Monday, 22 April 2013
- SFA says cost of mandatory pensions would far outweigh benefits
The Acting Director of the Small Firms Association, Avine McNally has said that the OECD report on the Irish pension system proposing a compulsory pension scheme will prove costly to business, employees and the Exchequer without any associated benefits in the long-term.
“The cost of compulsory pension provision to the economy as a whole is clearly prohibitive. With small employers struggling to keep their doors open, and maintain employment, it is unacceptable to impose an extra cost on labour for employers and could prove to be the “death knell” for some small firms.
“With many employees already having less disposable income, due to reduction in working hours, basic pay rates and other remuneration benefits, the willingness of people to accept compulsory pension savings is seriously questionable. The Exchequer contribution also has to be funded by the tax-base, which is made up of business and employees, so they will effectively be hit twice,” said McNally
“Moving to compulsory pension provision makes no sense, as Ireland still have a comparatively young population in comparison to the rest of the EU, and have by no means exhausted the many opportunities still available to us to increase the success of voluntary schemes,” concluded McNally.
For further information contact: Avine McNally, Acting Director, Small Firms Association Telephone: 01 605 1633 (office) or 087 645 0205 (Mobile).