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Government planning a ‘smash and grab’ on people’s pensions – Smith
The Fine Gael/ Labour Government are planning a ‘smash and grab’ raid on people’s pension schemes taking approximately €2 billion over the coming years, according to Cavan/Monaghan TD Brendan Smith. The Fianna Fáil TD was speaking after the government confirmed that their new jobs budget will be funded by removing €470 million from pension funds every year for the next 4 years.
According to Deputy Smith, this is an unnecessary stealth tax that will penalise pensioners and savers, as well as damaging the economy.
“I am dismayed at the short-sighted and unwise decision by the Fine Gael/ Labour government to raid pension schemes all over the country.
Approximately 90% of our pension funds are already underperforming and yet this government now thinks it is good idea to take more money from these pensions. This will affect hundreds of thousands of pensioners and workers in the public and private sector.
“To pay for their jobs budget, the government is punishing pensioners, savers and those nearing retirement. On top of this, there is no doubt that the move will have a detrimental impact on the performance of our pension funds and an knock on effect for the economy. It will discourage people from investing in Irish pension funds and could lead to more money being diverted out of the country.
“A lot of self employed business people have been hit by the economic downturn, and are now dependent on their pension funds as a source of income. However under the government’s plans these pension funds will be reduced, and that is sure to reduce the payments being made to these people.
“Fianna Fáil in Government came forward with a comprehensive pensions policy that was aimed at encouraging people with modest means to invest in pensions, and tackled the large tax breaks available to the super-rich. I would like to ask the Minister for Finance Michael Noonan whether he has consulted with the Pensions Board in relation to this move proposal.
“We need to be promoting our pension funds as a source of investment, not putting them under greater strain. This measure is a smash and grab on people’s pension funds and it is not the type of action they were elected for,” said Deputy Smith.
ENDS
