Pensions cap ‘makes it harder to attract executives’

THE introduction of a pensions cap on high earners in the last budget will make it extremely difficult for firms to put attractive wage structures in place for key executives, PricewaterhouseCoopers (PwC) warned yesterday.

PwC said that companies would have to become very creative in finding ways to make up for the tax on pensions worth over €5 million to individuals.

The 2006 Finance Act introduced an additional tax on pension funds with a value of more than €5m (unless an individual receives certification from Revenue that a higher limit applies).