Caít Keane (Fine Gael)

I welcome my constituency colleague, the Minister of State, Deputy Brian Hayes, and thank Senator Jim D'Arcy for sharing time.

Will the Minister of State review the provision in the Finance Bill (No. 2) 2011 whereby the level of guaranteed income required for entry into an approved retirement fund, ARF, is being increased from €12,000 to €18,000? The conditions of qualification for these schemes are being changed in such a way that people on low incomes are effectively excluded from participation, including those who have saved in additional voluntary contribution, AVC, schemes during the years. The increase in the minimum income threshold to €18,000 will not bring in additional moneys to the Exchequer, but it will prevent those on low incomes, including people in lower grades in local authorities and the Civil Service and low paid workers in the private sector, from opting for ARF schemes. In addition, funds will be locked in under these schemes until a contributor reaches 75 years of age. People may be living longer but most wish to access some of their retirement money before they reach that age. Many such workers will opt out of pension schemes altogether and make no provision for their retirement. I hope the Minister of State will review this provision.