SEANAD:MINISTER FOR Public Expenditure and Reform Brendan Howlin said he was "very understanding" of the case made for the enabling of private pension holders to have early access to cash from their pension "pots" to help them cope with financial crises.
Responding to a suggestion by Feargal Quinn (Ind), the Minister said there were people in serious financial straits.
A useful response could be crafted to that. Thought would have to be given to whether such an exercise would result in the diminution of people’s capacity to pay their own way and not be a burden on the State.
The Minister was speaking in a debate on the Public Service Pensions (Single Scheme and Other Provisions) Bill 2012.
Fianna Fáil opposed the passing of second-stage, but did not call a vote.
The Bill establishes a pension scheme for new public sector employees and averages pensions out over an entire career rather than on the final salary on retirement.
Mr Quinn said it had been calculated that permitting those with private pensions to draw down a relatively modest percentage could release about €1.3 billion into the economy.
Fidelma Healy-Eames (FG) said she did not agree with exemptions in the new pensions scheme for members of the Oireachtas among others.
Why should a newly elected parliamentarian not be asked to retire if he or she was over 70 years of age, she asked.
Mr Howlin said the electorate could not be told whom it should send to parliament.