New pensions regime must not hit employers

AS a small business employing 35 staff we agree with the principle of making pension contributions mandatory, but it must not be another tax on work.

Employers already pay 10.75% PRSI and another 2% would only increases costs and be a disincentive to job creation. We would like to see:

1. If we employers pay the 2%, then we must be given a credit against our PRSI obligations or against employees’ wage increases.

2. Employees must be taken on full-time for a minimum of 12 months before qualifying.

3. All administration must be borne by the financial institutions.

4. To qualify, all pension funds must be created and invested in Ireland.

5. Strong oversight of insurance companies to ensure fixed commissions and performance of funds. Commissions cannot be as a percentage of premiums. Pension fund performance recently has been horrible, so accountability is essential.

6. Employees should get tax relief on their contribution of 4%

This would be fair to everyone, ensuring no added burden to employers and also meeting the Government’s objectives.

Seán and Áine Murphy

Hopscotch Childcare

Bridgefield

Curraheen Road

Cork