IRELAND NEEDS to create a more equitable regime for all pension savers, the Irish Association of Pension Funds (IAPF) said yesterday.

As the industry lobby held its annual conference, it suggested the pensions system should be redesigned to allow both public and private sector workers provide for their retirement while maintaining exchequer savings.

“The Government has outlined its intention to apply a cap of €60,000 on pensions that receive State support,” chairman Maurice Whyms said. “The IAPF contends that this measure has the potential to provide an equitable platform for retirement planning. Anyone who wants and can afford a pension income in excess of €60,000 can then provide for it themselves.” He said the majority of people would be unaffected by the measure, given their salary levels.

“This measure could be introduced in a manner that could ensure the same rules apply to all those saving for retirement – whether they are politicians, public servants, private sector workers, or self-employed.”

The group, which represents the pension fund industry, said it was prepared to examine how such a cap could be applied to existing pension savings “in an equitable manner that achieves its objective of sustainable, fair and simple pensions”.

Such a measure would allow the Government not to proceed with the reductions in tax relief on employee and self-employed contributions proposed by the last Government, Mr Whyms said.

“Uncertainty in relation to the Government commitment to pensions, the cuts in the last budget and the levy on private section pension savings all have lead to a significant drop in consumer confidence in retirement saving and consequently a drop in savings.

“As a society, we now need to consider how we can repair that confidence.”