Dáil Éireann Debate, Tuesday - 27 March 2018
100. Deputy Clare Daly asked the Minister for Finance if his Department has undertaken a review of the quantum of the reduction in pension benefits payable to persons in the private and commercial sector as a result of the pension levy that was introduced in 2011 since that levy was introduced; and if he will make a statement on the matter. [13635/18]
Amharc ar fhreagraI take it the Deputy is referring to the stamp duty levies applying to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which are the trustees of pension schemes and others responsible for the management of pension fund assets.
Under the legislation, the payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees or insurer to decide whether, when and how the levy should be passed on and to what extent, given the particular circumstances of the pension schemes for which they are responsible. The legislation also includes safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it must be applied in an equitable fashion across the different classes of scheme members that could include active, deferred and retired members. In no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy. Where pension scheme trustees or an insurer took the decision to treat the levy as an expense of the pension scheme, they would have adjusted current or prospective benefits payable to members under that scheme. The consequence of this treatment by the trustees or insurer could be a permanent reduction in members' benefits.
A review of the quantum of the reduction in pension benefits payable to persons in the private and commercial sector as a result of the stamp duty levy on pension schemes has not been undertaken by my Department.
