Written answers
Wednesday, 10 November 2010
Department of Finance
Pension Provisions
9:00 pm
Róisín Shortall (Dublin North West, Labour)
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Question 148: To ask the Minister for Finance the estimated saving for the Exchequer in each of the scenarios where public service pensions were capped at €100,000 and at values higher than this at intervals of €10,000 [42005/10]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is estimated that the imposition of caps on pensions in the civil service would give rise to the following savings: A cap of €100,000 would yield a saving of €1.34 million.
A cap of €110,000 would yield a saving of €0.59 million.
A cap of €120,000 would yield a saving of €0.25 million.
A cap of €130,000 would yield a saving of €0.05 million.
A cap of €140,000 would yield a saving of €0.01 million.
Comparable data are not available for the public service as a whole.
Róisín Shortall (Dublin North West, Labour)
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Question 149: To ask the Minister for Finance if, in respect of Appendix D of the Green Paper on Pensions, he will provide the same information in respect of PRSAs and RACs for the past year for which figures are available. [42006/10]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the latest relevant information available is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2007. RACs and PRSAs are available to the self-employed and to employees not in occupational pension schemes. The information is set out in the tables, which provide the number of cases, amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges.
The information is based on income returns contained in Revenue records at the time the data were compiled for analytical purposes, representing in the region of 90% of all returns expected.
A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.
| INCOME TAX 2007 | |||||||
| Retirement Annuity - by range of Gross Income. | |||||||
| Range of gross | |||||||
| % income | % Totals | ||||||
| From | To | Number of cases | Amount of deduction | Reduction in tax | Tax due for payment | Gross Tax * | Reduction in tax as % of Gross Tax |
| € | € | ||||||
| € | € | € | € | % | |||
| - | 9,000 | 677 | 890,433 | 7,322 | 1,028 | 8,350 | 87.7 |
| 9,000 | 10,000 | 139 | 200,186 | 8,111 | 245 | 8,356 | 97.1 |
| 10,000 | 12,000 | 453 | 694,759 | 69,726 | 12,328 | 82,054 | 85.0 |
| 12,000 | 15,000 | 1,009 | 1,801,088 | 232,930 | 143,996 | 376,926 | 61.8 |
| 15,000 | 17,000 | 875 | 1,701,377 | 239,534 | 258,588 | 498,122 | 48.1 |
| 17,000 | 20,000 | 1,686 | 3,413,306 | 513,950 | 710,227 | 1,224,177 | 42.0 |
| 20,000 | 25,000 | 4,069 | 8,560,225 | 1,520,778 | 2,944,869 | 4,465,647 | 34.1 |
| 25,000 | 27,000 | 1,886 | 3,980,967 | 751,331 | 1,966,501 | 2,717,832 | 27.6 |
| 27,000 | 30,000 | 3,166 | 7,099,120 | 1,367,261 | 4,074,590 | 5,441,851 | 25.1 |
| 30,000 | 35,000 | 5,987 | 14,686,475 | 2,894,682 | 10,500,637 | 13,395,319 | 21.6 |
| 35,000 | 40,000 | 6,308 | 16,608,553 | 4,109,613 | 15,247,551 | 19,357,164 | 21.2 |
| 40,000 | 50,000 | 12,354 | 39,221,676 | 11,425,057 | 44,823,408 | 56,248,465 | 20.3 |
| 50,000 | 60,000 | 10,986 | 42,422,932 | 13,034,048 | 58,431,806 | 71,465,854 | 18.2 |
| 60,000 | 75,000 | 13,785 | 64,466,498 | 19,413,380 | 106,238,008 | 125,651,388 | 15.5 |
| 75,000 | 100,000 | 14,930 | 100,895,133 | 31,864,021 | 181,868,259 | 213,732,280 | 14.9 |
| 100,000 | 150,000 | 11,566 | 136,437,525 | 48,461,182 | 245,861,115 | 294,322,297 | 16.5 |
| 150,000 | 200,000 | 4,236 | 87,373,102 | 33,266,582 | 152,726,123 | 185,992,705 | 17.9 |
| 200,000 | 250,000 | 2,422 | 73,319,526 | 28,675,649 | 124,352,651 | 153,028,300 | 18.7 |
| Over | 250,000 | 6,362 | 332,889,619 | 133,131,735 | 839,253,729 | 972,385,464 | 13.7 |
| Totals | 102,896 | 936,662,500 | 330,986,892 | 1,789,415,659 | 2,120,402,551 | 15.6 | |
| * "Gross tax" means the tax that would be due before relief is allowed for retirement annuity deductions |
The figures do not include contributions made by employees through employers' payroll systems and in respect of which tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to make it possible to provide disaggregated figures.
