Updated deposit rates are now available here.

As these rates are subject to change at short notice, please contact us should you wish to confirm a specific rate.

Our firm acts as a deposit agent for AIB, EBS, Investec, KBC Bank and PTSB. We are happy to facilitate deposits with these institutions.

General office administration duties, to include:
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• Processing new business applications.
• Pipeline management and follow-up to policy issue stage.
• On-going maintenance of client database & client files.
• Compliance checking, including Anti Money Laundering regulations with new business applications and existing files.
• Diary management for senior executives.
• Handling client queries.
• Meeting and greeting clients at our offices.

The Person

• This position will suit an applicant with 3-5 years Pension or Investment administration experience.
• The applicant should be studying for, or have attained the QFA designation.
• A good knowledge of the Life & Pensions industry and the range of products in the industry will be a distinct advantage.
• Excellent PC skills & familiarity with Microsoft Office Packages (Word/Excel/Outlook/Powerpoint).
• Familiarity with product provider websites.
• Be able to work with all levels of personnel.
• Excellent communication skills (written & verbal).
• Ability to prioritise and work under time pressures.
• Attention to detail is critical.
• Must be able to work on own initiative.
• A friendly and professional manner is imperative.

Summary

We are a busy brokerage and would welcome applications from people seeking to expand their experience in the industry.

Salary negotiable.

If interested, please email info@cfsireland.com quoting reference CFS-W.

Despite fierce opposition and much criticism, the Finance Bill (No.2) 2011 was passed into law on 22nd June last. This bill provides the legislation for the introduction of the levy on pension schemes announced in the recent Jobs Initiative.

Key Points:

• A levy of 0.6% on the market value of pension assets under management, to raise €470 million per year.
• The legislation specifically refers to the years 2011 to 2014. As such, the Levy will apply for four years (for now…).
• The first valuation date is 30th June 2011, and payments for 2011 are due to Revenue by 25th September next.
• For 2012, 2013 and 2014 the valuation date will also be 30th June, and payments will be due by 25th September annually.
• Applies to company pensions, buy out bonds, self administered pensions, personal pensions and PRSAs.
• The Levy will not apply to Approved Retirement Funds/Approved Minimum Retirement Funds or to vested (retired) PRSAs.

What plans are exempt from the Pension Levy?

As mentioned, the levy will not apply to ARFs, AMRFs and vested PRSAs. Bear in mind that ARF contracts already have a taxable deemed distribution of 5% per annum.

Company pension schemes where the trustees have already passed a resolution to wind up the scheme provided that the employer is insolvent are exempt.

Company pension schemes set up for the benefit of employees employed outside the State are also exempt.

Who deducts the Pension Levy?

Where the pension assets are held with a life company then that life company is charged with deducting the levy. Most life offices have aready deducted the levy at the end of June, and will remit the relevant amount to the revenue on the policyholders behalf.

Where the pension assets are not held in life assurance contracts, then the scheme administrator is responsible for calculating and paying the levy to the Revenue Commissioners. Self administered pensions are the most obvious plans affected here. A substantial penalty of €380 per day applies to late payments.

CFS Comment

We have had a huge amount of feedback about this Levy, pretty much all negative.

Broadly speaking, the levy has been viewed as nothing more than a smash and grab on private savings. People are worried about where the government might look to next as a source of ‘easy money’ to shore up our national finances.

As advised in our previous update, the private pensions sector has already contributed savings of €335 million over the last 2 years. Follow this link for a detailed breakdown of this amount.

Our view remains that long term pension planning is compromised by this Levy.

Finally, if you are aged 60 or over, please contact us about exploring all means of mitigating the impact of this levy on your pension.

As ever, don’t hesitate to contact us on 01 497 2133 should you have any questions at all. We also welcome your feedback at info@cfsireland.com

Updated deposit rates are now available here.

As these rates are subject to change at short notice, please contact us should you wish to confirm a specific rate.

Our firm acts as a deposit agent for Anglo Irish Bank, EBS, Investec, KBC Bank and PTSB. We are happy to facilitate deposits with these institutions.

A copy of the press release can be read here.

The ELG Scheme is subject to 6 monthly review, and this extension is not unexpected.

