37. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance if his Department has assessed the position of retired members of private sector pension schemes whose pensions were permanently reduced to meet the 2011 to 2015 pension levy, and whose cumulative losses now substantially exceed the levy amounts attributable to them; if he accepts that a levy described as temporary has had a permanent effect on these pensioners and their surviving spouses; and if he will make a statement on the matter. [74659/26]

The pension fund levy was introduced in 2011 in the wake of a severe economic and financial crash. To preserve and boost jobs, all sectors of the economy had to contribute to the recovery. In this context, the pension levy was designed to claw back a small amount of the very significant tax relief that those contributing to pension arrangements had benefitted from over many years. It is worth noting that pensions continued to benefit from a range of tax relief benefits even at a time of serious economic difficulty.

Specifically, the levy funded the tax reductions and expenditure measures introduced in the then Jobs Initiative, including, for example, the lowering of the VAT rate for the tourism sector to 9%. For the years 2011, 2012 and 2013 the rate was 0.60% of the pension scheme assets. For the year 2014 the rate was 0.75% of the assets and for the year 2015, the final year of the levy, the rate was reduced to 0.15%.

Under the relevant legislation, the payment of the levy was treated as a necessary expense of a pension scheme. Scheme trustees or insurers, as appropriate, were entitled to adjust current or prospective benefits payable under a scheme to take account of the levy. It was at the discretion of those trustees or insurers to decide whether, when, and how the levy should be passed on, and to what extent, given the particular circumstances of the pension schemes for which they are responsible.

The value of the funds raised by way of the levies has been used to protect and create jobs and has supported the improved financial and economic position of the State during a time that the economy was in serious difficulties.