| INCOME TAX 2007 | ||||||||
| Personal Retirement Savings Accounts - by range of Gross Income. | ||||||||
| Range of gross | ||||||||
| income | Totals | |||||||
| From | To | Number | Amount | Reduction | Tax due | Gross Tax * | Reduction in tax | |
| € | € | of cases | of deduction | in tax | for payment | as % of Gross Tax | ||
| € | € | € | € | % | ||||
| - | 9,000 | 126 | 186,165 | 256 | 110 | 366 | 69.9 | |
| 9,000 | 10,000 | 24 | 44,683 | 1,561 | 55 | 1,616 | 96.6 | |
| 10,000 | 12,000 | 80 | 132,136 | 12,046 | 2,847 | 14,893 | 80.9 | |
| 12,000 | 15,000 | 171 | 298,142 | 42,275 | 21,793 | 64,068 | 66.0 | |
| 15,000 | 17,000 | 142 | 324,809 | 40,178 | 34,243 | 74,421 | 54.0 | |
| 17,000 | 20,000 | 397 | 764,059 | 130,187 | 93,733 | 223,920 | 58.1 | |
| 20,000 | 25,000 | 986 | 1,937,405 | 362,642 | 589,240 | 951,882 | 38.1 | |
| 25,000 | 27,000 | 469 | 968,064 | 185,605 | 494,976 | 680,581 | 27.3 | |
| 27,000 | 30,000 | 785 | 1,709,741 | 331,555 | 1,086,812 | 1,418,367 | 23.4 | |
| 30,000 | 35,000 | 1,330 | 3,103,220 | 625,828 | 2,582,594 | 3,208,422 | 19.5 | |
| 35,000 | 40,000 | 1,328 | 3,674,148 | 1,030,084 | 3,560,495 | 4,590,579 | 22.4 | |
| 40,000 | 50,000 | 2,193 | 7,066,857 | 2,258,955 | 9,097,529 | 11,356,484 | 19.9 | |
| 50,000 | 60,000 | 1,798 | 6,614,692 | 2,198,980 | 10,841,069 | 13,040,049 | 16.9 | |
| 60,000 | 75,000 | 2,124 | 9,913,302 | 3,189,679 | 17,458,735 | 20,648,414 | 15.4 | |
| 75,000 | 100,000 | 2,076 | 13,417,874 | 5,234,366 | 27,371,125 | 32,605,491 | 16.1 | |
| 100,000 | 150,000 | 1,471 | 14,676,955 | 5,972,349 | 34,485,746 | 40,458,095 | 14.8 | |
| 150,000 | 200,000 | 488 | 7,462,722 | 3,057,334 | 19,228,877 | 22,286,211 | 13.7 | |
| 200,000 | 250,000 | 219 | 4,523,914 | 1,846,039 | 11,838,134 | 13,684,173 | 13.5 | |
| Over | 250,000 | 443 | 15,718,308 | 6,424,298 | 55,835,688 | 62,259,986 | 10.3 | |
| Totals | 16,650 | 92,537,196 | 32,944,217 | 194,623,801 | 227,568,018 | 14.5 | ||
| * "Gross tax" means the tax that would be due before relief is allowed for PRSA deductions |
The figures do not include contributions made by employees through employers' payroll systems and in respect of which tax relief is provided on the net pay basis. Information on such contributions is not captured in such a way as to make it possible to provide disaggregated figures.
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