Written answers
Wednesday, 27 February 2013
Department of Finance
Additional Voluntary Contributions
David Stanton (Cork East, Fine Gael)
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To ask the Minister for Finance if he has considered introducing legislation to allow indebted persons with supplementary private pension coverage early access to a proportion of their retirement savings; and if he will make a statement on the matter. [4044/13]
Michael Noonan (Limerick City, Fine Gael)
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Finance Bill 2013 provides that persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits can withdraw up to 30% of the value of those contributions. Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option will be available for 3 years from the passing of the Finance Bill. This is a restricted measure which will enable rather than incentivize certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs.
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