Association of Pension Funds wants incentives in budget

THE prospect of the state pension not being cut as part of the upcoming budget has been welcomed by the Irish Association of Pension Funds (IAPF) but the organisation has expressed concern over the long-term health of occupational pension schemes.

In its pre-budget submission, published yesterday, the IAPF warned if the Government reduces incentives for pension schemes next month, it will result in fewer people saving less.

“The commitment in the Renewed Programme for Government to introduce a single 33% rate of tax relief on employee pensioncontributions, if implemented now, will have a devastating effect on pension provision in Ireland,” said Jerry Moriarty, director of policy at IAPF.