Peter Fitzpatrick (Louth, Independent)
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270. To ask the Minister for Finance if he will reconsider the current approach to one member pension arrangements and changes to personal retirement savings accounts in the Finance Bill 2022 in October 2022; if he plans to enforce this PRSA benefit-in-kind, which leaves a benefit taxable liability in the hands of the staff member; and if he will make a statement on the matter. [49821/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Interdepartmental Pensions Reform and Taxations Group (IDPRTG) was established to carry out a number of tasks set out in the Roadmap for Pensions Reform 2018 -2023. The Roadmap set out the need to promote long-term pension saving to address income adequacy in retirement, in particular for low income earners.

The IDPRTG is chaired by the Department of Finance, and includes representatives from the Department of Public Expenditure and Reform; the Department of Social Protection (DSP); the Office of the Revenue Commissioners; and the Pensions Authority. In 2020 the IDPRTG published a report which set out a number of actions to aid in the harmonisation and simplification of supplemental pensions. Finance Act 2021 introduced a package of measures to give effect to some of the actions set out in the group’s report.

The Group continues its work to implement the actions set out in the Group's Report. Accordingly, a number of proposals from the 2020 Report are currently being worked on, some of which are technical in nature and others which have wider policy implications necessitating careful consideration through the normal policy channels. One of these actions, designed to aid in the harmonisation and simplification of supplemental pensions, is:

‘The differential treatment of the PRSA for funding purposes should be abolished, employer contributions to PRSAs should not be subject to BIK.’

As indicated in this year’s Tax Strategy Group paper www.gov.ie/en/collection/d5b41-budget-2023-tax-strategy-group-papers/ one of the pension policy issues actively being considered is to abolish the differential treatment of the PRSAs for funding purposes.

The IDPRTG focused closely on this issue during the course of 2022, examining a number of methods that could be used to achieve equalisation of the funding options for occupational pension schemes and PRSAs.

As the Deputy is aware, the Finance Bill each year contains a combination of items announced in the Budget and a number additional items which are not included in the Budget for various reasons. It is my intention to publish the Finance Bill on the 20th of October subject to the agreement of the Government in advance of that date.

As the Deputy will appreciate, it would not be appropriate for me to comment on the measures that may be included in the Finance Bill in advance of Government decisions on these measures.