Insurers call for saving beyond SSIA scheme

The Irish Insurance Federation (IIF) yesterday reiterated calls for the Government to introduce a range of measures to help continue the savings culture created by the Special Savings Incentive Account (SSIA) scheme.

On presenting the IIF's pre-Budget submission to the Minister for Finance, Brian Cowen, IIF president Tom Barry said the maturing of SSIAs from next May presented the Government with a once-in-a-lifetime opportunity to boost overall pension provision among workers.

The IIF is calling on the Government to undertake an intensive promotional campaign on converting SSIAs into pensions, to waive the exit tax on SSIA interest and investment gains if the saver puts at least half of their money into a pension and to lift, on a once-off basis, the tax relief limits on pension contributions.

The federation is lobbying for the extension of tax relief on pensions of 42 per cent to all workers, regardless of income, using tax credits, a facility for savers to access a portion of their pension fund from time to time before the age of 65 and Government-sponsored personal pension accounts for children.

The IIF also called on the Government to deliver the commitments contained in the National Road Safety Strategy 2004-06.

IIF chief executive Michael Kemp said the insurance industry body believed the Government had failed to address the continuing carnage on our roads, contrary to its own progress report.

The IIF is calling for resources to implement the penalty points system, legislation to allow outsourcing of speed camera detection and random breath testing, the speedy introduction of the proposed increase in Garda Traffic Corps, legislation making basic training compulsory for motorcyclists and the abolition of the 2 per cent stamp duty on non-life insurance policies.