Government announcement of Jobs Initiative
5 May 2011
While LCP Ireland welcomed the Government's announcement of the 'Jobs Initiative' to stimulate employment, they expressed concern at the funding mechanism.
Statement from Martin Haugh, Partner at LCP Ireland Ltd: "We are very disappointed in the Government's announcement today of the funding for the 'Jobs Initiative'. The proposed funding mechanism involves legalising the appropriation of funds from private pensions. This action goes against the very principles laid down in the National Pensions Framework document published by the Government last March.
It is recognised that the Government and the pensions industry must work together to create a culture whereby employees are encouraged to take ownership of their own retirement planning, thereby reducing the long-term financial burden on the Sate.
We believe that the actions announced today greatly undermine these efforts. Targeting private pension funds will result in a direct dis-incentive to private sector employees to invest in their own retirement.
Ultimately this means that the responsibility for financing retirement will revert back to the Sate, creating an increased financial burden in the long term."
