- Employee contributions to occupational pension schemes will be subject to employee PRSI and the Universal Social Charge with effect from 1 January 2011
- The current employer PRSI exemption for employee pension contributions to occupational pension schemes and other pension arrangements will be reduced by 50% from 1 January 2011
- Reduction in the annual earnings limit from €150,000 in 2010 to €115,000 in 2011. Individuals who usually make a pension contribution when submitting their income tax return after the end of the tax year should note that the new reduced limit of €115,000 will be applied to contributions made in 2011 for the tax year 2010 even though the limit for the 2010 tax year is €150,000.
- With effect from 1 January 2011 the tax free limit on retirement lump sums has been reduced to €200,000. Any sums paid over this amount up to €575,000 will be taxable at the standard rate of income tax. The balance will be taxable at the marginal rate of income tax. Tax free lump sums taken on or after 7 December 2005 will count towards determining whether the tax free amount has been used up
- The annual imputed distribution to assets in an ARF is being increased from 3% to 5% in relation to asset values at 31 December 2010 and thereafter