Life-course savings

What to do with your accrued life-course savings
Since January 1, 2012 an employee can only continue to save in the life-course savings scheme if their life-course balance on 31 December 2011 is more than € 3,000 (including interest accrued over 2011 but deposited in 2012). However there is no longer a tax deduction attached to further deposits. Employees with a life-course savings balance of less than € 3,000 can no longer utilize the scheme; however they can use their remaining balance to take leave in 2012. In that case, payroll tax/national insurance contributions and income-related health insurance contributions are deducted. If an employee does not take leave, these charges will be deducted from the balance which stands in the account on 1 January 2013. Initially employees were going to be able to transfer their life-course savings balance to a vitality savings account tax-free, but the introduction of this scheme will probably not go ahead (Amendment Agreement Budget 2013).