Written answers

Tuesday, 28 February 2006

Department of Finance

Pension Provisions

11:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 92: To ask the Minister for Finance the estimated average of the 2 million people at work in respect of pension cover; the number of workers who avail of tax relief-credits for pension purposes; the number and costs, in respect of pensions, including AVCs, ARFs and SSASs for each year from 1998 to date in 2006. [7894/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The pension coverage rate for all persons in employment aged between 20 and 69 in the first quarter of 2005 was 51.5%. These figures are based on a survey update module on pensions, which was included in the CSO Quarterly National Household Survey in the first quarter of 2005.

I am informed by the Revenue Commissioners that the relevant available information relates to the cost of tax relief on pension contributions by employers, employees and self-employed and the exemption from tax of income and gains in the pension funds. This information, together with the numbers of employee and self-employed contributors, is provided for the five income tax years 1998-99 to 2002, the latest year for which it is available. The estimates of cost in relation to contributions by employers and contributions by employees are particularly tentative as this information is not captured in such a way as to enable more precise estimates to be compiled.

The following is the information available.

Estimated Costs and Numbers of Contributors
Tax Relief 1998/99 1999/00 2000/01 2001 2002
'Retirement Annuity Contracts' available to the self-employed and to employees not in occupational pension schemes. â'¬116.2m â'¬180.8m â'¬205m â'¬184.7m â'¬250.9m
Numbers 92,900 104,500 109,300 109,600 110,600
Contributions by employers *â'¬533.4m â'¬595.4m â'¬646.2m â'¬497.7m â'¬623.1m
Contributions by employees * â'¬328.9m â'¬420.5m â'¬471.9m â'¬388.7m â'¬563.3m
Numbers of employees contributing to approved superannuation schemes.** not available 569,220 629,800 670,500 709,300
Exemption of Net Income of Approved Superannuation Funds (Contributions Plus Investment Income Less Outgoings)*â'¬966.5m â'¬1,225.5m â'¬1,292.3m â'¬938.4m â'¬1,271.6m
* These are extremely tentative estimates
** Calendar year figures sourced from annual reports of the Pensions Board

It should be noted that as PAYE taxpayers were charged to tax on their earnings in the period from 6 April to 31 December 2001 and self-employed taxpayers were assessed to tax for that short "year" on 74% of the profits earned in a 12 month accounting period, the cost figures will not be directly comparable with those of earlier or later years. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.

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