The Government has introduced a new levy on most private pension funds which has received wide coverage in the media in recent weeks. The following are answers to some of the more frequently asked questions about the new levy.

How much is the levy?
The levy is 0.6% of the value of assets in pension funds.

How long will the levy last for?
The current intention is for it to last for 4 years, although that may change.

Is every pension fund affected?
No. The levy applies to most private pension funds, including PRSAs. However, it does not apply to the following:

- Approved Retirement Funds (ARFs) or Approved Minimum Retirement Funds (AMRFs)
- Annuities (i.e. annuity pensions already in payment)
- Vested PRSAs (i.e. PRSAs from which a tax free lump sum has already been extracted)
- Certain foreign pensions
- Certain occupational pension schemes that are in wind-up where the employer is insolvent

How do I pay the levy?
The levy will be paid on your behalf by the administrators or trustees of your pension scheme.

How will the administrators be reimbursed?
In most cases the administrators will deduct the cost of the levy from your pension fund. However, if there are insufficient liquid assets in your fund then it may be necessary to introduce cash to the fund.

When is the first payment due?
The first payment is due on 25^th September 2011.

How does the levy work in the case of a Defined Benefit (“DB”) pension scheme?
The levy imposes an additional funding requirement on DB schemes and, therefore, on sponsoring employers, if existing benefit commitments are to be met. However, DB schemes may also meet the cost of the levy by reducing pensions in payment.

Can the levy be avoided?
Possibly. Depending on your circumstances it may be possible to avoid the levy. If you are at or approaching retirement age this could be relatively straightforward.

Should I stop making pension contributions?
There have been a number of recent legislative changes that have significant implications for pensions, and many pension strategies may require careful evaluation as a result. However, in the vast majority of cases the pension levy should not influence whether or not you should stop making pension contributions. For many people, pension funding continues to be a tax-efficient way to fund for retirement.

~ENDS

One of Aria’s core fund manager selections, Anas Chakra, has been named in the top ten European fund managers. Anas, who manages the Fidelity FAST Europe fund, has been named among an elite group who have generated the best total returns over the last five years in European equities.

In addition to achieving a top 10 performance rating, Anas Chakra has earned the prestigious Citywire AAA rating. The stellar performance of his FAST Europe fund compared to its benchmark is summarised in the following table and chart:

*4 October 2004

The Fidelity FAST Europe fund is a concentrated portfolio of high conviction ideas selected using a “bottom up” approach. The manager can use “short” derivative positions (up to 30%), additional “long” derivative positions (up to 35%) and can invest up to 30% outside of core European equity universe of the fund, both in terms of geography and asset class. He will also use derivatives for hedging to reduce volatility and enhance yield. The result is a dynamic equity fund that aims to generate superior returns to that of the MSCI Europe performance benchmark. The Fund had assets under management of €2.6 billion as of 28 February 2011.

~ENDS

Aria is pleased to announce that it has been appointed under Dublin City Council’s Framework Agreement for the Supply of Financial Services.  The appointment follows Aria’s success in Dublin City Council’s detailed public tender process.  According to the terms of Aria’s appointment, Aria will be available to provide Corporate Finance and Procurement support to Dublin City Council during a minimum three year period.

Aria’s Corporate Advisory team has extensive experience of managing and advising on large scale transactions, having handled in excess of €100 million of transactions in recent years.  Aria’s team brings many years’ top level corporate, commercial and financial experience to bear when advising and supporting clients.  During the recent period of economic and commercial challenges Aria has successfully guided clients through significant business expansion, cost reduction and lease renegotiation projects.

Aria welcomes this opportunity to develop an effective advisory relationship with Dublin City Council and looks forward to working closely with the Council’s team over the period of the framework agreement.

~ ENDS