Does the additional monies (millions) deducted from all public and civil servants Salaries re the “Temporary Pensions Levy” and the Additional Superannuation Contribution deducted since 2009 go towards civil servants pensions.It comes out of general taxation.
There is no fund.
Yes, and a lot of other things to. Is it specifically ring-fenced for pensions, no.Does the additional monies (millions) deducted from all public and civil servants Salaries re the “Temporary Pensions Levy” and the Additional Superannuation Contribution deducted since 2009 go towards civil servants pensions.
The “logic” was that public servants were not contributing enough given the value of their pensions.Temporary Pensions Levy” and the Additional Superannuation Contribution deducted since 2009
Does the additional monies (millions) deducted from all public and civil servants Salaries re the “Temporary Pensions Levy” and the Additional Superannuation Contribution deducted since 2009 go towards civil servants pensions.
- | PRD Yield |
Year | Amount |
2009 | €837,419,000 |
2010 | €948,605,000 |
2011 | €960,224,000 |
2012 | €934,739,000 |
2013 | €925,986,000 |
2014 | €877,800,000 |
2015 | €875,985,000 |
2016 | €705,998,000 |
2017 | €478,617,000 |
2018 | €522,499,000 |
- | ASC Yield |
Year | Amount |
2019 | €439,440,000 |
2020 | €412,243,000 |
"In general, only schemes for commercial State bodies have a dedicated fund to meet pension liabilities. Schemes in the non-commercial public sector, such as the civil service, local government, education, Gardaí, prison services and health services are financed on a 'pay as you go' basis."
HI. the above was a topic of discussion recently and there was a difference of opinion in the source of civil service pensions already in payment.
One said, they assumed there was a pension fund and the civil servants pensions in payment came from that.
Another said No, that each year, civil servants pensions in payment had the first call on the budget for the year and that it came from the government funds in the same way all other expenditure does.
I have no idea what the correct answer is. Out of curiosity only, can anyone tell me how it works? The scenario being, I'm a retired civil servant who worked in administrative role in the Dept of Transport (just an eg), where does my pension payment come from?
Thank you
The civil servant involved in the discussion said there was no such fund.It worries me somewhat that some civil servants, who are by definition in charge of public administration, think that there exists a public service pension fund.
If it did exist, there would be commentary and debate about its size, asset allocation and annual performance.
There is no such discussion, as it doesn't exist, and yet some staff think it exists??
Nor is there a fund for the State pension, whether contributory or non- contributory
I think a lot of people think their PRSI goes to a fund to pay their future pensions
It’s called a “fund” but it doesn’t invest and if it runs out the Exchequer steps in so it can never be insolvent.There is a Social Insurance Fund (SIF), into which all SI conts are paid.
The fund pays out all SI benefits.
A public servant retiring now on a salary of €70,000 with full service will get a pension for life of €35,000 per year, with increases in the pension, spouse's pension if they die first and a lump sum of €105,000. A private sector employee would need to accumulate over €1 million to get the same benefits. Public servant was only paying the PRD and ASC since 2009.
If it is a co-ordinated pension, which would apply to all civil and public servants since mid 90's. In the example above, The Public Servant if coordinated would get a state pension of aprox 14K
If the Public Servant had full service, they would get a pension of 50% thats 35K. Of that 14K would be paid from the contributory state pension, the remainder 21K would be funded from PRD and ASC.
Based on the current State Pensio n (c€14k) , the capitalised value would be €350k (assuming a modest level of indexation).What's the capital value of the state pension retiring now, Liam?
Come on @LDFerguson - no sensible 65 year old with a one million pension pot uses it all to purchase an index-linked annuity! They might use some of it to do so but would keep the rest in equities to take advantage of superior returns over time. Likewise an ARF passes in full tax free to a spouse while a PS survivor’s pension is reduced by 50%, an ARF can be bequeathed to a child less 30% tax too. Added to this zero flexibility about when and how much to draw down for a PS pensioner - lump sum and pension start the day you retire and no later.A private sector employee would need to accumulate over €1 million to get the same benefits.
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