What does the Social Insurance Fund have to do with pensions paid to retired public servants?
Glad you asked
Public servants hired before the end of Dec 1994 seen around 1.96% of payroll taken and paid into the social Insurance Fund, there employers paid none, and all pension paid out came from direct taxation,
when they retired,(total paid in by employers/employee social insurance fund 1.96%,
A Public Servant grade 3 public servant after 40 years on 38k would get a pension of 19K from direct taxation before 1995
Public servants hired after the start of 1995 seen around 18.5% payroll taken and paid into the Social Insurance Fund , (seme as a private sector worker and there Employers,
A public servant grade 3 retiring after 40 years on 38K would get a pension of 19K 12.5 K contributory pension same as a private sector worker and 6.5k from direct taxation,after 1995
Note the Government/employer of the public servants hired before 1994 would have taken the public servants % of payroll pension contribution and pocketed/squandered it for the last 40 years,along with having no fund built up over the employees lifetime to meet undertakings given in there contract of Employment,
Note the Government/Employer of the public servant hired after 1995 would have taken the public servants contribution % of payroll pension contributions along with there own contribution of around 10.75% for state pension and squandered it,
The real pension problem for public/private PAYE Workers is the squandering of there/employers contributions over there working life, others getting the same pension and paying in very little some only paying around 500 euro for 10 years can get the same state pension at present,
More than likely it is the people who paid in very little who are behind the artical,
The next time the Troika arrive it will be to sort out the mess The Charlies of this World Ignore,