Need for universal pension scheme

Madam, – Peter Murray (March 12th) points out that private pension funds have been “devastated in the stock market melt-down…

Madam, – Peter Murray (March 12th) points out that private pension funds have been “devastated in the stock market melt-down”, and suggests that “instead of squandering more billions in tax-relief on a failed private pensions industry, we now need a universal funded pension scheme”.

Last November, TASC — the think-tank for action on social change — issued a set of policy proposals aimed at fundamentally reforming Ireland’s pension system.

Specifically, we proposed significantly increasing and universalising the social welfare (state) pension, to be funded by standard-rating tax reliefs on private pension contributions.

We also proposed establishing a second-tier earnings-related social insurance pension, which would still allow people to save for retirement, while removing the risk and uncertainty associated with the current system of private pension provision.

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We hope these proposals will attract the support of everyone seeking equal pension treatment for all employees.

TASC’s proposals were developed in collaboration with the TCD Pension Policy Research group, and have been published in a pamphlet entitled Making Pensions Work for People, which can be downloaded from the TASC website (www.tascnet.ie). – Yours, etc,

PAULA CLANCY,

Director, TASC,

South Frederick Street,

Dublin 2.