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Pension Change in Budget?

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  • 02-11-2009 12:15pm
    #1
    homer911
    Registered Users Posts: 5,119 ✭✭✭


    I'm a member of a DC company pension currently contributing about 15% of Net Reckonable earnings in AVCs and mandatory contribution. I'm a marginal rate tax payer above the PRSI threshold.

    I'm concerned the budget on December 9th will reduce tax relief on my contributions and may also prevent backdating of relief for contributions between 1/1 and 31/10 next year.

    I'm therefore looking into a significant contribution top up in December and then taking an AVC contribution holiday for a few months in the new year

    Being December, my employer will be running its payroll early, prior to the budget announcement, so I would have to let them know my plans early.

    I presume the contribution threshold (25% in my case) works on a YTD basis?

    I also presume this means I could actually contribute more in pension than my actual salary in December, provided I dont end up owing my employer money?

    Am I being overly paranoid?


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