Lobbying the Oireachtas Committee - Part 3

In the third part of our video blog series on the presentation to the Orieachtas, Aidan McLoughlin discusses the recent announcement that the government are to review the costs of pensions. Could applying international standards improve the pensions industry?

Lobbying the Oireachtas Committee - Part 2

This is the second of four video blogs where Aidan McLoughlin outlines the main points raised in the presentation to the Oireachtas Committee. Here Aidan outlines the impact that the 4 year plan has had on pensions.

Lobbying the Oireachtas Committee - Part 1

Aidan McLoughlin was part of a group of IBA Committee members who presented to the Oireachtas this week on Wednesday 8th February. Over the coming weeks, we will have a series of video blogs highlighting the main points discussed, the first of which can be viewed here.

Trustee Training Deadline is tomorrow 1st February

As the deadline for Trustee Training is upon us, Trustee Manager, Elma Fox, discusses the last chance to comply with the deadline with Ian Guider on Newstalk's Breakfast Business.

The deadline for trustee training is tomorrow, 1st February 2012, and there is a concern that many due to complete the training are unaware of their obligations. We have developed on-line tools to help define the requirements and to complete the training. More information can be found at www.trustee.ie.

Listen to Elma's interview with Ian Guider here, at 07:56. 

New Years Resolution!

Complete trustee training and avoid €2k fine!

Almost two years ago, the Pensions Board introduced a requirement for all pension scheme trustees to complete trustee training. For any trustees appointed prior to that date they have two years to complete the training so the 1^st February 2012 is the deadline for many.   

The concern is that many who are due to complete the training have not yet done so because of lack of awareness of their obligations. 

3 Common Misconceptions

·      There is an assumption that this training is for bigger pension schemes only but that’s not the case.  If the employer fail to provide training to all the relevant parties they may be prosecuted. In addition a trustee who does not undergo the training may be subject to an on-the-spot fine of €2,000 by the Pensions Board.

·         One or two person company pension schemes where the employer is the trustee.  Many of these employers may not realise they are still officially the trustees of such schemes particularly where the scheme was established for an employee who has since left the company.  However,  the employer remains as the trustee and must comply with the requirements.

·         Directors must receive training even if the scheme is only established for one of them. The key point is that; if the employer is the trustee (as is normal for one person schemes) then ALL the directors must complete the training.

Independent Trustee Company have developed an on-line tool to help those who are unsure of their requirements find out if they are actually required to complete the training.  It’s a quick process and can be found on www.trustee.ie

Revenue discover 115,000 pensioners

Following on from our previous post, Aidan McLoughlin was interviewed on Morning Ireland about the shock revelation from the Revenue that 115,000 pensioners have been underpaying tax on their Social Welfare pensions. The reason apparently is because the Revenue didn't know they were in receipt of Social Welfare pensions and therefore hadn't factored this extra income into their tax allowances.

Listen to the podcast here.

Could the pensions levy have been prevented?

The announcement by Revenue that 115,000 pensioners have been underpaying their tax will come as a shock to many. The reason apparently is because the Revenue didn’t know they were in receipt of Social Welfare pensions and therefore hadn’t factored this extra income into their tax allowances.

 

The Revenue press release on this matter indicates that the tax payable could exceed €4,000 for a single person or €8,000 for a married person. Taking the lower figure as an average it would seem that the tax foregone could amount to €460m – about the amount collected by the pension levy. Its begs the question whether or not the pensions levy could have been prevented?

 

Amazingly there is no suggestion that previous underpayments will be collected. The Revenue's focus will be on getting it right from now on. Other pensioners who paid their tax in full and are now paying a pension levy on top can only look with envy at their peers who have neither exposure.