The national recovery plan contains a commitment to significant reform of pension tax relief. Today, I am abolishing employee PRSI and health levy relief on pension contributions. I am reducing the annual earnings cap for tax-relievable pension contributions. The portion of retirement lump sums above €200,000 will be subject to tax and the maximum allowable tax-relieved pension fund will be reduced. Employer PRSI relief on employee pension contributions is being reduced by 50% from 1 January next.

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