Dáil Éireann Debate, Tuesday - 28 July 2020
250. Deputy Pearse Doherty asked the Minister for Finance the estimated full-year revenue in 2021 that would be raised by reducing the ceiling earnings cap for occupational pension schemes, RACs and PRSAs from €115,000 to €90,000, €80,000, €70,000 and €60,000, respectively. [18760/20]
Amharc ar fhreagra251. Deputy Pearse Doherty asked the Minister for Finance the estimated full-year revenue in 2021 that would be raised by reducing the standard fund threshold from €2 million to €1.7 million, €1.5million and €1.2 million, respectively. [18761/20]
Amharc ar fhreagraI propose to take Questions Nos. 250 and 251 together.
The estimated full year yield for each of the proposed decreases in the ceiling for occupational pension schemes, RACs and PRSAs can be found on page 11 of the Revenue Ready Reckoner, published at the link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.
They are also shown in the below table:
|
Annual Earnings Cap for Pensions Contributions |
Full Year Yield €m |
|
€90,000 |
59 |
|
€80,000 |
90 |
|
€70,000 |
125 |
|
€60,000 |
166 |
In relation to the Deputy's question on the Standard Fund Threshold (SFT), the SFT is the maximum allowable pension fund on retirement for tax purposes, which was introduced in Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million but was subsequently reduced to €2.3 million with effect from 7 December 2010 and further reduced to €2 million with effect from 1 January 2014.
Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, there is no readily available underlying data or methodology on which to base reliable estimates of any possible yield which might be realised from the reductions in the Standard Fund Threshold outlined by the Deputy.
