Written answers

Wednesday, 8 March 2017

Department of Finance

Pension Provisions

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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131. To ask the Minister for Finance the expected annuities on retirement based on reaching the standard fund threshold of €1.3 million if the standard fund threshold was reduced to €1.3 million; and if he will make a statement on the matter. [12218/17]

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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132. To ask the Minister for Finance the expected annuities on retirement based on reaching the standard fund threshold of €2 million; and if he will make a statement on the matter. [12219/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 131 and 132 together.

In Budget 2013 I indicated that tax relief on pension contributions would in future only serve to subsidise pension schemes that deliver income of up to €60,000 per annum. Extensive work was subsequently undertaken to consider the technical aspects of delivering on this Budget undertaking.  This work was of necessity based on 2013 valuations. While there was not a direct specific correlation, this led to the reduction from €2.3 million to €2 million in the SFT in Budget 2014 and Finance (No.2) Act 2013  with effect from 1 January 2014. Without engaging in similar detailed work it would not be possible to make an estimate of the annuities that could be expected where the SFT had been reduced to €1.3 million.

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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133. To ask the Minister for Finance the number of pension funds drawn down on retirement on which there was an initial drawdown, that had valuations (details supplied), in each of the years 2013 to 2016, in tabular form. [12226/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Section 790AA of the Taxes Consolidation Act 1997 provides for the taxation of retirement lump sums, paid under various pension arrangements, that are above the specified tax-free limit of €200,000.

Revenue has advised me that its records are not maintained in a manner that facilitates the provision of the information in the tranches requested by the Deputy. However, the following table sets out the total number of relevant retirement lump sum payments (> €200,000) and the associated tax collected for the years 2013 to 2016.

Revenue has also confirmed that it holds no data in regard to retirement lump sums where the amounts paid were below the tax-free limit.

YearTotal number of retirement lump sum payments > €200,000Total tax paid (millions)
2013857€14.4
2014888€12.2
2015883€14.8
2016910€13.2

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