Finian McGrath (Dublin North Central, Independent)
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Question 72: To ask the Minister for Finance if he will support a matter (details supplied). [35462/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy refers to proposed cuts to pension tax reliefs but without specific details on the nature of the cuts he has in mind.

In Budget 2009, I announced a significant reduction in the annual earnings limit for tax relieved pension contributions from €275,000 to €150,000. This reduced limit will apply for 2009. The annual earnings cap acts, in conjunction with age-related percentage limits, to determine the value of pension contributions on which an individual taxpayer will get tax relief at his/her marginal income tax rate in any year.

The reduction in the annual earnings cap to €150,000 next year will result in a significant fall in the maximum value of tax relief that high earners can obtain on contributions to private pension provision. This change was made to promote greater equity in this area.