Olivia Mitchell (Dublin South, Fine Gael)
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Question 114: To ask the Minister for Finance if consideration is being given to the release of private pension funds, particularly to those who are in difficult financial straits and perhaps are unable to pay their mortgage; and if he will make a statement on the matter. [11428/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy's question is principally a matter for the Minister for Social Protection, but tax legislation and rules are also relevant to the issue. Generally speaking, once an occupational pension scheme member has at least two years qualifying service for pension purposes, that member is entitled under the Pensions Acts to preserved pensions benefits on leaving employment and does not get a refund of contributions.

The rationale for giving various tax reliefs to pension savings schemes in the first place is to encourage and promote savings over the long term in order that individuals will have an adequate replacement income in old age. Emerging demographic indicators point to increasing numbers of people living longer and healthier lives with more of their lives spent in retirement than previously.

I am conscious of the case being made for pre-retirement access to pension funds but there is also a strong case for maintaining the ring-fencing of pension savings to ensure that individuals have an adequate post-retirement income. This is not a simple matter and while I am open to examining it further, in conjunction with the Minister for Social Protection, it would require very careful consideration before any changes could be made to the current arrangements.