Tuesday, 31 May 2011

Ceisteanna (85)

Finian McGrath


108 Deputy Finian McGrath asked the Minister for Finance his views on a matter regarding private pensions (details supplied). [13377/11]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Finance)

I note the concerns raised by the Deputy's constituent in the matter of the pension fund levy. From the details supplied, I also note that the individual concerned has already retired and is in receipt of a pension in payment. I am not in position to say, on the basis of the details provided, whether the person will be impacted at all by the levy and, if so, to what extent. As to the legal position regarding the levy, that would be a matter for the courts to decide on any issues put before them. I obtained legal advice in relation to the levy and the scheme being introduced has taken account of that advice.

The levy is a relatively small charge on the significant assets of pension funds much of which are represented by investments outside of Ireland. It is for a temporary 4 year period only and pension funds are being asked to make a contribution to getting the domestic economy moving again over that period. This is a reasonable and targeted tax measure being introduced to fund the various measures set out in the Jobs Initiative. The country is facing an economic and unemployment crisis and the Jobs Initiative will help tackle that crisis.