This is intended to raise €470 million this year for the exchequer, and the scheme is intended to run for 4 years from 1st January 2011.

The levy will apply to occupational pension schemes, personal pensions and PRSA’s.

The levy does not apply to public service pensions.

CFS Comment

This levy is being marketed as part of the Jobs Initiative. Realistically, it’s another taxation on private citizens, and a revenue gathering measure by Government.

Bear in mind that the last ‘temporary’ levy on life assurance and pension premiums (introduced in July 1984) lasted for 8.5 years. It was also increased from 1.67% to 3% after just 2 years.

It’s important to highlight that pension tax relief has already been SUBSTANTIALLY cut in recent years:

• The reduction in the pensionable earnings limit to €150,000 in 2009 is estimated to have yielded €100 million in savings.
• The removal of PRSI & USC relief on employee pension contributions in 2011 is estimated to yield €60 million in savings.
• The further reduction in the pensionable earnings limit to €115,000 in 2011 is estimated to yield €55 million in savings.
• The removal of 50% employer PRSI relief on employee pension contributions is estimated to yield €90 million in savings.
• The reduction in the Standard Pension Fund Threshold to €2.3 million in 2011 is estimated to yield €20 million in savings.
• The increase in ARF deemed distributions from 3% to 5% is estimated to yield €5 million.
• The reduction on the limit on tax free lump sums to €200,000 is estimated to yield €5 million.

Add this lot up and the pensions sector has already contributed savings of €335 million, BEFORE the new levy is applied.

In exchange for this, the Minister for Finance will ‘review’ possible further reductions in tax relief next year.

We will keep you further informed as the mechanics of the levy are finalised.

Global equity markets were shaken by the civil unrest in Libya and the Middle East and the massive natural disaster that hit Japan during March. Markets sold off strongly in the first half of the month before rebounding towards month end with the MSCI World Index returning -3.6% over the month in Euro terms.

Japan was unsurprisingly the worst performing developed market, down 11.5% in Euro terms. Emerging markets reversed the trend of recent months and outperformed developed markets gaining 3.1%. 

The ongoing turmoil in Libya and the Middle East continued to weigh on markets with the oil price climbing further as a result. Investors feared the higher oil price may reduce some of the upside potential for global economic growth which added to risk aversion and volatility in the financial markets.

Global markets shrugged off the Japanese news flow towards the end of the month believing Japanese economic activity is only likely to be disrupted for a relatively short period. It is still too early to definitively assess the potential long-term impact (particularly relating to the impact from malfunctioning nuclear reactors) but if past disasters can be a guide, natural or otherwise, they usually have only a temporary negative economic impact.

Elsewhere during the month the ECB indicated that they may now raise rates as much as three times before the end of 2011. This move is in response
to rising inflation and strong economic growth in Germany, despite the pain being felt in the peripheral Eurozone countries. The US Fed also acknowledged the impact which a sustained higher oil price would have on inflation and the US economy but reiterated the improving fundamentals in the US economy which has now grown for the past 6 quarters.

Corporate profits have remained strong and indications are that corporations are not being negatively affected by the increase in energy costs thus far. Indeed, hiring plans have been accelerating and the US unemployment rate is continuing to trend downwards.

The debt situation in peripheral Eurozone countries continued to occupy the headlines as Portugal was downgraded further by S&P at the end of the month. This drove the yields on the country’s debt to all time highs versus German Bunds. Beyond the downgrade, markets are beginning to sense that a bailout for Portugal is now inevitable.

Source - Kleinworth Benson Investors

 

 

As these rates are subject to change at short notice, please contact us should you wish to confirm a specific rate.

Our firm acts as a deposit agent for Anglo Irish Bank, EBS, Investec, KBC Bank and PTSB. We are happy to facilitate deposits with these institutions.

In Ireland, 2010 may not have felt like such a positive year, especially for investors focused solely on the domestic market caught in headlines of major budget cuts, European bailouts and general economic woes. The ISEQ finished flat in 2010.

