Dáil Éireann Debate, Tuesday - 13 June 2023
343. Deputy Michael Healy-Rae asked the Minister for Finance when private pension holders will be compensated and have levies stopped on their pensions (details supplied); and if he will make a statement on the matter. [27123/23]
View answerI assume the Deputy is referring to the levy which was charged on pension schemes from 2011 to 2015 in accordance with section 125B of the Stamp Duties Consolidation Act 1999.
The levy was introduced in the wake of the financial crash, at a time when the economy was in very serious difficulties. It was charged on the market value of assets in pension schemes held on 30 June in each year at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015). Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets.
It is important to note that this levy was discontinued from 2016.
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 were responsible. I have no detailed information on the decisions made by pension fund trustees or others in relation to the passing on of the full or a partial impact of the levy to the current, deferred or former (retired) members of pension schemes.
I am aware, however, that where trustees have made the decision to pass on the impact or part of the impact of the levy to pensioners that a smaller reduction in pension payments over the lifetime of the pension may have been made in many cases in preference to a larger reduction over a shorter period.
