REACTION:THE AGE Action group has expressed its grave concern at the pension levy and the impact it will have on existing and future pensioners.
Private sector pension funds are to be hit with a €1.9 billion levy over the next four years to fund the jobs initiative announced on Tuesday.
Minister for Finance Michael Noonan said the levy of 0.6 per cent will have to be paid each year for four years. The Government also said it would introduce legislation to allow pension funds cut the level of pensions paid to people in retirement. Until now pensions already being paid were untouchable.
Opposition to the plans continued to mount yesterday. “Proposed new legislation which allow pension funds to cut pension payments to some existing pensioners will cause huge financial uncertainty for retired people who up to now had made financial plans based on a defined, fixed income,” Age Action spokesman Eamon Timmins, said.
“We are concerned in particular about pensioners on very low pensions and about the disincentive which the new charge for anyone considering investing in a pension,” Mr Timmins said.
He called on the Government to provide clarity on its plans.
