Levy Proposal
- An annual levy of between 0.5% and 0.6% of the pension scheme assets of all pension savers including savings in occupational defined benefit and defined contribution schemes, approved retirement funds, retirement annuity contracts and PRSAs.
- This levy will be applied for a minimum period of 4 years from 2011 to 2014 and is intended to raise €450 million per annum over this period.
- The Government intends to enact new legislation which will permit the benefits of pensioners in defined benefit pension schemes to be cut.
- This measure is solely being targeted at private sector pension savers - there will be no levy on long term savings accumulated through other vehicles or the benefits provided to members of unfunded schemes including the €130b of public sector pension's commitments. The proposal appears to completely exempt these groups for this new tax.
Note to the Editor
About IAPF
Established in 1973, the Irish Association of Pension Funds (IAPF) is a non- profit, non-commercial organisation whose aim is to promote financial security for all retired people.