Dáil Éireann Debate, Wednesday - 24 March 2021
431. Deputy Catherine Connolly asked the Minister for Finance the reason the stamp duty levy on privately funded pension schemes introduced as a temporary measure in 2011 is still being levied on IASS pensioners particularly in view of the deep cuts in their pensions that these pensioners suffered following the revision of pensions legislation in 2013 and 2014; and if he will make a statement on the matter. [14092/21]
View answerI take it the Deputy is referring to the stamp duty levies that applied to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which were the trustees of pension schemes and others responsible for the management of pension fund assets.
At the outset, it is important to note that this levy ceased in 2015.
However, under the relevant legislation (section 125B of the Stamp Duties Consolidation Act 1999), the payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are able, where needed, to adjust the 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. The legislation also includes safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it has to be applied in an equitable fashion across the different classes of scheme member that could include active, deferred and retired members. In no cases 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.
