Legislative Update March 2010
National Pensions Framework
The National Pensions Framework was published by the Department
of Social and Family affairs on the 3rd of March 2010. The
document sets out a framework for the future provision of pensions
in Ireland. There has been no immediate change to taxation or
pensions legislation. Implementation of the proposals
outlined in the framework document are scheduled to be implemented
over a five year period with many of the proposals not taking
effect until 2014 at the earliest. The Framework proposes the
following principal changes
- Mandatory enrolment in pension schemes for those over age 22
from 2014
- Tax relief for contributions to be replaced by a single rate of
33%.
- The reform of public sector pensions.
- The State retirement age to become age 66 from 2014, age 67
from 2021 and age 68 from 2028.
- The limit on the amount of Tax free lump sum is reduced to
€200,000 from the current limit of €1.35m.
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