To all members of CWPS
You may have read or heard in the news that the Government have introduced a temporary levy to be charged on the value of all pension fund assets.
This levy is to be charged on the assets which the Scheme holds on your behalf to meet your (or your spouse’s) future pension. This levy amounts to 0.6% of the value of your fund for each of the 4 years from 2011 to 2014.
The Trustee Board have discussed this new government levy and its implications for CWPS members and pensioners and they have decided that the pension levy of 0.6% due for 2011would be funded by the Scheme out of existing reserves.
The 2011 levy which in total amounted to €6.2m was paid on 25th September last, which was the due date as required by the new legislation. Had the Trustees not been in a position to fund the cost of the levy from reserves, this cost would have been payable by all members of CWPS both active, deferred and pensioners from their fund. The Trustees have confirmed that the position will be reviewed again mid-2012 however, it is unlikely that for future years the Scheme will be in a position to continue to fund the levy from reserves.
So what does this mean to you our member? It means that for 2011 there will be no deductions from your fund to cover the cost of this levy. The Trustees have paid the 2011 government levy out of Scheme reserves.
What about the 2012 and further years levy payments? No decision has been made yet as to how future levy payments will be funded. The Trustees will review the position again in mid-2012 and will correspond with you to let you know what decisions they have made regarding how the levy is to be funded, but it is unlikely to be in a position to fund it in future years and it may be necessary to deduct this levy from your fund.
The Trustees of CWPS, through representatives in the pension’s industry, have raised their objections to this levy as they feel that this new government levy is unjust and unfair, but unfortunately this levy must be paid. Where possible, pressure must be brought on government to prevent this temporary levy from becoming permanent.