Pension Levy on Pension Payments ?

W

wiva

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Can anyone tell if and why public service staff taking early retirement under the ISER or CNR schemes have to pay the pension levy on pension payments following retirement ?

If this is the case, do the same rates apply and on what income figure are they based (pre or post retirement) ? I know this seems a bit naive but I can't find any information on this aspect of the levy.
 
Re: Pension Levy on Pension Payments ??

No, they dont have to pay the Pension Levy. Just the Income Levy, 2% in most cases, and maybe Income Tax.
 
Thanks Tentman.
My query arises from a recent public service (voluntary body), retiree who receives pension payment with pension levy deduction. Is there any official source for information you can recommend?
 
No, I'm afraid. Just checked with a colleague who retired at end of October, and she has no pension deduction, only Income Levy at 2% and a small bit of Income Tax.
 
Thanks Tentman.
My query arises from a recent public service (voluntary body), retiree who receives pension payment with pension levy deduction. Is there any official source for information you can recommend?


Common sense would suggest that there's no logic to being charged a pension levy on one's pension!


Section 2 of the Act defines who should pay the levy.

[I'm not allowed to post up the url for the act, so what follows has had the w w w . bit removed!:-

oireachtas.ie/documents/bills28/bills/2009/0509/b0509d.pdf

So, unless s/he comes within the terms of that Section then s/he isn't liable for the deduction.

It appears to me that his former employers are just plain wrong to be deducting it!
 
Tentman & Shirazman,
Thanks for your advice - I hope it was a reasonable level of common sense that prompted my question in the first place and I'm glad that there is some question about the legality of the deductions being made to the pay of my retiree friend.
 
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