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The National Pensions Framework was published by the Department of Social and Family Affairs last week. Key recommendations made include:

  • An effective tax relief on personal pension contributions at 33%
  • A mandatory approach to pension scheme membership
  • A cap of €200,000 on the tax free lump sum
  • Increasing the state pension age

A number of recommendations made by the Commission on Taxation have been reflected in the framework document, including that pension lump sums of less than €200,000 should not be taxed.  The tax treatment of lump sums greater than €200,000 is to be considered and developed.

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