Plan may allow SSIA windfalls to be put into pensions

SOCIAL Affairs Minister Séamus Brennan has strongly signalled that he will argue for a State-backed incentive scheme that will allow savers to transfer their special savings accounts windfalls into pension schemes.

As a week-long drive to raise awareness of pension schemes begins this morning, Mr Brennan yesterday said radical thinking and initiatives will soon be needed to avert a pensions crisis as the population ages. The minister's spokesman said that such is Mr Brennan's concern about the looming problem, he has asked the Pensions Board to bring forward the completion date of a review into the adequacy of current arrangements by a year, from 2006 to later this summer. Among other issues, he has asked the board to come up with suggestions as to how savers can be encouraged to transfer their SSIA windfalls into pension schemes. However, it is understood that there may be some resistance from the Department of Finance to any further outlay of State money for a follow-on pension scheme.

The minister is also actively considering introducing legislation that will make investing in pension schemes mandatory.