Public Service Pensions levy calculation?

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Karl Grabe

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How is the new PS pension levy calculated? X% of gross taken before or after tax is is applied?
 
Re: PS Pensions levy calculation?

3% of gross pay up to 15000, 6% on the next 5000 and 10% on the remainder.
The amount thus calculated is deductible in arriving at reckonable (taxable) pay.
I have an Excel file which I can email you if interested- send me a PM. I can't attach it to messages here.
 
Re: PS Pensions levy calculation?

While the PS levy of 1.4billion has been whittled down to 1.0billion after tax relief, are we certain that Lenihan has allowed for this deduction as he claims in reduced Paye receipts or is he just making it up as he goes along?
 
Making it up as they go along... I have a copy of a document from Revenues website which appears to have now been withdrawn, it breaks down how they intended to save 2B. The Pension Levy is clearly stated as saving 1.4B and the rest from the other savings. No mention of before or after tax is in it.
 
Sorry to hijack the original thread but you guys seem to know your stuff. Has anyone a link to a definitive answer as to whether or not the levy will be pasrt of a person's age-related limits for tax relief?
 
LDFerguson said:
Sorry to hijack the original thread but you guys seem to know your stuff. Has anyone a link to a definitive answer as to whether or not the levy will be pasrt of a person's age-related limits for tax relief?
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I doubt the know them selves. It is a "pension-related deduction which will apply to the total earning of all public servants." I doubt there are going to may PSs who (even with AVCS) are going to exceed their age band or the maximum pension contribution limit. So far the only semi official notification I have received about the Pension Levy is from Revenue, stating that it has nothing to do with them and the Dept of Finance are in charge of its implementation. They better get their fingers out soon, time is ticking….
 
Towger said:
I doubt the know them selves. It is a "pension-related deduction which will apply to the total earning of all public servants." I doubt there are going to may PSs who (even with AVCS) are going to exceed their age band or the maximum pension contribution limit. So far the only semi official notification I have received about the Pension Levy is from Revenue, stating that it has nothing to do with them and the Dept of Finance are in charge of its implementation. They better get their fingers out soon, time is ticking….
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Agreed, I doubt they know. I've looked for clarification in everything published so far but have found nothing, so have drawn it to the attention of my union as a technical issue which needs to be examined.

I'd hazard a guess it may affect more public servants than you thing - those who are buying back a few years under NSP or are making substantial AVCs. I come in under the radar, but I'm buying back less than five years - seven years or so, in my age bracket, would push someone over the limit. Likewise, someone who starts buying back more service at a later stage could easily find themselves over the limits.
 
SadBob said:
This calculator from the Department of Finace Website implies relief is given at the higher rate (should you be that lucky to earn enough!)
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That's not actually the issue - it's the maximum tax relief as a percentage as earnings, which is established under Revenue rules. It's as follows:
Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:
  • Under 30: 15%
  • 30 to 39: 20%
  • 40 to 49: 25%
  • 50 to 54: 30%
  • 55 to 59: 35%
  • 60 and over: 40%
Click to expand...
 
Is there any on-line calculator available to calculate how much this amounts to? The link to the calculator on the finance site seems to be gone?
 
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