitlement-draw down, is there any fear that this allows for deferral into another tax year and that the aggregate position would then be avoided? Is it understood that the aggregate position in regard to a series of draw-downs applies into perpetuity and is not time-limited into any one tax year? It is unclear from this and I would like an assurance that there is not inbuilt in the resolution as presented a flaw that will allow for other abuses.

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