Dáil Éireann Debate, Tuesday - 24 July 2018
181. Deputy Robert Troy asked the Minister for Finance his plans to reform the pension system to ensure that a greater number of pension plans are exempted from the pension levy; and if he will make a statement on the matter. [32730/18]
Amharc ar fhreagraThe Pension Scheme Levy was introduced in 2011. For the years 2011, 2012 and 2013 the rate was 0.60% of the 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%.
Under the legislation, the payment of the levy was treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, were entitled, where needed, to adjust current or prospective benefits payable under a scheme to take account of the levy. It was up to the trustees or insurer to decide whether, when and how the levy was passed on and to what extent this should take place, given the particular circumstances of the pension schemes for which they were responsible.
The legislation also included safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it would be applied in an equitable fashion across the different classes of scheme members that could include active, deferred and retired members. In no case could 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.
The Pension Scheme Levy has ceased since 2015.
