Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 87: To ask the Minister for Finance the saving to the Exchequer if relief on pension contributions was capped at €5,000 per person, at €10,000 per person and so on at intervals of €5,000 to a €50,000 cap [38429/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I assume that the Deputy has in mind that the caps on pension contributions for tax relief purposes indicated in the question should replace the existing restrictions which operate on the basis of an annual earnings cap of €150,000 and various age-related percentage limits.

On this basis the full year yields to the Exchequer arising from these changes are estimated as follows:-

It should be noted that, for the purpose of this costing, the caps apply to employee and personal contributions and not to employer contributions. No breakdown is available of employer contributions which would allow for such contributions to be associated with employee/personal contributions on a case-by-case basis.

Furthermore, a breakdown of the figures by reference to income levels is available only in respect of the tax relief for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) to the extent that these contributions are included in the personal tax returns of taxpayers.

With regard to occupational pensions (that is, schemes set up by the employer) the figures in respect of employee contributions are available only in aggregate form. Information on such contributions is not captured in such a way as to make it possible to associate contributions with individual income levels. For that reason the estimated yields to the Exchequer provided in respect of these contributions are extremely tentative.