Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 158: To ask the Minister for Finance his views on a submission (details supplied) regarding the pension levy; if the substance of the submission has been addressed by the organisers and if proper procedures have been adapted; and if he will make a statement on the matter. [31023/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The submission referred to in the question is a copy of a letter on behalf of the trustees of a pension scheme to a retired scheme member outlining proposed adjustments to his pension on foot of the pension fund levy introduced last year for a period of 4 years. The payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees to decide whether and how the levy should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible.

However, the legislation also includes provisions aimed at ensuring that benefits payable, either currently or prospectively to any member, are adjusted in such a way that the reduction in value of those benefits shall not exceed 0.6% of the market value of the assets accounting for the scheme's liabilities to that member. I am not in a position to comment on the specific details of the letter. I would assume that, in coming to any decision in this matter, the trustees of the scheme in question will have examined all options open to them and taken professional advice, as appropriate.