Caít Keane (Fine Gael)

I do not want to speak specifically on the recommendations but to raise the issue concerning ARFs which I brought to the Minister of State's attention yesterday. I am raising a different angle on ARFs, namely, the increase from €12,000 to €18,000 in the minimum amount required for qualification for entry into a fund. Senator O'Brien spoke about those on the upper echelons of the scale who pay into ARFs, but there are people who can only afford the minimum amount of €12,000 to participate in such a fund. They are now being denied access to the ARFs because they cannot afford the €6,000 difference between the current minimum amount of €12,000 and the new increased amount of €18,000 required for entry. Those people would need to have in their pension pot savings of €120,000 to €150,000 to accrue that amount. It is not feasible for them to now join ARFs.

There is also the qualification that contributors would need to leave their money in the fund until they are 75 years of age. If a person was able to afford the €18,000 minimum qualification required for entry to an ARF scheme, he or she would need to freeze €120,000 of their pension benefit until the age of 75. Who, other than the very rich about whom Deputy O'Brien spoke, would want to do that? There are two sectors in ARFs. For example, people such as the ground staff of local authorities who have put their life savings in AVC schemes will decide that they cannot afford to contribute and they will opt out of the fund. Rather than having people opt out of these funds, this requirement should be revisited. The Minister of State, Deputy Hayes, kindly said yesterday that he would come back with a further answer on this point today and I appreciate that.