On the 24th of November the Government published The National Recovery Plan, 2011 - 2014.
The plan contains a range of revenue and expenditure measures, and includes some specific measures on pensions.
Summary of implications to pensions
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The annual earnings cap is moving from €150,000 per annum to €115,000 in 2011.
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Relief against PRSI and Health Levy on pension contributions is being removed from 2011.
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Tax-free payments in excess of €200,000 will be taxed from 2011.
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Tax relief on pension contributions will remain at 41% in 2011. This is good news for the industry as it means pension contributions for the 2010 and 2011 tax years will still attract higher rate relief.
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It is proposed to reduce pension tax relief from 41% to 20%, on a phased basis, from 2012 to 2014.
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The Standard Fund Threshold may be reduced, though no specific detail is given.