Call for pension proposal U-turn

Michael Noonan has been urged to do a U-turn on his pension proposals in next month’s Finance Bill; with proposed pension levy changes being slammed as unjustified and a potential deterrent to people saving for retirement.

Contributions made to pension schemes will continue to attract income tax relief at the marginal rate of tax.

However, the 0.6% levy introduced to fund job creation two years ago — set to be dropped at the end of 2014 — will effectively be increased to 0.75% next year, via the introduction of a new levy of 0.15% covering pension funds in both 2014 and 2015. In the latter year, it will drop to 0.15%. Whether it remains at that level is open to question.