Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I acknowledge that Deputy Sherlock only has the best of intentions with amendment No. 22, but I am afraid that, as on Committee Stage, I am unable to accept it. While this amendment might seem like a straightforward proposal and I accept the Deputy's bona fides in tabling it, a range of complexities mean it will require time to determine the appropriate standards that should apply in respect of employments that will be exempt from the requirement to make AE contributions. As the Deputy will be aware, the Bill sets out that the Pensions Authority will assist the new authority in this work over the coming years, so the Pensions Authority will be involved. It is happy to work with us.

There are a number of relevant issues. First, the standards that need to be set will not only be about the contribution levels into an alternative pension scheme as compared to the contribution levels into the AE scheme. The Bill sets out clear instructions when it comes to contribution levels: they are always to be based on gross earnings; they are always to be matched by the employers; and they are always to be topped up by the State. The net amount going into a person's pot through AE will be transparent and easy to calculate. In contrast, contributions into other pension schemes can start from a base other than gross earnings. Sometimes, employers contribute. Sometimes, they do not. The tax relief applicable also plays a role. As such, to try to compare the net amount going into a person's pension pot from AE versus a different pension scheme is a bit like comparing apples and oranges.

Second, there are issues relating to supplementary benefits, which are provided by some pension schemes but may not be provided by AE or may not be provided in the same way, for example, spousal benefits. The value of these benefits to the individual compared with what AE has to offer will depend on that person's personal circumstances and earnings.

Third, there are a range of technical issues relating to the reporting of data to the new authority. These will need to be determined with the assistance of the Revenue Commissioners and the Pensions Authority. They will require technical systems to be developed to ensure that they operate as intended.

It is for these reasons that I cannot accept the Deputy's amendment.

See this speech in context