This came up in another thread.
One would think once you retire you no longer pay a pension deduction as you are now not working & instead are drawing down your pension, for which you have spent up to 40 years paying into.
According to this document from Dept of Finance (link at bottom), the PRD is not paid by Civil & Public Service Pensioners on either their pension or their lump sum.
Exemption Marker for Individual Employees
An indicator to allow individuals to be marked as exempt from the Pension Related
Deduction will be required. The main group who are exempt are pensioners, as
neither lump sums nor pension payments are subject to the Pension Related
Deduction.
Taken from: http://www.finance.gov.ie/documents/publications/other/2009/pensionreldedeductions.pdf
Maybe we are all a bit confused between the various deductions imposed on Public Servants.
1. Pension Levy: only paid by working Ps and Cs - ranges from 5% to 9.6%
Slim
2. Pension deduction: Paid by PS and CS Pensioners - from 4 -6 % I think.
Slim
Im confused ! Are public and civil servant pensioners experiencing deductions (relating to the economic crisis) or not?
I suspect this is not correct but am open to persuasion. Perhaps Slim meant paid by PS and CS employees?2. Pension deduction: Paid by PS and CS Pensioners - from 4 -6 %
Still confused!
Slim stated :
I suspect this is not correct but am open to persuasion.
So if your a "ninety year old nun" (to use as an example) who retired as a principal do you have a deduction / reduction in your pension over and above the deductions (usc etc) levied on private sector pensioners?
I may be able to help.
The pension levy on WORKERS was introduced first.
Officially known as the PRD.
In the last Budget, the Govt announced a cut to PS pensions.
However, the gross pension was not cut (I don't know why not).
Instead, the cut has come in the form of an extra deduction on the payslip.
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