Pension Levy Adjustments

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kceire

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Has anybody seen or heard of the details of the pension levy adjustments announced in the budget the other day?

Minister Lenihan said he was adjusting it to spread the fairness as such?
 
I think they are just adjusting it for the lower paid civil servants.
Its just like the last 2 budgets, they make all these great statements and give no
details !
 
Changes as follows:

€0 - €15000 : exempt (was 3%)
€15001 - €20000 : 5% (was 6%)
€20001 - €60000 : 10% (was 10%)
€60001 and above :10.5% (was 10%)

I found this online (I think the DoF website) on the evening of the budget, but can't find the link just now.
 
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Would it help your blood pressure to point out that that €24K is made up of €11K SW pension, and €13K actual pension.
Also the levy is on top of the 6% that they were already paying.
 
Hi Yellow Belly,

An oft overlooked element of the comparison between public sector pensions and their private sector counterparts is the state provided, *guaranteed* contributory pension which all private sector workers will receive at 66 for a modest PRSI payment while working. This guaranteed pension currently stands at approx €11k per year, and recieves annual increases. A public sector worker contributing a similar amount of PRSI will qualify for a guaranteed ZERO contributory pension.
Only when this is fully factored into the figures can a reasonable comparison be made between the merits and benefits of the different pension types.

Having said all of that, there are loads of other threads dedicated to criticising Public Sector pensions - this one simply asks for the amended details, post supplementary budget, of the PS pension levy and I have provided them for the OP, so we should probably take this piece up elsewhere.
 
thanks guys.

Yellowbelly, personal issues is this way------------------------------------>
please learn the facts before you attemp at a rant you know nothing about.
 
Yellow Belly, can I just add that I have worked in the private sector and the public sector with exactly the same type of employment, when I moved to the public sector my salary was halved I no longer got Christmas bonus or a bonus because i worked very hard last year, there are alot of people in the private sector who made alot of money in the past 10 years, most public servents did'nt, I took the job so that I would have more flexible working hours and a small pension
 
the PS pension is made up of the standard free for all state pension of 230 per week (11,960 per year), and on top of this i will get 153e, to make a pension of 20k per annuam (half salary), so only 20000-11960=8,040 is made up of my PS pension contributions of 13.5% of salary.

so lets say tou retire from the private sector, you still get your free for all state pension of 11,960 per year and what ever you put towards a pension yourself, just like the 13.5% we pay.

if your gripe is because you didnt open a pension, then its your fault, nobody elses. i still insist that you make your way to personal issues as the keyboard hard man is old new now.
 
To clarify that both the poster who said that public servants get a zero contributory state pension and the poster who said public servants get the full state pension are both right, depending on how you look at it.

To describe it correctly is to say that public sector pensions for anyone employed since April 1995 are integrated with the contributory state pension. This means that a retiring public servant gets their occupational pension from their employer less the contributory state pension amount. The contributory pension is then claimed from DSFA, the same as it is for all workers who pay PRSI as appropriate. Public Servants therefore do not benefit on the double.

The same does not apply for civil servants employed pre-1995. They get a full occupational pension from their employer but cannot claim the state contributory pension, or any other social welfare benefit which is dependant on PRSI contributions, e.g. dental benefit

In response to the point re the lower contributions paid by public sector workers, no one is denying that private pensions are very expensive. Don't forget however that you can claim generous tax relief on the contributions. If you are not happy with your pension, don't blame the whole public sector - shop around for a better deal or reconsider how to invest for your future. No need to begrudge those who have reasonable pension arrangements in place.
 
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