Sinn Féin Budget reducing the SFT to €1.5M

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Flybytheseat

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Today's alternative budget from our potential next governing party strongly advocates for a reduction in the Standard Fund Threshold for pensions from the current €2M (effective €2.15M) to just €1.5M.

Should anyone close to the €1.5M threshold stop all pension contributions now ? Seems prudent as government meddling is probably the biggest unquantifiable risk to medium and long term pension savings.
 
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Flybytheseat said:
Today's alternative budget from our potential next governing party strongly advocates for a reduction in the Standard Fund Threshold for Pensions to be reduced from the current €2M (effective €2.15M) to just €1.5M.

Should anyone close to the €1.5M threshold stop all pension contributions now ? Seems prudent as government meddling is probably the biggest unquantifiable risk to medium and long term pension savings.
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Why do that when it may never come to pass?
 
am I correct in saying this has no impact on public sector workers who have in effect achieved same through DB scheme?

One rule for private sector and another public.
 
FintanJ said:
am I correct in saying this has no impact on public sector workers who have in effect achieved same through DB scheme?

One rule for private sector and another public.
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No.
Potentially higher paid public and civil servants who are members of the old DB scheme could be hit with this change.
Based on the Revenue multiple used for DB schemes (c 24:1 depending on exact DB benefit)
€1.5m might equate to a gross pension of c€62,000(a good pension but hardly a fortune).
It's just more populism from SF portraying them as attacking the "wealthy".
 
Any time there's been a reduction in the SFT, people with funds over the limit have been able to apply to revenue for personal fund thresholds. Whatever the fund is worth on the date of the change (assuming it's under the threshold that was previously on force) becomes their personal threshold.
 
Flybytheseat said:
Today's alternative budget from our potential next governing party strongly advocates for a reduction in the Standard Fund Threshold for pensions from the current €2M (effective €2.15M) to just €1.5
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Does it?

I’ve read their proposed alternative budget document and can’t see anything that specific.

Apologies if I missed it but could you give us a page/paragraph reference?
 
Sarenco said:
Does it?

I’ve read their proposed alternative budget document and can’t see anything that specific.

Apologies if I missed it but could you give us a page/paragraph reference?
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Same.

It was there in the past, but there’s just a generic reference in this year’s document to ‘ending gold plated pensions’.

I don’t really get the point of the proposed increase in the Dividend Withholding Tax rate to 33%. It just creates admin for companies and for people to either top-up their tax payment or to get a refund of the tax.

Not much to cheer about in the Gekko household though. €520 extra per year in Child Benefit for the three monkeys on the plus side, devastating changes on the other.
 
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Gordon Gekko said:
Same.

It was there in the past, but there’s just a generic reference in this year’s document to ‘ending gold plated pensions’.

I don’t really get the point of the proposed increase in the Dividend Withholding Tax rate to 33%. It just creates admin for companies and for people to either top-up their tax payment or to get a refund of the tax.

Not much to cheer about in the Gekko household though. €520 extra per year in Child Benefit for the three monkeys on the plus side, devastating changes on the other.
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Do they know that the gold plated pensions are the ones that they get? And that all the public servants who will work under their government get?

As you said earlier, I can't see it coming to pass. If they get into government, it will be with FF and there will have to be concessions. It's not as if the Northern Assembly (when it gets to sit) is radically socialist.
 
IF the Shinners get in, they will very quickly realise that it is very easy to be a hurler on the ditch but a VERY different matter when you actually have to play the game.

An awful lot of their pie in the sky magic money tree economic proposals will be out the window when they have to balance budgets and manage competing resources.

I, for one, will look on with great glee when the hordes realise that they were a crowd of populist spoofers all along.
 
If anything the SFT should be increased along with the €115,000 earning limit. Just makes sense to have people with larger pension pots. The State receives income tax & USC (In some cases) as the individual withdraws the funds and on death the pot is hit with a 30% charge.
 
MTB_FS said:
If anything the SFT should be increased along with the €115,000 earning limit. Just makes sense to have people with larger pension pots. The State receives income tax & USC (In some cases) as the individual withdraws the funds and on death the pot is hit with a 30% charge.
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Agree - both haven't been adjusted in many years despite general and wage inflation. €115K today is not comparable to €115K five or more years ago.
 
... and what's a "gold-plated pension" anyway, and why is it a bad thing?
(Unless its funded by tax-payers, who cares what level of pension someone has?)
 
redstar said:
... and what's a "gold-plated pension" anyway, and why is it a bad thing?
(Unless its funded by tax-payers, who cares what level of pension someone has?)
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The tax payer has an interest if the alternative would be the individual having paid full income Tax, PRSI and USC on income that would otherwise gone into pensions above the so-called gold plated pension threshold.
 
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