FollowThe full Recovery Plan document can be read on www.budget.gov.ie
Private Pensions
The main proposals that impact on private pension provision are:
• All lump sums in excess of €200K will be taxed, probably from Budget Day.
• In 2011 the Earnings Cap will be reduced from €150K to €115K.
• Next year will also see the abolition of PRSI & Health Levy relief linked to pension contributions.
• The Standard Fund Threshold will also be reduced, details in the Budget.
• The maximum rate of relief for personal pension contributions remains the same for 2011 at 41%, but the following reduced relief rates are proposed:
Year Rate
2012 34%
2013 27%
2014 20%
• There is no indication that the tax treatment of employer contributions will change.
• There is a very strong hint that the proposed auto enrolment scheme will never happen.
Good Financial Housekeeping – Helping to make your income go further
