The alternative approach is to cap the funds at approximately €1.5 million and cap the contribution at somewhere between €40,000 and €50,000 - I will not nominate an exact figure - then continue with the tax relief and put a temporary levy on the fund. If a temporary levy is put on the fund for the duration of the plan, there is a very significant yield but actuaries will not take it into account when calculating the actual value of the fund because it is temporary. If one considers the literature produced by those companies like Zurich or Irish Life & Permanent, which are very strong in the market, this is the formula they are opting for. It is very easy to collect the levy because the pension industry is collecting management fees already, and all it has to do is to collect the 0.5% of the levy on top of the management fee and send it to Revenue.

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