The following is a summary of the positions taken by each of the Life Offices in respect of the 'new' 1% Levy on Protection/Pension/Investment/Savings policies, as at 30/07/2009.
Standard Life
Will not deduct the levy from any of their policyholders’ premiums invested during August and September 2009. This applies to all their products for new and existing business, regular and single premiums. They will not retrospectively deduct the levy from policyholders’ premiums invested during August and September 2009. This means that Standard Life will absorb the full cost of the levy for premiums invested during August and September 2009. During August and September they will be monitoring the market situation very closely and will advise of their position from 1October 2009 onwards.
Eagle Star Zurich
Will be collecting the 1% premium levy from 1st August 2009 on all protection and group risk policies.
For new ( Self-employed Pensions(RACs),PRSAs, ARFs, Annuities, Personal Buy-Out-Bonds, Investment and Savings contracts) business transacted after 1st of August, they will meet the cost of the 1% premium levy for premiums paid in August on any new business (including single premium top-ups) that are introduced before 1st September. They will not make any retrospective charge for such payments regardless of how the IIF proposals are received. They will review the situation in the coming weeks and will advise if this interim approach is to continue for September.
For existing ( Self-employed Pensions, PRSAs and Savings) business they intend to defer applying the 1% premium levy on these contracts pending the conclusion of discussions with the Department of Finance. Given the uncertainty as to what changes to the levy might be made as a result of these discussions, they reserve the right to deduct outstanding levies from the contracts when and if it is appropriate to do so.
Quinn Life
With effect from 1st August 2009, an Insurance Levy of 1% will be applied to premium allocated to QUINN-life pensions, investments, savings and approved retirement funds.
Caledonian Life
If a client has a Regular Premium protection policy (for example payable monthly or annually) their payment will increase by 1% from 1st August. If a client makes their payment by direct debit their payment will increase automatically. If a client makes their payment by other methods, Caledonian Life we will notify them of the increased payment in their next renewal notice.
The levy does not apply to existing Single Premium Investments. However, the levy will apply to all top-ups to existing policies and all new policies taken out from 1st August. 1% of any single premium received by us from 1st August will be deducted for the levy and paid to Revenue.
Irish Life
Irish Life will apply the 1% levy to all protection policies from 1st August. This means that they will collect an additional 1% from protection policies with effect from 1st August.
They will defer applying the levy on pension, investment and savings policies pending the conclusion of discussions with the Department of Finance on an alternative arrangement.
Irish Life has proposed to advance a payment to the Revenue Commissioners equivalent to the value of 1% of premium on these products while these discussions are ongoing. If the discussions are unsuccessful, and an alternative route cannot be found, they will have no option other than to apply the 1% levy on all products from that point forwards.
Hibernian Aviva
Hibernian Aviva will apply the levy on all protection policies from August 1.
Pending the outcome of industry discussions with the Department of Finance, Hibernian Aviva will not apply the 1% levy to pension and investment products while the discussions with the Department continue. Hibernian Aviva will review this position when they have greater clarity.
Hibernian Aviva will not apply the 1% levy retrospectively to premiums for pension and investment business received during this period. Therefore, we will not be going back to customers to apply the levy to pension or investment premiums already paid.
Friends First
For Executive Pension, Group Defined Benefit and Defined Contribution Schemes no levy will apply.
For Individual Protection, Group Protection and PRSA type contracts; pending outcome from Revenue, the Levy will only be collected from 1st January 2010
For Single Premium Pensions, Investments, ARFs and Buy-Out-Bonds; pending outcome from Revenue, the Levy will only be collected from clarification date. There will be no retrospective collection.
For Regular Premium Pensions, Savings and Life Insurance; pending the outcome from Revenue the Levy will be collected retrospectively to 1st August 2009.
New Ireland
Will collect the additional 1% of the premium from customers on the following policies with effect from 1st of August: life cover policies,mortgage protection policies and policies which pay an amount on a specified illness or on disability.
They are deferring collecting the levy for investment and pension customers pending the outcome of discussions with the Department of Finance.
Canada Life
Protection Business - The levy will be applied with effect from 1st August 2009
New Pension & Investment Business - The levy will not be applied to new business pending the outcome of discussions with the Department of Finance or the Budget announcement if earlier. If the levy remains it will only be collected from this date forward. There will be no retrospective collection.
Existing Pension & Investment Business - The levy will not be applied to existing business pending the outcome of discussions with the Department of Finance or the Budget announcement if earlier. Canada Life reserves the right to deduct outstanding levies in arrears.
NB : Some types of group pension schemes are exempt from the Levy.