Dáil Éireann Debate, Wednesday - 6 July 2016
84. Deputy Brian Stanley asked the Minister for Finance why a pension provider (details supplied) is still deducting a pension levy of 0.15% from 1 July 2016 from the Procter and Gamble Ireland defined benefit pension scheme as a result of the 2015 pension levy. [19925/16]
View answerI am advised by Revenue that the Pension Scheme Levy was introduced in 2011. For the years 2011, 2012 and 2013 the rate was 0.60% of the scheme assets. For the year 2014 the rate was 0.75% of the assets and for the year 2015, the final year of the levy, the rate was 0.15%. Under the legislation, the payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees or insurer to decide whether, when and how the levy should be passed on and to what extent, given the particular circumstances of the pension schemes for which they are responsible. However, the legislation also includes safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it must be applied in an equitable fashion across the different classes of scheme members that could include active, deferred and retired members. In no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy. With regard to the specific pension scheme that is the subject of this question, I am advised by Revenue that they have contacted the relevant administrator on this matter and the issue is being looked into by the administrator.
