Joan Burton (Dublin West, Labour)
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Question 281: To ask the Minister for Finance if he will report on measures being taken by the Revenue Commissioners to prevent retired persons exploiting a loophole in the SSIA pension incentive scheme and investing €7,500 in an approved pension scheme, claiming the €2,500 bonus and removing the €10,000 immediately; the way in which Revenue plans to monitor the pension incentive; and if he will make a statement on the matter. [30732/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Let me make it quite clear, I have not imposed any new age restrictions in relation to this product. There is no bar on retired persons availing of the scheme within normal pension rules.

However, some publicity has been given recently to the possibility that SSIA holders who are already retired might transfer matured SSIA funds into a savings product, claim the Pensions Incentive Tax Credit and withdraw the topped-up amount immediately.

This is not the purpose for which the incentive was introduced. Accordingly, I announced in a press release on 29 September last that I will introduce legislation at the earliest appropriate opportunity to ensure that, with effect from 29 September 2006, individuals who avail of the Pension Incentive Tax Credit only to withdraw the funds immediately or within 1 year will not get the benefit of the incentive.