Clare Daly (Dublin North, Socialist Party)
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Question 59: To ask the Minister for Finance the reason staff at an academy (details supplied) are being levied both the newly established pension levy on private pensions, while they are already subject to the public sector pension levy; and the way he will address this anomaly of a private body being deemed to be public because it receives State funding. [16923/11]

Michael Noonan (Limerick City, Fine Gael)
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Public servants who are members of public service pension schemes are liable to pay the pension-related deduction legislated for in the Financial Emergency Measures in the Public Interest Act 2009. The applicability of the deduction to staff at the academy referred to by the Deputy arises from section 1 of the Act, by way of the definition of 'public service body', which includes, at paragraph (i) 'a body...that is wholly or partly funded out of money provided by the Oireachtas or from the Central Fund...and in respect of which a public service pension scheme exists or applies or may be made'. The deduction arising under the Financial Emergency Measures in the Public Interest Act 2009, in addition to normal contributions made to pension schemes before the introduction of that Act, qualify for income tax relief. As such these amounts are treated for income tax purposes in the same way as contributions made by private sector workers to funded pension schemes. Employees in both sectors qualify for tax relief as respects all contributions made towards the cost of pensions provided by their employers, subject only to the appropriate age and earnings limits.

As to the temporary 4 year pension levy being introduced to fund the Jobs Initiative, the levy will apply to funded pension arrangements whether in the private sector or the public sector. A stamp duty of 0.6% will be applied to the market value, on the valuation date, of assets under management in pension funds and pension plans approved by the Revenue Commissioners under Irish tax legislation, as set out in section 4 of Finance (No 2) Act 2011.

In the circumstances as outlined above, I do not consider it anomalous for the employees concerned to make contributions or additional contributions towards the cost of their pensions provision under the Financial Emergency Measures in the Public Interest Act 2009 and at the same time for the administrator or insurer of any funded pension scheme operated by their employer to be subject to the new temporary 0.6% pension fund levy.