public service pension levy - on overtime too?

The pension levy announced by Biffo yesterday - it's to be on gross income. I pay a pension contribution on my basic salary, as does the state, and am entitled to a pension of half my basic salary after 40 years.
However for any overtime (overnight) work I do there is currently no pension deduction or entitlement.

So to my question - does anyone know if the new pension on my gross basic salary or on total income?

Re: public sector pension levy - on overtime too?

I got this from IMPACT today

• The levy will be based on gross salary and will be tax deductible but probably only at the standard rate. Details from Government are sketchy.

• The levy will apply to all income even income which currently is not considered as pensionable income e.g. overtime

Re: public sector pension levy - on overtime too?

thanks becky

Biffo, FF, and Greens are taking the easy way out - pick on the public servants - a levy on income that's not even pensionable!

Re: public sector pension levy - on overtime too?

Becky,
If your IMPACT representatives read the example on the Dept of Finance website, they will see that the tax relief is at the marginal rate, not just the Standard rate.
Could I also point out that the "levy" is tax deductible, so the horror stories coming from union representatives (purely focussing on the gross cost) must be tempered by the tax saving.
With virtually all the unemployment increases hitting the private sector (in addition to income reductions across most industries - other than the ESB), I think the Pension Levy is a small price to pay for 100% job security and 100% pension security.

Re: public sector pension levy - on overtime too?

Conan said:

Becky,
If your IMPACT representatives read the example on the Dept of Finance website, they will see that the tax relief is at the marginal rate, not just the Standard rate.

Click to expand...

Thanks.

Re: public sector pension levy - on overtime too?

becky said:

I got this from IMPACT today

• The levy will be based on gross salary and will be tax deductible but probably only at the standard rate. Details from Government are sketchy.

Click to expand...

Quite how anyone could draw the conclusion that the levy would be tax deductable at the standard rate, when all other pension deductions are made at the marginal rate, is beyond me.

Either there's no relief or it's at the marginal rate. Now maybe at some time in the future the Govt might change all pension legislation to make everyone's relief apply at the standard rather than marginal rate, but that's a different thing altogether.

It can be frustrating to see ordinary Joes make seemingly incorrect assumptions but seeing the confusion in the Govt and amongst Union officials really does make you question the financial literacy of those involved. Maybe by "standard rate" they meant "you know, the usual rate" but if they don't what they're talking about they should just keep quiet. Ill informed or inaccurate opinion is the last thing that's needed.

Re: public sector pension levy - on overtime too?

Moved from Credit Crunch related issues to Public Sector Pensions which is where the mechanics of the public service pension levy is discussed.

aj

Re: public sector pension levy - on overtime too?

I am based on site on a capital project.
Last year our tax free site allowance was taxed.

My pension is based on my basic salary which makes up half my salary.
I get an acting allowance the site allowance which are not pensionable to cater for overtime and site conditions.

Is the pension levy on my acting allowance and my site allowance too?

From reading a circular we received from impact it appears to be on all income. As someone on an acting grade I find it bizarre that I will be paying a pension contribution on a grade for which I will not be receiving a pension! And given my projected max yearly pension of less than 13% of my base salary it makes it even crazier. And I won't even mention the temporary contract!! I guess it will all become clearer in the next few weeks.

As a public sector worker I have no choice but to do overtime( in my contract). This is not pensionable so ineffect if so called pension levy is on this I willl be paying tax at 50% on this and no benefit to pension. How can this be fair. I have no issue paying more if the same is applied to everyone. Why didn't they introduce a new tax rate for higher earners? I have childcare bill of 1700/month so will have to seriously look at giving up work. If I do I will be entitled to more social welfare benefits which will cost gov more money. This gov is a disgrace thinking they can go after lower/middle income earners and leave the big boys alone.