I'm perfectly well aware that it is not to plug a hole in the public service pension system - but that's because it's all on an unfunded pay as you go basis. As such the question of deficit does not arise - but every single pensions expert, from the public or private sector, can tell you that the contribution civil and public servants make towards their pensions would not be adequate to fund such pensions. Rather out-of-date, but still informative, is this paper:Where's the evidence that the current superannuation system is in deficit? By how much? Why do contribution rates need to be more than doubled? The truth is that the levy is not designed to plug an unquantified funding hole in the public service pension system, it is simply a method of achieving the €2bn current budget narrowing to which the government arbitrarily committed itself.
Given that public sector workers are suddenly paying more than twice as much in contributions to their basic pensions and
In fact I am paying for NSP - so, to me the argument re the relative value of standard superannuation versus NSP (now that the levy has been imposed) is not relevant i.e. I made my mind up that NSP was right for me a couple of years ago and, given that it now costs as much as it ever did, I'm not going to change my view (unless they find some way of increasing the cost of NSP to me.from this I'd hypothesise that you aren't actually purchasing service, since you'd then realise how much more expensive this cost-neutral buy-back is than standard contribution rates.
It doesn't fully apply in this case since good A is not substitutable by good B. Given that good B is substantially more expensive anyway, it just looks relatively less more-expensive, rather than actually less expensive. And since the price of the mandatory good A is increasing, leaving people with less by way of disposable income, I think it's a good bet that uptake of NSP will decrease, rather than increase.But the cost of purchase of actual years has now more than doubled with no increase likely (in the short term) in the price of buying notional years. This makes NSP seem like a better deal.
Value is always a relative concept - if good A doubles in price and good B stays at the same price then good B is now better value.
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