NATIONAL PENSIONS FRAMEWORK
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.
