What were the Pension Related Deduction (PRD) and Additional Superannuation Contribution (ASC) for ?
Are public servants not currently paying ASC towards their pensions (since 2019 for ASC and PRD since 2009)?
ASC is a permanent pension contribution payable in addition to existing pension contributions and attracting tax relief at the marginal rate.
They attract no pensionable benefits at all.
The original PRD was a pure pay cut as it conferred no additional pension benefit.Respectfully, it's not.
Neither of you is quite right. The original PRD was a pure pay cut as it conferred no additional pension benefit and no tax relief was granted on it.
The ASC (which replaced the PRD in 2018) varies depending on what scheme you are in, and tax relief is granted on it like a normal pension contribution.
Edit: you are correct.The PRD did get tax relief.
My memory was the 'advisors' didn't realise that it wasn't taxable, so another paycut was introduced shortly after that.I'm open to correction but I can't find a reference to it in a Finance Act of that era.
Its not linked to your Public Sector Pension , it was a trick slipped into a pay restoration deal which made the "Pension Levy" legal , the big difference between ASC and the "Pension Levy " is that ASC is charged only on your pensionable pay and allowances but the Pension Levy was charged against all pay . It altered your original contract terms without your consent under FEMPI but made it legal in ASC which by the way did not even match the pay restoration in that paydeal , the Unions and pre 95 sold everybody else down the river on that one .Respectfully, it's not. It's linked to pension - https://assets.gov.ie/7407/5ee8f7cf2f9e4030b65144424aae4a1d.pdf
I'm open to correction but I can't find a reference to it in a Finance Act of that era.
Like the standard pension deduction the PRD was not subject to tax. Both were deducted before tax was applied.
Yes, it got full tax relief. At source.The PRD was levied on Gross Income.
By reducing that income by the amount of the PRD relief was, therefore, granted at the marginal rate of tax.
You did only technically Let's say your pre-PRD pay was say €70k and your post-PRD pay was €63K. Your taxable pay, per your P60 and your tax return, was €63K.Yes, it got full tax relief. At source.
Yes, but tax relief is not at 100%. It is at the marginal rate. So it is not true to say that it wasn't "taxed".Yes, it got full tax relief. At source.
As I said, it got full tax relief - just as standard pension contributions do. I never suggested that tax relief is 100% .Yes, but tax relief is not at 100%. It is at the marginal rate.
So it is not true to say that it wasn't "taxed"
Like the standard pension deduction the PRD was not subject to tax. Both were deducted before tax was applied.
CorrectWell, you can call it whatever you like, but its a paycut.
A pension scheme was set up for employees, with a defined contribution and a defined benefit
Then the contribution ( percentage of gross pay) was increased, considerably. There was no increase in pension benefit ( percentage of salary) from these substantial charges. So, its a paycut, tax relief or not.
No increase in pension, pay cut since 2009, charged on un pensioned allowances, overtime etc up to 2019. in my case 22,000 unpensioned levy deducted no increase in pension.Correct