Catherine Byrne (Dublin South Central, Fine Gael)
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Question 118: To ask the Minister for Finance his plans to proceed with standardising tax relief on private pensions at 33 %, as set out previously in the National Pensions Framework; if there is a timeframe for implementing this policy; the way this policy will impact pensioners; and if he will make a statement on the matter. [43755/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Income tax relief on employee and individual pension contributions is currently allowed at the taxpayer's marginal income tax rate, that is, at the standard or higher rate of income tax as appropriate in each case.

The National Pensions Framework published in March 2010 sets out a policy approach for the longer-term development of the pension system in Ireland. In that regard, the Framework includes proposals for, among other things, a new supplementary pension scheme based on "auto-enrolment" for those without private pension arrangements where part of the State contribution would be the equivalent of 33% tax relief. In addition, the same level of State contribution or 33% tax relief is proposed to replace marginal income tax relief for existing contributors to pension savings.

The Government made clear in the Framework that the introduction of the new auto-enrolment scheme (targeted for 2014) would depend on prevailing economic conditions. Further details on the Government's position in this general area will be set out in the Four Year Plan to be published tomorrow.