How is PRSA contribution % affected by Pension Levy?

S

Slim

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If I am entitled to pay a max. of 25% into approved pension schemes, how is that affected by the new Pension Levy of say, 8.3%? My occupational contribution totals 6.5%.

Slim
 
Slim,
On the basis that the new "Pension Levy" is tax deductible, I have to assume that it gets included in the max % contribution figure. So if your new total Public Service contrinution is 14.8% anf you limit is 25% (based on your age) then your max additional contribution (AVC) will be 10.2%.
 
The implication of this is that any public servants who have been making AVCs up to or near their maximum limits for tax relief will now have to reduce their AVCs.

I thought the Government were trying to encourage people to make provisions for their pension? :rolleyes:
 
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