On 20 January 2014, a proposal was presented to amend pension accrual rates and impose a limit on “pensionable” income.
The following measures are included in the proposed amendments:
- An adjustment to the maximum pension accrual rates;
- A cap on the amount of maximum “pensionable income” at €100,000 (less the state pension offset);
- A new voluntary, tax-friendly retirement savings plan for individuals in the higher income bracket; and
- Tax relief for the retirement reserve and life insurance policy or banking annuity to be reduced in line with the adjustments to employee pensions.
