1. Pension Fund Levy –
· The levy will not apply to pension funds
Q&A where the trustees have already passed a
resolution (before 10 May 2011) to wind-up
Q.1 What are the principal features of the the fund and where the employer sponsors are
proposed pension fund levy? insolvent and no longer in business.
Q.2 What pension products will be covered
by the Pension Fund levy?
· Legislative provision will have to be made to
Q.3 Why is the Government imposing this allow pension scheme trustees or
levy? administrators the option to adjust the benefits
Q.4 How will this affect my pension and will payable under pension schemes or plans.
it put an additional cost on employers?
Q.5 Are there any exclusions from the · The chargeable persons for the levy will be
pension fund levy? the trustees or other persons (including
QUESTIONS AND ANSWERS insurance companies) having the management
of the assets of the pension schemes or plans.
Q1. What are the principal features of the
proposed pension fund levy scheme? · The levy will be administered by the Revenue
Commissioners. The levy will be payable in
two tranches for each of the four years of its
· A stamp duty levy of 0.6% will be applied to operation, including 2011.
the market value of assets under management
in pension funds and pension plans approved
under Irish tax legislation (occupational Q.2 What pension products will be covered
pension schemes, Retirement Annuity by the Pension Fund levy?
Contracts and Personal Retirement Savings
Accounts).
· A stamp duty levy of 0.6% will be applied to
the market value of assets under management
· The value of theassets would be determined in pension funds and pension plans approved
as at 1 January 2011, or on the last date of the under Irish tax legislation (occupational
accounting period ending in the twelve months pension schemes, Retirement Annuity
preceding that date. Contracts and Personal Retirement Savings
Accounts).
· The scheme will operate for a period of 4
years (2011 to 2014) with a view to raising · Full details of the pension fund levy will be
yields of c. €470 million each year. included in the Finance (No. 2) Bill which is
being published on Thursday 19th May 2011.
· The levy will not apply to the assets of
pension funds in respect of the provision of
retirement benefits to non-resident members.

2. Q.3 Why is the Government introducing Q. 5 Are there any exclusions from the
this levy? pension fund levy?
· This is a reasonable and targeted tax measure The levy will not apply to the assets of pension
being introduced to fund the various measures funds in respect of the provision of retirement
set out in the Jobs Initiative. The country is benefits to non-resident members.
facing an economic and unemployment crisis
and the Jobs Initiative will help tackle that
crisis. · The levy will not apply to pension funds that
have already passed a resolution (before 10
May 2011) to wind-up a pension scheme and
· The levy is a relatively small charge on the where the employer sponsors are insolvent and
significant assets of pension funds much of no longer in business.
which are represented by investments outside
of Ireland.
This newsletter should not be construed as advice,
and all sentiments expressed herein are an
· The levy is for a temporary period only and expression of opinion at this point in time. All
pension funds are being asked to make a performance data is given in good faith and is not a
guide to future performance. Investment returns
contribution to encourage economic growth in cannot be guaranteed and investments can fall as
that period. well as rise. Meritus Wealth Management Ltd is
regulated by the Central Bank Of Ireland as an
Authorised Advisor and as a Mortgage
Intermediary.
Q.4 How will this affect my pension and will Directors Gerard M Quinn, Shane A O’Connor,
it put an additional cost on employers? Cian J Mahony.
· How the pension fund levy will affect
individual pensions will be a matter for
individual pension scheme trustees and
administrators.
· It is up to the trustees and administrators to
decide whether and how the levy should be
passed on and who should be impacted and to
what extent, given the particular circumstances
of the pension funds or pension plans for
which they are responsible.
· How the pension fund levy will be paid will
be a matter for individual pension scheme
trustees and administrators. It is open to the
pensions industry to decide how and whether
to pass on the levy.