Finian McGrath (Dublin North Central, Independent)
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282. To ask the Minister for Finance his views on correspondence regarding private pension funds (details supplied); and if he will make a statement on the matter. [21851/15]

Michael Noonan (Limerick City, Fine Gael)
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The details supplied refer briefly to public sector pensions. I understand from my colleague the Minister for Public Expenditure and Reform who has responsibility for that matter that he intends to bring proposals to Government shortly regarding the public sector pension reductions made in recent years.

The details supplied primarily refer to the Pension Fund Levies which I introduced in 2011 and 2014 on the assets of private pension funds. I announced in my Budget 2014 speech that the 0.6% levy introduced in 2011 to fund the Jobs Initiative would be abolished from 31 December 2014. I did, however, introduce an additional levy on pension funds at 0.15% for 2014 and 2015. I did this to, among other things, continue to help fund the Jobs Initiative. I confirmed in my Budget 2015 speech that the additional 0.15% levy will expire at the end of 2015.

 The chargeable persons for the pension fund levy are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. 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 they decide to do so, 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, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy.

The value of the funds raised by way of the levy have been used to protect and create jobs and this has helped to create the improving financial and economic position of the State. Taxpayers to whom the impact of the levy may have been passed on by the chargeable persons for the levy will benefit from the changes which I began in Budget 2015 and which will continue in future Budgets to reduce the tax burden on low and middle income earners.