New Levy on Private Pension Schemes

The government jobs initiative announced on May 10th is being funded by new levy  which will be applied to funded pension schemes and personal pension plans.
The levy will not be applied to pensions in the public sector.

The new Levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in Ireland. (Valued at 1 Jan 2011)

The Pension Levy will apply for a period of 4 years commencing in 2011 .

Personal Retirement Savings Accounts and retirement annuity contracts will also be hit.

Over its lifetime the levy will amount to a charge of 2.4 per cent of the value of pension funds.
The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members.