Outrage as private pensions raided to fund proposals

THERE was a tidal wave of outrage after the Government confirmed that it is part-funding the jobs initiative with a four-year levy on private pension savings that is backdated to January 1 this year.

The 0.6% levy has been established to raise €470 million a year. Over the four years that it is supposed to operate, it should raise €1.88 billion from the funds of private sector employees and pensioners. Public sector employees and non-residents will not be subject to the tax and neither will any funds that are already in wind-up before today.

Chief executive of the Irish Brokers Association, Ciarán Phelan described the levy as a “stealth tax imposed on the savings of ordinary people by politicians and civil servants who’ve ensured that their own pension benefits remain gold and diamond plated”.