`Sure is correct. Beginning to lose faith in FG. A few short months ago FG promised to maintain tax relief at the marginal rate and instead introduce a pensions levy http://www.independent.ie/national-news/elections/fgs-grand-plan-2523141.html which I though was fair enough but now they have said that they will reduce the tax relief down to 33% http://www.independent.ie/business/irish/pensions-relief-decision-welcomed-2634841.html And they wonder why we the public have lost faith in politicis
Disagree with the new pension levy
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Seeing as FG didn't get an overall majority, you can't really expect them to implement every detail of their manifesto. Coalition Govts inevitably involve some degree of horse-trading over policies.
Because the country is insolvent and can no longer overpay public servants and retired public servants.
This levy is a disgrace. A mid level employee in the public sector is guaranteed a pension that someone in the private sector has to salt away millions to fund. On the one hand the State are telling us about the pensions timebomb and on the other they're making it nigh on impossible to do so.
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Yorrick
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People voted for change. When Enda and FG is finished with ye thats all you will be left with except it will be loose change
Hi thearus,
It is my understanding that the scheme will apply to large sections of the public sector (ie the large commercial semi state funded superannuation schemes ESB etc). These funded superannuation schemes did not/could not form part of the original public service pension levy.
Of course the proposed pension fund tax cannot apply to unfunded schemes such as exist in the public service as there is no fund to apply the tax to!
aj
It is my understanding that the scheme will apply to large sections of the public sector (ie the large commercial semi state funded superannuation schemes ESB etc). These funded superannuation schemes did not/could not form part of the original public service pension levy.
Of course the proposed pension fund tax cannot apply to unfunded schemes such as exist in the public service as there is no fund to apply the tax to!
aj
The public sector are already paying a pension levy and have also taken two large paycuts on top of the income levy.
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z107
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looks like the government didn't want any strikes... just yet:
http://www.independent.ie/national-news/public-sector-exemption-on-pensions-levy-unfair-2640808.html
Does the means by which our money is taken from us matter anyway? The government has already made the decision that we are all going to pay for their incompetence and gross mismanagement. There will be plenty more public sector cuts and taxes over the next few months.
If you are not affected by this, you will probably be affected by the next tax or the levy after that.
(Unless you are a government minister, of course)
http://www.independent.ie/national-news/public-sector-exemption-on-pensions-levy-unfair-2640808.html
Does the means by which our money is taken from us matter anyway? The government has already made the decision that we are all going to pay for their incompetence and gross mismanagement. There will be plenty more public sector cuts and taxes over the next few months.
If you are not affected by this, you will probably be affected by the next tax or the levy after that.
(Unless you are a government minister, of course)
This is not correct :- the public service is paying a pension levy. But very large chunks of the public sector (commercial semistate sector)are not paying a pension levy. ESB etc. I understand the the proposed pension fund tax will be applied to these very large public sector schemes.
I believe it is only a matter of time before it will be challenged.
Eddie Hobbs not too happy about it and mentioned people should adopt someone from the higher echelons of the PS.
I would be extremely surprised if any challenge comes from the pension industry.
They are well aware that any challenge may prompt the Government to move rather more quickly than envisaged on the question of tax relief on contributions.
If the new levy is applied to the big ESB DB pension funds it is unlikely that any appeal based on public/private sector discrimination would succeed.
If the levy is based on interference on property rights then I think it might have a better chance.
Could a challenge be made on the basis that the proposal is aegist? Since 0.6% of a pension pot built up by a 20 year old is far less than 0.6% of a pension pot up by a 60 year old?
The levy will have a big impact on pensions new business too - at least with changes in tax relief (/deferral) you know where you stand - but a levy on money that you can't access to send elsewhere is nasty and I can't see many people being in a rush to offer up more of their money to be potentially levied in the future - who's to say the levy won't increase to 1% or 2% - and no way out...
Tax relief on the way in, levied between contributing and retiring, exposed to the potentially rubbish performance of private pension funds and then fully taxed and income levied on the way out, most likely at higher rates than the relief you got going in - not overly attractive...
Oh, and if you have an employer-paid PRSA, you'll pay income levy on the way in and on the way out...
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You don't really know where you stand. There is no guarantee of what the tax rules will be when you come to draw down the pension in the future.
Yeah, 41% or better relief on the way in, and 0.6% on the fund for 4 years - just to keep it in context.
I guess the trustees/administrators/funds mustn't be quite on the breadline yet if they can afford to mount a challenge. It is very hard to see how any challenge could succeed, given that the challenges to the public sector levy failed. But hey, why not keep a few poor barristers in funds for a few more months.
And what do I pay on the way out? I could put your tax deductable pension levy into context but could not be bothered.
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Who's going to win Saturday's JLT Lockinge Stakes at Newbury? None of us can see into the future.
Oh please do. Please do put the 5%-8% tax deductable levy (which is levied on some people who get no pension at all) in context with the 0.6% fund charge for 4 years. Which would you choose, if you got to pick?