Pension Board warns levy will erode private contributions

ANNUAL contributions by employers and employees to private pension schemes will be wiped out in many cases over the next four years to pay for the Government’s controversial pension levy, according to the Pensions Board.

Documents released to the Irish Examiner show the Pensions Board warned the Government that the pension levy to fund its jobs’ initiative would probably exceed the annual contributions made by members of already struggling defined-benefit schemes.

The 0.6% annual levy, which was announced by Finance Minister Michael Noonan last May, is expected to raise almost €1.9 billion over the next four years.