Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context

Question 496: To ask the Minister for Defence the amount of revenue that could be raised in a twelve month period by applying a 0% rate of tax on the first €75,000 lump sum pension payment paid out to public and civil servants in his Department on retirement; then applying the lower rate of tax on the next €125,000 of the same payment; and applying the higher rate of tax on the remainder. [27058/11]

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context

Question 498: To ask the Minister for Defence the amount of revenue that could have been raised between June 2010 and June 2011 if a 0% rate of tax on the first €75,000 lump sum pension payment on retirement of all public and civil servants in his Department during the same period; applying the lower rate of tax on the next €125,000 of the same payment; and applying the higher rate of tax on the remainder. [27090/11]

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 496 and 498 together.

It is not possible to say how many in the categories set out in the table beneath will retire in the next twelve months and consequently it is not possible to provide a meaningful estimate; however, the table gives an indication of the potential revenue on the basis of actual payments in the period June 2010 to June 2011.

The taxation of retirement lumps sums is based on the legislative arrangements in force when the lump sum is paid. The following arrangements currently apply:

· Lump sum amounts up to €200,000 are paid free of tax. They are also paid free of the Universal Social Charge (USC).

· The portion of a lump sum between €200,001 and €575,000 is taxed on a ring-fenced basis at 20%. (This means that no tax credits or other tax reliefs can be set against this portion of the lump sum.) No USC is chargeable.

· Any amount of a lump sum in excess of €575,000 is taxed at the individual's marginal rate of tax (credits and other reliefs are available). In this instance, USC is chargeable on the excess.

The threshold figures detailed above are lifetime limits with lump sums paid on or after 7 December 2005 aggregating with any later lump sums in counting towards those thresholds. As with all taxation measures, these arrangements are subject to any review that might occur as part of the annual Budget and Finance Bill process and that is a matter for my colleague, the Minister for Finance.

Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context

Question 497: To ask the Minister for Defence the number of retired public and civil servants from his Department that are currently in receipt of an annual pension of up to and including €30,000 per year; up to and including €50,000 per year; up to and including €70,000 per year; up to and including €90,000 per year; up to and including €100,000 per year; up to and including €120,000 per year, up to and including €140,000 per year; up to and including €160,000 per year; and the number in receipt of pensions in excess of €160,000 per year, in a tabular form. [27074/11]

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context

In relation to former members of the Permanent Defence Force, the information requested is shown in tabular form beneath. I understand that the Minister for Public Expenditure and Reform is providing the requested information on retired civil servants and civilian employees, as sought by the Deputy.

The largest category above (up to and including €30,000) also includes some 1,700 spouses' and children's pensions.