Thomas Gould
Question:119. Deputy Thomas Gould asked the Minister for Finance when the pension levy will be abolished for ESB pensions. [8557/24]
View answerThursday, 22 February 2024
Questions (119)
Written answers
As the Deputy is aware the pension fund levy was introduced in the wake of the financial crises, 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). It is important to note that this levy was discontinued from 2016.
Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets. 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 any 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. Therefore I am not in a position, nor is it within my remit, to comment on the specifics relating to the application of the pension levy to ESB pensions.
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 and this may be the case for this pension fund.