Tax relief on pension levy

J

jamjam090

Guest
Hey folks
Is there tax relief on the pension levy? similar to private sector?
Dermot Ahern apparently mentioned there was on Prime Time, but my understanding is theres not.
As a public servant, I accept a need for some type of reform of public sector pensions outside of the current fiscal crisis. However this levy is poorly concieved, and will have the exact same effect as a 10% paycut on on my net pay, but will never go away. I would have much rather a 10% paycut.
Rant over, roll on FG/ Lab government.
 
Good question; I doubt there is though - the amount you're paying is much smaller than the amount you'd have pay in a private pension for the same benefits, - thats if you could even find a pension company willing to provide a defined benefit scheme.
FYI - using fairly conservative returns (which have since turned out to be much too liberal) I calculated that to get a pension of €30k when I retire, I'll have to pay in €20k every year (from the age of 30, retiring at 65).
 
yES, there is tax relief on the new "pensions" levy, same as current 6.5% pension contribution.
 
Would it fairer to say that there is implied tax relief on the amount as its deducted from gross pay, so will have the effect of reducing tax paid on the higher rate. However as public servants are not paying into a defined pot as it were, there is no effective tax relief.
 
Will the tax relief for public sector pensions levy be capped at a salary level of €150K as is the case in the private sector?
 
jamjam090 said:
Would it fairer to say that there is implied tax relief on the amount as its deducted from gross pay, so will have the effect of reducing tax paid on the higher rate. However as public servants are not paying into a defined pot as it were, there is no effective tax relief.
Click to expand...

But sure what you describe is tax relief?
 
You must log in or register to reply here.
Back
Top