Ireland Finance Bill to Tackle Judiciary Pension Pot Concerns

8 February 2012 (PLANSPONSOREurope.com) – Ireland’s Finance Bill, set to be published today, will address concerns raised by the judiciary about the tax treatment of their pension pots on retirement, according to reports.

The Irish Times reports that the concerns were raised by former chief justice John Murray in a meeting with Taoiseach Enda Kenny last year.

Due to changes in recent years in the way the cost of pensions of senior public servants has been calculated, judges could face significant lump-sum tax payments upon retirement. This is set to apply in cases where judges have contributed significant sums to private pensions in the years before they were appointed to the bench.

The paper adds that it is expected that some measure of amelioration designed to spread the tax bill over a number of years will be introduced to deal with the concerns raised by the judiciary.

While the overall tax bill to be faced by judges following retirement is unlikely to be changed in any significant way, the Bill is likely to tackle the problem of a massive tax bill at the point of leaving the bench.
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com