Global equities were strongly supported by record company profits as growing revenue streams were backed up by rigorous cost cuttings over the past 2 years. From a macro perspective, a low interest rate and low inflation environment persisted and there are few forecasts of this changing in the near term in the developed world. A trend of dividend reinstatements/increases, share buybacks and mergers and acquisitions emerged as large levels of cash were deployed from company balance sheets. In December,  it was announced that the Bush tax cuts, set to expire at the end of 2010, are to be extended into 2011, which pleased markets.

Emerging market economies performed much stronger than their developed world peers, supported by more solid fiscal foundations. Emerging equity markets outperformed also with the MSCI Emerging Markets Index rising 27.5% in 2010. Chinese news flow gave emerging markets their general direction as the long term China story remains intact. Short term tactical policies kept the economy on track also despite some fears of possible over tightening as the Chinese economy continues to grow at a very fast pace.

On the flip side, European sovereign debt problems led to European government bonds selling off heavily in the final months of the year. Overall, Eurozone bonds had a relatively flat year (for over 5 year bonds) while Eurozone equities underperformed their global peers, significantly impacted by peripheral Eurozone stock markets.

 

Source - Kleinworth Benson Investors & Datastream.

Income Tax

 

·         Tax Credits reduced by 10%

·         Reduction of tax bands by 10%

·         A step towards a universal social contribution paid by all workers

Ø      by abolishing income levy and health levy and replacing it with a universal charge, on an increasing scale up to a maximum of 7%, for income above €16,016

Ø      abolition of the ceiling for employee PRSI contributions. PRSI rate for self-employed, higher earning public servants and certain office holders to be increased (4%)

·         Rent Relief Tax Credit to be phased out over 8 years (same timeline as Mortgage interest relief)

·         Trade Union Subscription Tax Credit abolished

·         Tax exemption from BIK for Employer Provided Childcare abolished

·         Tax relief for new shares bought by employees abolished

·         Restriction of the tax free element of ex-gratia termination payments to €200,000, so that payments above this amount will be subject to tax at the marginal rate. Effective from 1 January 2011

·         PRSI and health levy changes to certain Share schemes

·         Decrease of €8 per week in Maternity and Adoptive Benefits

     

Pensions

 

·         Removal of relief from PRSI and health levies on pension contributions from 2011 onwards.

·         Retirement lump sums above €200,000 will be subject to tax, effective from 1 January 2011. Any tax free retirement lump sum taken on or after 7 December 2005 must be taken into consideration in calculating the amount subject to tax and the rate.

·         Maximum allowable tax relieved pensionable earnings will be reduced to €115,000 for 2011

·         Maximum allowable pension fund on retirement for tax purposes is (SFT) is €2.3m from 7 December 2010

·         The AMRF option is being retained but the set-aside requirement will now be the lesser of 10 times the maximum rate of State Pension, about €120,000 (or the remainder of the pension fund after taking the tax free lump-sum) as compared with €63,500 at present. The specified or guaranteed income limit of €12,700 per annum is being increased to 1.5 times the maximum rate of State Pension bringing the ‘specified income’ limit close to €18,000 per annum.

·         Deemed distribution rate on Approved Retirement Funds increased from 3% to 5%

    

Stamp Duty

 

·         New rate of 1% on all sales of residential properties up to a value of €1m (2% above €1m)

·        All reliefs and exemptions on residential properties are being abolished - subject to a transitional period

 

Indirect Taxes

 

·         Increase in excise duty of

Ø      4 cents per litre of petrol

Ø      2 cents per litre of diesel

·         Review of excise duty on alcohol in 2011

·         Car scrappage scheme extended until 30 June 2011

 

Business Taxation

 

·         No change to the 12.5% corporation tax rate.

·         Extension to the 3 year corporation tax exemption for start up companies commencing a new trade in 2011

·         Employer relief for PRSI on employee contributions to occupational pensions will be reduced by 50%

 

Life Assurance Exit Tax - increased to 30%. Effective from 1 January 2011

 

DIRT - increased to 27% (30% on longer term deposits). Effective from 1 January 2011

 

CAT - tax free thresholds on gifts and inheritance s is being reduced by 20%

 

Other Measures

·         Air travel tax revised to €3 on a temporary basis to 1 March 2011

 

Social Welfare Payments

• A cut of €10 a month in child benefit for the first and second child and a cut of €20 for subsequent children.
• No reduction in State Pension payments

-ENDS-