Pensions sector under attack

IRELAND’s creaking pensions sector has come in for further criticism, with the head of the Pension Funds Association warning that further takes from the sector, in the upcoming budget, could ultimately kill off any long-term savings culture here.

A survey of Irish-managed pension schemes, undertaken by the Irish Association of Pension Funds, found that respondents have paid €112m via the controversial pension levy tax and that all have had to pay the levy from pension members’ funds — resulting in the value of employee benefits being reduced to cover the levy.

“Any attempts to extract more run a serious risk of making a difficult situation impossible. In considering Budget 2012, the Government needs to take into account the significant contribution it has taken from the pension sector this year, the negative impact this is having on pension savings and the long-term consequences of this,” according to association director of policy Jerry Moriarty.