`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 politicisAlso since these schemes are final salary schemes current employees who have or will endure pay cuts will presumabley be retiring on pro rata reduced pensions? Is this interpretation correct?
`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
It's not arguable. Working PUBLIC servants have had pay cuts and a Pension Levy. Retired Public Servants have had their pensions cut by 6%to 9%.
Just another scheme that will bring an even bigger divide between private sector and public sector workers..
The public sector are already paying a pension levy .
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.
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.Jerry Moriarty, IAPF director of policy, confirmed legal advice had been sought on the basis the levy could be an interference with property rights. There is also a question of discrimination given that only private sector pensions would be affected.
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...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.
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.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 -
0.6%. Are these guys serious?
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.Looks like it may be challenged
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Yeah, 41% or better relief on the way in, and 0.6% on the fund for 4 years - just to keep it in context.
.
And what do I pay on the way out?.
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?AI could put your tax deductable pension levy into context but could not be bothered.
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