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 Post subject: .6% levy on Private Pensions
PostPosted: Tue Apr 26, 2011 3:13 pm 
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Of Systemic Importance

Joined: Dec 28, 2006
Posts: 5579
Hi,
there is a reference in this report about a .5% levy on private pensions. what's that all about.

http://www.thejournal.ie/details-of-job ... 7-Apr2011/

With pension funds struggling to grow by even a steady 3% year on year does this not just consign pensions to a near zero % growth level going forward.

"Pension fund" was mentioned not "Pension contribution".

As Pension funds can't be transferred overseas how would one avoid the pension fund levy? bite the bullet and realise the pension on the first day you can draw it down e.g. 50 or 55 years old rather than waiting until you hit 65 or 67.


Last edited by What Goes Up... on Tue May 10, 2011 7:04 pm, edited 1 time in total.
Updated %


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Tue Apr 26, 2011 3:29 pm 
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Back Home with Mammy

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Posts: 53
From what i've heard the scheme doesn't have to be in profit to be charged the levy. It is supposed to be applied on the value of the whole fund regardless...


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Tue Apr 26, 2011 3:30 pm 
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Nationalised

Joined: Oct 29, 2007
Posts: 11701
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Think its time to transfer your pension somewhere safer... like Argentina !


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Tue Apr 26, 2011 3:39 pm 
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Location: London, innit
AFAIk it's already in place and it's 1% when you put the money in.

Unless this is something new :shock:

[edit] here:

http://www.independent.ie/business/iris ... 32540.html


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Tue Apr 26, 2011 3:52 pm 
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Under CAB Investigation

Joined: Jan 25, 2007
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slasher wrote:
AFAIk it's already in place and it's 1% when you put the money in.

Unless this is something new :shock:
l

something new 8-


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 12:18 pm 
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Back Home with Mammy

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Due to be a discussion about this on the news at one today. Looks like it's definitely going ahead and only the private sector being targeted....


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 12:33 pm 
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Planning Tribunal Attendee

Joined: Nov 7, 2008
Posts: 1317
NoHouse wrote:
Due to be a discussion about this on the news at one today. Looks like it's definitely going ahead and only the private sector being targeted....


For now, according to an article in the Financial Times, under the terms of the Portuguese bail-out public sector pay and pensions are to be frozen until 2013 and a "special tax" introduced on pensions above €1,500 per month. Only a matter of time before similar measures are applied here.

This is not the GO signal for Public/Private circular argument leading to thread de-railment.

http://www.google.ie/#sclient=psy&hl=en ... 6d6c55dbdb


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:16 pm 
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Of Systemic Importance

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Public sector workers already pay a 7% levy to provide for their pensions.

A levy on private sector pensions was inevitable. If you can afford to fund your pension, you can afford the levy. Those with the means to pay for the deficit should pay most.


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:18 pm 
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Planning Tribunal Attendee

Joined: Nov 7, 2008
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XX


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:20 pm 
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Joined: Feb 10, 2009
Posts: 402
goldmanberg wrote:
XX


I know I'm not adding much to the debate here either, but, +1


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:27 pm 
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Posts: 4764
HouseBuyer wrote:
Public sector workers already pay a 7% levy to provide for their pensions.

A levy on private sector pensions was inevitable. If you can afford to fund your pension, you can afford the levy. Those with the means to pay for the deficit should pay most.


Dude, can you explain something to me?

I pay X% of my salary into a private pension to provide for my pension. I can't remember exactly how much it is because you know courtesy of underfunding and a few AVCs to ensure I was fully funded at the age of retirement it's gone up quite a significant bit in the last few years. This at a time when my primary salary has also gone down and my tax has gone up quite a lot.

You tell me Public sector workers pay a pension levy to provide for their pensions. Where is the difference between their pension levy and my pension contribution?

Does any mandarin in DoF realise that I'm looking at all this and wondering why I should bother providing for a pension at this stage? I'll be working until I'm 68 at least, and 70 probably. Given the utter stress involved in trying to modern life I'll probably be dead of a heart attack before hand.

What is the point here? The idea is to encourage people to provide for their aging days. It seems to me that policies of this nature make me think I'd be better off dead before I have to retire.


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:29 pm 
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Location: London, innit
spudnick wrote:
goldmanberg wrote:
XX


I know I'm not adding much to the debate here either, but, +1



I've a chunk in a self directed pension cash deposit that doesn't pay much; take out the 1% "Management Charge" ( yes - even for a Cash account...) and the 0.5% Govt charge and I'm almost going backwards


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:36 pm 
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Speculator

Joined: Dec 23, 2008
Posts: 499
HouseBuyer wrote:
Public sector workers already pay a 7% levy to provide for their pensions.

A levy on private sector pensions was inevitable. If you can afford to fund your pension, you can afford the levy. Those with the means to pay for the deficit should pay most.


on the face of it, utter bilge.

Lots of private sector people who can "afford pension contributions" as you put it are little people who are putting 100 a month or less into a prsa and hoping it amounts to something. I am one of them and will probably not bother putting in any more and just write the whole damn mess off.

I fund my pension such as it is fully myself - would love if I had to pay just 7 per cent and be guaranteed a defined benefit. why should I pay another levy again? It has nothing to do with the cost of providing for my pension, the state doesnt pay a penny into my fund. By all means abolish the income tax deductions, if that is a state subsidy the state cannot afford any more.

But am not looking to go into PS bashing on this thread, I actually have sympathy for the younger Irish Ps workers who will pay 7 per cent and get a lot less than they think when the time comes.

the bottom line is that pensions are easily stolen to pay for the bank debt, easier than depsoits; so pensions will be stolen over the next while in various guises, and the cupboard will be bare when the time comes....Ir gov bonds, a great return, we know shurra there will never be a default!!!!!


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:47 pm 
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Posts: 1778
slasher wrote:
I've a chunk in a self directed pension cash deposit that doesn't pay much; take out the 1% "Management Charge" ( yes - even for a Cash account...) and the 0.5% Govt charge and I'm almost going backwards

Then there is the government levy on premiums going into the fund and any commission amount due to the agent/pension provider...


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 Post subject: Re: .5% levy on Private Pensions
PostPosted: Thu May 05, 2011 1:48 pm 
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Of Systemic Importance

Joined: Feb 8, 2007
Posts: 5165
Calina wrote:
What is the point here? The idea is to encourage people to provide for their aging days. It seems to me that policies of this nature make me think I'd be better off dead before I have to retire.

Did you vote Fine Gael? This proposal was in their manifesto.

Look folks, there's no point cribbing and moaning about something that you 80% of the population voted for. We have all effectively signed up to the social contract. That those with the means to pay for the banking crisis and our IMF/EU loan, will pay most.


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