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Dublin: 3 °C Saturday 25 May, 2013

Pension levy is a tax on those who have prepared for the future, says IBEC

The employers’ group says pension and benefit schemes are in serious danger and is urging the government to reconsider the pension levy. The levy forms part of the government jobs initiative.

THE EMPLOYERS’ GROUP IBEC says the government is punishing those who decided to save for the future, by placing a levy on private pensions.

The group is warning that the levy will lead to the end of some pension schemes and benefits for employees, reports RTE.

The move was announced by the Finance Minister Michael Noonan last week, as part of a jobs initiative scheme which will see the government strive to raise almost €2 billion in the next four years.

While IBEC is welcoming the jobs initiative, its Director General Danny McCoy says that “many pension funds are already in serious difficulty and the levy has the potential to make matters worse”. He says it’s “likely to herald the reduction of benefit levels to scheme members and the closure of some defined benefit plans”.

Director of Industrial Relations Brendan McGinty is adding that the levy is acting as a tax on those who thought ahead and saved for their pensions.

Read more: IBEC warns against pension proposals>

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Comments (20 Comments)

  • toast 17/05/11 #

    How can you support this madness ?

    I and many others will stop contributing towards pensions – hence no work for person in pension brokers office – I do not like the idea of them taking .6% year after year like piranhas coming back to a defenseless corpse – since a pension is supposed to compound the effect of this is to remove far more value than .6% of the end value. ‘Temporary levies’ are bullshit – there is nothing temporary about them – once people get used to them they remain in place.

    I looked at dissolving my pension – it is not possible to take any money out of your pension once you have been paying into it for more than two years – I would prefer to keep it under my mattress or gamble it away, anything to avoid this dirty grab

    read these letters: http://www.irishtimes.com/newspaper/letters/2011/0512/1224296751103.html

    Reply
  • toast 17/05/11 #

    you really are going to great trouble for someone who couldn’t care less

    Reply
  • toast 17/05/11 #

    @jimbob

    “A new supplementary pension scheme will be introduced to provide additional retirement income for employees who are not already in a pension scheme. Employees earning above a certain income threshold will be automatically enrolled in this new scheme, and the State and employer will support this by providing matching contributions”

    http://www.cardi.ie/news/newautoenrolmentpensionschemetobeintroducedfrom2014

    Reply
  • toast 17/05/11 #

    what a depressing comment – seems you are ok with losing it all then. Not me – I manage my own and it is in the black for the period 2006-2011

    how did the job creation initiative go at FAS?

    the government complains that not enough people have pensions, then they force people to open one, then they force people to hand it over

    I really hope this move turns out to be illegal – as one of the letters says the next stop is your deposit account

    Reply
  • toast 17/05/11 #

    How can you support this madness ?

    I and many others will stop contributing towards pensions – hence no work for person in pension brokers office – I do not like the idea of them taking .6% year after year like piranhas coming back to a defenseless corpse – since a pension is supposed to compound the effect of this is to remove far more value than .6% of the end value. ‘Temporary levies’ are bullshit – there is nothing temporary about them – once people get used to them they remain in place.

    I looked at dissolving my pension – it is not possible to take any money out of your pension once you have been paying into it for more than two years – I would prefer to keep it under my mattress or gamble it away, anything to avoid this dirty grab

    read these letter: http://www.irishtimes.com/newspaper/letters/2011/0512/1224296751103.html

    Reply
    • I didn’t say I supported this. I feel completely indifferent to it. I don’t have a pension, I couldn’t care less about it. A pension is an investment and like all investments it comes with a risk. People should realise that. If you want to be guaranteed an income when you retire then put away money in a non risky way, like burying a box of gold in the forest; or buy some oil, prices are only going to rise.

      Reply
    • @ Jimbob Hillbill – if you are indifferent to the whole situation and you have no pension yourself, why are you even commenting on this post?
      If you have no interest then go away and stop telling people how they should feel and how awesome you are for not having a pension!
      This affects a lot of people and your smart arse comments are not appreciated.
      Maybe you should only post comments on articles that interest you – you might so have a more intelligent comment to make.

      Reply
    • There are two aspects to this story, the levy and the jobs initiative. The levy may not effect me, but the jobs initiative is a different matter entirely. I never told anybody how to feel or that I was awesome because I don’t have a pension.

      You making up things about me isn’t appreciated either.

      Reply
  • I object to the principle of the levy but we need to get real. The fluctuations of the equity Market has a more greater impact than this 0.6% levy. The 9/11 attack reduced my pension fund by more than 30%. it is important to remember that putting money into a pension fund is a huge gamble.

    Reply
  • toast 17/05/11 #

    destroy jobs to create jobs – irish logic

    Reply
  • jimbob is talking scutter

    Reply
  • Jimbob = troll

    Reply

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