The Pension Levy, June 2011


The Finance (No. 2) Act (the “Act”) was signed into law on 22 June 2011 and introduces a four-year annual levy on private pension funds.

The Government aims to raise approximately €470 million each year as part of its Jobs Initiative from a 0.6% levy on the assets of occupational pension schemes, Retirement Annuity Contracts and Personal Retirements Savings Accounts (except where under the RAC/PRSA the retirement lump sum has been paid and the annuity purchase deferred in which case the levy does not apply).

The levy does not affect assets in insured annuities in payment, Approved Retirement Funds (ARFs) and Approved Minimum Retirement Funds (AMRFs) as they are not pension schemes for the purposes of the Act.

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