Duncan Smith
Question:415. Deputy Duncan Smith asked the Minister for Finance if a person is liable to pay the pension levy on a private pension; and if he will make a statement on the matter. [44014/22]
View answerThursday, 8 September 2022
Questions (415)
Written answers
It is unclear from the Deputy’s question whether he is referring to the additional superannuation contribution (ASC) or to the pension levy.
The Pension Levy on Private Funds was introduced in the wake of the financial crash and at a time when the economy was in serious difficulties. The intent of the levy was to raise revenue in respect of the generous tax reliefs that those contributing to pension arrangements had benefited from over many years.
The levy on pension funds was provided for in section 125B of the Stamp Duties Consolidation Act 1999 (as inserted by section 4 of "the 2011 Finance (No. 2) Act"). For the years 2011, 2012 and 2013, the rate was 0.60% of the pension 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%. The legislation made no provision for exemption of a particular pension fund.
Under the legislation, the payment of the levy was treated as a necessary expense of a pension scheme and it was a matter for the trustees or insurers to decide when and how the levy should be passed on to scheme members and to what extent, given the particular circumstances of the pension schemes for which they are responsible.
The Deputy may be thinking of the current additional superannuation contribution (ASC) and the previous pension related deduction (PRD), but neither of those charges is applied to private pensions. The ASC is payable by public servants from their pensionable pay in accordance with Part 4 of the Public Service Pay and Pensions Act 2017 with effect from 1 January 2019. The ASC replaced the PRD which was deducted from the remuneration of public servants under the Financial Emergency Measures in the Public Interest Act 2009 (as amended).
Question No. 416 answered with Question No. 327.