Dáil Éireann Debate, Tuesday - 24 October 2023
209. Deputy Emer Higgins asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the year in which a person who worked in a semi-State company and took early retirement in 2010, should have ceased paying the pension levy. [46153/23]
View answerThe Minister for Finance introduced the levy on pension funds, as provided for in section 125B of the Stamp Duties Consolidation Act 1999 and 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.
Depending on the semi state body in question the levy may have been implemented by trustees in a manner that resulted in a smaller reduction in pension payments over the lifetime of the pension, in preference to a larger reduction over a shorter period. Other schemes may have seen annual pension increases suspended for a period of time to recoup the costs associated with the levy.
Any questions regarding the application of the pension levy for a particular semi state body should be directed to the parent Department in the first instance who can provide information on how the levy was applied to semi state body pension schemes under their aegis.
