Brendan Burgess
Founder
- Messages
- 54,757
I suspect that these proposals reflect the government's plans to reduce the marginal rate of tax relief on pensions
I attach the relevant chapter, but here is the summary
STRAWMAN PROPOSALS
FINANCIAL INCENTIVES PROVIDED BY THE STATE
• The State will provide an incentive for people to participate in the AE system.
• Although both the value and the mechanism for providing this incentive will only be finalised following this consultation, the incentive is, for the purpose of this Strawman, presented as a contribution worth €1 for every €3 the employee contributes towards their retirement savings account.
• Where the employee makes contributions in excess of minimum requirements, the State may also make additional contributions subject to a maximum level of contributions of 2% of annualised salary.
• The State contributions will match employee contributions on a pro-rata basis subject to a cap – possibly linked to a defined annual earnings level such as the proposed €75,000 maximum earning threshold or an average annual earnings threshold as reported by the Central Statistics Office.
I attach the relevant chapter, but here is the summary
STRAWMAN PROPOSALS
FINANCIAL INCENTIVES PROVIDED BY THE STATE
• The State will provide an incentive for people to participate in the AE system.
• Although both the value and the mechanism for providing this incentive will only be finalised following this consultation, the incentive is, for the purpose of this Strawman, presented as a contribution worth €1 for every €3 the employee contributes towards their retirement savings account.
• Where the employee makes contributions in excess of minimum requirements, the State may also make additional contributions subject to a maximum level of contributions of 2% of annualised salary.
• The State contributions will match employee contributions on a pro-rata basis subject to a cap – possibly linked to a defined annual earnings level such as the proposed €75,000 maximum earning threshold or an average annual earnings threshold as reported by the Central Statistics Office.
