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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