ISME accuses Pensions Board of passing the buck

ISME has hit out at proposals to introduce mandatory employer contributions to PRSAs as an attempt by the Pensions Board to "pass the buck".

ISME claimed the real reason for the small take-up in PRSAs was the failure of the Pensions Board to adequately promote them.

Mark Fielding ISME chief executive described Pension Board CEO Anne Maher's warning of mandatory contributions as "mischievous".

"The Pensions Board have clearly failed to demonstrate any innovation in relation to addressing the pension's shortfall and are now attempting to get Business to 'pick up the tab'," said Mr Fielding.

"Their failure to adequately promote the initiative is confirmed by only 19,000 PRSA contracts being taken up in 2003".

Fielding outlined that labour costs, as confirmed from ISME's spring quarterly survey, are now the number one concern for small companies and a significant threat to SME competitiveness.

ISME say that any further increases would lead to a dramatic increase in business costs, due to smaller companies being more labour intensive, with the consequence of additional job losses.

ISME called on the Government to scrap PRSAs and introduce a State-backed pension plan similar to that operated for SSIAs, where financial incentives will be provided to promote employees to contribute to their future retirement needs.