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Dublin: 7 °C Sunday 17 November, 2019

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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Emer McLysaght

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