Joan Burton (Dublin West, Labour)
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Question 85: To ask the Minister for Finance if his attention has been drawn to the cases whereby former public servants, in particular those at University College Dublin or other institutions of higher education, could have their pension subject to the pension levy; and if he will make a statement on the matter. [23694/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The pension-related deduction is calculated by reference to remuneration. Remuneration is defined at section 1 of the Act as emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies or is applied and payable by or on behalf of a public service body to a public servant for his or her services as a public servant. This definition includes non-pensionable pay, including overtime, acting-up allowances and benefit-in-kind. The deduction is not chargeable on pension income received by an individual. Any individual whose pension income is subject to the deduction should take the matter to the body paying the pension in the first instance.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 86: To ask the Minister for Finance his views on allowing owners and managers to tap into their own personal pension funds as security for loan to support the survival of their business through the present crisis. [23716/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The rationale for giving tax relief for contributions to various types of retirement savings products is to encourage and promote savings over the long term in order that individuals will have an adequate replacement income in old age. A pension fund is not a "rainy day" fund in the normal sense of that term. Emerging demographic indicators point to increasing numbers of people living longer, with a longer period spent in retirement than previously. Any proposal, however well intentioned, that would allow pre-retirement access to retirement savings could significantly reduce the quantum of pension savings available to those individuals in old age.

Revenue approval of pension schemes is given on the basis that a scheme can only provide "relevant benefits" as defined by Section 770 of the Taxes Consolidation Act, 1997. This means, essentially, that benefits may only be paid at the point of retirement (usually from age 60) or on earlier death. In addition, the legislative provisions under which the Revenue Commissioners may approve a retirement benefits scheme would appear to prohibit the assignment of the benefits of a pension scheme for the purpose set out in the Deputy's question. I have no plans to amend these various provisions.