Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 3:

In page 23, between lines 7 and 8, to insert the following:


"17.—The Minister for Finance shall, as soon as may be after the passing of this Act, prepare and lay before Dáil Éireann a report on the provision of early access to pension benefits in certain limited circumstances including employer paid contributions, regular employee contributions, self-employed personal pensions and Personal Retirement Savings Accounts.".

We discussed the issue to which this amendment relates on Committee Stage. I thank the Minister's officials for circulating his speaking note for Committee Stage, which was quite useful. I will certainly seek a copy of the report that was brought to the Economic Management Council, EMC, in September 2011. The ad hoc group responsible for compiling the report, which was chaired by the Department of Social Protection, recommended that pension savings being locked away until pension age should be maintained. In his speaking note, the Minister also indicated that an OECD report on this issue is currently being compiled. We will await the findings that will be contained in that report.

I am trying to establish Government policy in respect of this matter. A particular decision was make in the context of the budget and an initiative has been taken in respect of certain AVCs. However, the latter is quite restrictive. Is it Government policy that it would not be wise to grant employees or self-employed persons further access to pension funds which goes beyond the scope of what the Minister is proposing in this Bill and as announced in the budget? Is it the case that the Government is giving this a go and that it is not prepared to move any further at this point? Is the reason for this that the Government is in possession of a report which indicates that the State could be exposed to additional liabilities in the future if people's pension provisions are eroded by them accessing their funds early?

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