As part of the Government Jobs Initiative, the Government introduced a levy on pension funds with effect from 22 June 2011.
The levy consists of a 0.6% charge per annum on the market value of the pension scheme assets at 30 June of each year, payable on or before 25 September. Late payment is subject to a financial penalty, which is a flat charge of €380 per day. Broadly speaking, the levy applies to all occupational pensions schemes, retirement annuity contracts and personal retirement savings accounts. It is proposed that it will apply for four years (2011-2014) and the Government hopes to raise approximately €470 million per year.