Date Released: 14 November 2012
A study published by the ESRI has called for the cap on earnings that can be used in any year to claim tax relief to be reduced from €115,000 to €75,000. The report shows that executive directors also have far more favourable pension funds than other employees.
Welcoming the publication of the ESRI report on tax subsidisation for the private pensions of top earners, SIPTU General President Jack O’Connor said:“The ESRI is to be complimented on publishing a well-researched investigation of an obscene subsidy for those at the top of the income spectrum in our society. Even in the best of times this was never morally defensible.
“In the current circumstances, when the majority of people in Ireland are suffering the consequences of the absurd Troika driven one-sided austerity agenda, it is absolutely intolerable. Over the years we in the trade union movement have lobbied hard to persuade governments to reduce the threshold for tax subsidisation of private pensions.
Whereas we have met with some limited success, progress has been far too slow.
“As an absolute minimum the current threshold should be reduced from €115,000 per year to €80,000, with parallel reductions in the maximum life-time pension pot allowable. It should be accompanied by the gradual development of a range of measures to incentivise pension savings by lower income workers, leading ultimately to a mandatory pension system for all.”