Terence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

Question 8: To ask the Minister for Finance his views on a matter (details supplied) regarding future legislation pertaining to pensions; and if he will make a statement on the matter. [39302/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The details supplied with the question do not indicate what particular aspect of future legislation relating to private pensions the individual may be concerned about. In my Budget speech earlier this week, I made reference to the sizeable contribution being made by private pension savings towards resolving the difficulties we are facing. I made the point that while I do not propose to move to standard rate income tax relief on pension contributions or to make changes to the existing marginal rate tax relief at this time, further change to the incentive regime for supplementary or private pension provision is required to make the system sustainable and more equitable over the long term. My Department and the Revenue Commissioners will work with the various stakeholders in the next year to develop workable solutions in this area.

I announced certain changes in the broad pensions tax area in the Budget speech, including an increase from 5% to 6% in the rate of annual imputed distribution from approved retirements funds (ARFs) with asset values in excess of €2 million and an extension of the imputed distribution requirements to vested personal retirement savings accounts (PRSAs). These measures will, of course, be provided for in Finance Bill 2012 and further details of these measures will be made available on the publication of that Bill in the New Year.