Pension Levy but no Pension?

D

decsramble

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I searched and couldnt find an answer to this anywhere so I thought I'd ask.

My girlfiend works in a HSE related organisation. Despite that she does not have a pension, silly of her I know but she was told she would have to look after her own private pension and then, well, didnt. Leaving the silliness of not having a pension to one side, she and her work collegues were just told this morning by their salary dept that they have to pay the pension levy.

Does anyone know if this can be true? She has to pay a levy to fund a pension she doesnt have and was previously told she was not entitled to? There is so much confusion about the levy that it's possible the salary dept is just confused or possibly just being lazy and applying the levy to everyone regardless of pensions.
 
Nobody knows yet. And most certainly not the government which announced the introduction of it without working on any details whatsoever of the proposal. You can't blame the salary department in this case - they can't be expected to know the unknown.
 
I'm in the same boat...I have my own private pension, so opted out of the uni pension. But again, I've been told by finance that I would have to pay the pension levy too, even though I'm not in the pension scheme. I think this is going to have to be clarified quickly as I'm sure there are more people not paying into the pension.
 
Common sense should dictate that a pension levy can't be applied if there is no pension in place.

Get onto your union.
 
Where I work, the pension levy applies to ALL, even those not in the pension scheme yet.
 
Eamon Gilmore said something similar on the radio this lunch time, everyone has to pay even if they dont have a pension. What a total rip off.
 
Where I work, the pension levy applies to ALL, even those not in the pension scheme yet.

Also people earning overtime and other non pensionable incomes have to pay the levy on them, not bad as people who aren't even in the pension scheme but still unfair.
 
Where I work we liaising with Agencies, similar queries have arisen. I think it would be fairer to call this a wage cut to be honest but yes even if you have not entered into a government pension and are paying full prsi you will have to pay this levy anyhow.
 
Think about this:
Sooner or later all PRSI workers may be levied & you could be caught twice.
If they then decide not to double levy you at that time, you could be caught out when you go to claim your PRSI benefits/pension.
We need a very clear statement from them on this.
 
As has just been mentioned in another post, the bill has been published and it looks like if you are not entitled to the public service pension pension then you dont have to pay the pension levy. My girlfriend is going to check with the accounts dept.
 
Was there any clarification here? Do you have to pay if you have no pension. My husband is in teh same boat.
 
im paying into the pension scheme. can someone explain to me what this levy is all about? what is it used for? :confused:
 
thanks protocol i got that much out of this thread :p
but what i meant is - what is it used for? what's the explaination/ justification given in the latest budget announcement for paying it?
i know in other european countries you pay this levy as part of a general pension pot i.e. elderly people who might need financial support. is this pension levy in ireland used the same way or is it yet another way to make up these 2 billions? just wondering....:)
 
It is added to the tax you pay and used for general govt expenditures.

So it will reduce how much the Govt borrows.

It is NOT put into "a pot" to pay future public pensions.
 
The "justification" is that public pension are generous, and so public service workers need to pay more for them.
 
In an interesting turn of events, I remember being told years ago that I could earn a lot more money in my field if only I took a job in a private company. I had chosen public sector because I liked the job and the security that came with it. I 'paid extra' for those things by not going after the higher paying jobs. Now people - and the same person are shouting that I should be penalised for those things and so am now going to be 'paying' twice.
 
I know and believe me, I don't think anyone should have to go through all this and as a regular worker with no overtime/allowences etc, I'm nowhere near being on millions. My point was that I traded higher pay over the years for job security (and of course, it was a job I liked and wanted) when I chose the job. If I had gone private sector, I would have earned a lot more but I would also have chosen the option of a more volatile job market and the various terms and conditions that go along with that. Now, I feel double targeted because of all the hate that isn't based on fact.

To keep the thread on subject, it also looks like I may be paying the levy but not getting a public sector pension....we do have a pension fund that we have always paid into but it appears to be locally managed rather than being the 'public purse' one that everyone is talking about. All to be cleared up when it actually hits, I know :)

Unfortunately, I don't know what the answer to the country's woes is either :)
 
..... it also looks like I may be paying the levy but not getting a public sector pension....we do have a pension fund that we have always paid into but it appears to be locally managed rather than being the 'public purse' .......

There are some other threads on this already.

A huge part of the public sector is not affected at all by the public service pension levy. (ESB, Bord Gais, RTE, CIE etc) All of these have their own local pension arrangements which are not funded from the public purse.

Can you clarify whether you are working in the public service or in one of these commercial semi state public sector organisations?

aj

Bodies to which the definition of “Public Service Body” does not apply

1. Any body corporate established by Act of Parliament before 6 December 1922 that, upon its establishment, was of a commercial character.
2. Dublin Airport Authority, public limited company.
3. Cork Airport Authority, public limited company.
4. Shannon Airport Authority, public limited company.
5. Bord Gais Eireann.
6. Bord na gCon.
7. Bord na Mona.
8. CIE
9. Coillte Teoranta.
10. Electricity Supply Board.
11. Eirgrid.
12. A harbour Authority
13. Horse Racing Ireland.
14. Irish National Stud Company Limited.
15. Irish Aviation Authority.
16. An Post.
17. An Post National Lottery Company.
18. RTE
19. Teilifıs na Gaeilge.
20. Railway Procurement Agency.
21. Voluntary Health Insurance Board.
22. A subsidiary of a body to which this Schedule relates, including a subsidiary of any such subsidiary.
 
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