Michael McGrath (Cork South Central, Fianna Fail)

The Minister will be aware that most defined benefit pension funds are experiencing a funding crisis. How does he suggest such funds should meet the obligation of this levy? The Minister is putting in place a disincentive for companies wishing to bridge the deficit in their pension funds. For example, where a company's pension fund has a deficit of €40 million and it wishes to bridge that deficit, it will be taxed for doing so as the Minister will take €1 million of that €40 million. The Minister is putting in place a disincentive for companies which wish to do the responsible thing for their employees.

Will existing pensioners be affected by this proposal? Is the Minister proposing legislation which will facilitate existing pensioners on defined benefit schemes to have their pensions cut? What are the Minister's intentions in regard to standard rating the tax relief for pension contributions by employees?

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