PRESS RELEASE - TWOMEY – CAN WE TRUST THE SAME FUND MANAGERS AGAIN?

Dr. Liam Twomey of Fine Gael has called for a proper debate on the proposed pensions plan published on Wednesday.

“There is a need for the government to explain about these proposals to the people. I have been paying into a private pension plan for the last 15 years. That fund is now worth two thirds of the amount of money I have paid into it. There has been no growth or interest. The Government is saying it wants the same fund managers to manage the future pensions of low-paid workers in the same way. Low-paid workers cannot afford to take such a hit. The government needs a more risk free pension plan for low paid workers.”

Dr. Twomey pointed out that not only will employees be put under pressure to pay in to a pension that has no guarantee of a return but also the employer will have to pay towards the pension of each employee. At a time when employers are under pressure, when wages are one of the highest costs, the government is adding more to their bills. “Employer organisations claim that they will have to find the money through either pay cuts or productivity savings.”

“There is no doubt that this is a big issue for the future; young people with over forty years to wait for a pension need to prepare now. Other workers and indeed those who are not working must also engage in this debate as it will cost them now but there is no certainty of what the future holds.”

Dr. Twomey added that alot of people from Wexford had contacted him regarding the big hits that their pension funds have taken. “We have to ensure that this does not happen again and I will continue to put pressure on the Government to ensure that there is a proper debate before these proposals become finalised.”