Genuine Query re: recent announcement in public pensions

[WaterSprite]

Hi all

this is a genuine question and not a call to arms to flame the public sector.

I saw these two articles (one from the IT, one from the Indo):

IT: [broken link removed]

Indo: http://www.independent.ie/national-...pc-tax-on-pensions-of-euro100000-2949194.html

One (IT) says that those public/civil servants on a pension of over €100k per year will have an increased levy of 20%.

The other (Indo) says that a new top rate of tax of 20% (currently 10.5%) will be imposed on pension payments.

The two are very different in my eyes. My question is whether pension payments for civil/public servants are taxed (regardless of how the pension is paid for initially) at a different rate than those paid to other people?

So, ignoring other factors such as DC/DB pensions, when someone gets a theoretical €100k pension, are they taxed differently on the monthly payments made to them depending on whether they are public/civil servants or not?

Thanks
Sprite

 

[Squaremile]

WaterSprite,

Pension payments in the private and public sector are taxed at the same rates.

Retired public servants currently pay a 'pensions levy' which is applied at different rates depending on their salary. A new higher level of 20% looks as if it to be introduced and will be applied to the part of the pension over 100k. The levy is deducted before tax is calculated.

Regards,
Andrew

 

[Evening]

The Public Sector Pension Reduction www.finance.gov.ie/documents/publications/guidelines/faqpubsecpensreducmar11.pdf

It was introduced from 1st January 2011, what has been announced this week is introducing a further reduction (see point 2) in the portion of a person's pension over 100,000.

 

[WaterSprite]

Thanks both - that Indo article was completely misleading in that regard. Jeez, I hate the Indo!

 

[partnership]

I think the pension levy on retired pensions is illegal and someone should bring a case against it. I am not affected by this and will not for a long time but people took the retirement based on a set amount and that has now been reduced. Have no problem with it being taxed as that affects everyone equally private and public.

 

[Harry31]

Just a question about the €100,000 cut off point - is it true that, as in the case with some TD's, that it only applies to individual pension amounts over 100K i.e. if someone has 2 or even 3 pensions each under the cutoff it doesn't apply to the actual total?