JIM FIXES IT FOR PENSIONERS … DALY SORTS OUT EXTRA-EXTRA CHRISTMAS BONUS FOR PENSIONERS

June 6th 2018

JIM FIXES IT FOR PENSIONERS … DALY SORTS OUT EXTRA-EXTRA CHRISTMAS BONUS FOR PENSIONERS

The Chairperson of the Revenue has agreed that thousands of pensioners will be able to tap into pensions they previously were unable to access in the wake of a major policy shift driven by Minister for State Jim Daly.
Previously pensioners who are in an Approved Retirement Fund (ARF) could not access their funds before they were seventy-five unless they had a pension or annuity of €12,7000 a year.

This created problems for those who were on the full state pension and had no other income.
With the full rate of state pension being €12,651 per annum, many pensioners were finding themselves with saved funds locked in an account just because they were 94 cents per week, or €49 euro per annum short of a pension income.

Minister for Older People Jim Daly has been making the case for a budgetary measure that would allow pensioners to tap into their savings since last September.

When no changes were made to the annuity rate in Budget 2018 Minister Daly asked the Revenue if they would include the Christmas Bonus when calculating the figure to allow pensioners access their funds.
This week the Chairman of the Revenue Commissioner wrote to Minister Daly confirming they will alter the rules to allow pensioners access their funds.

The letter stated ‘In light of your recent letter, Revenue have reviewed their approach and will allow individuals who receive a Christmas bonus to take that bonus into account when calculation an individual’s entitlements’.

Minister Daly commended the Revenue for; ‘’facilitating a small but significant change that will improve the lives of people’’.

This he said; ‘’is the essence of good governance, a small but pragmatic change that will improve the lives of people in a tangible way’’.

The previous situation, he said; ‘’represented a glaring anomaly in the system that was preventing healthy and fit pensioners that may want to access their funds to do some travel or buy a new car’’.

‘’Many people made the point to me that funds being locked up to the age of 75 was nonsensical as they may not be fit or well enough to do the things they wanted to do at that age, with the money they had saved’’ he said.

‘’I am glad the Revenue Chairman saw the merit in my proposal and will now amend the scheme rules accordingly” Mr Daly said.

This, he added; ‘’is a major policy shift in relation to pensioner’s retirement funds is about to unlock hundreds of thousands of euro, to be spent in the open economy is pensioners see fit’’.

 

 

ENDS