Michael Lowry (Tipperary North, Independent)
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Question 127: To ask the Minister for Finance if his attention has been drawn to the fact that many people, particularly older people who have retired, may be unfairly discriminated against in respect of availing of Government pension incentives; if retired people and pensioners can avail of the incentive; if he will allow retired people to avail of the initiative where SSIA has already matured over three months ago; and if he will make a statement on the matter. [32289/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Pensions Incentive Tax Credits scheme was introduced by me to encourage SSIA holders, particularly those on low incomes, to continue the savings habit and to commence or improve their pension arrangements. I have not imposed any new age restrictions in relation to this incentive. 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 Pensions Incentive Tax Credits only to withdraw the funds immediately or within 1 year will not get the benefit of the incentive.

I should also explain that the 3 month limit for re-investment of SSIA funds into an approved pension product is being extended for SSIA accounts maturing in May and June 2006 in order to give potential investors and pension administrators more time to make the necessary arrangements. For SSIAs maturing in May and June, the time period for making the necessary investment and availing of the incentive has been extended to 31 October 2006. SSIA holders whose accounts matured in any month from July 2006 also have time to make the necessary arrangements and avail of the incentive.