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Im guessing you mean they already pay 6.5% into a pension pot. The thing is however, for example I pay into a pension pot. now if we both pay 6.5. I'm at the mercy of the market as to what I get back and after being through 3 stock market crashes in 20 years (.com bust, 9/11 and now) I can assure you I've lost a lot of the paltry pension I have. The public sector worker on the other hand has a guaranteed payout regardless of stock market conditions. I think thats worth the extra 7%
it has to do with it in the fact that the pension has to be paid for from public funds. Funds which are incapable of meeting the bill. Ergo, the levies and cuts and tax increases etc that we are all facing in one way or another.
Your taxes don't contribute a cent to current PS workers future pensions.
You keep saying that and people keep pointing out that it doesn't make any sense. PS pensions are funded out of current income so the levy should go into the current income pot.Maybe so if the 7% went into the pension fund which it doesn't
No you wouldn't.I don't have a pension at all and but if I was putting 13.5% of my wage into the post office for 40 years would I be better off.
The public sector has, in broad terms, benefitted from the boom far more than the private sector so it is fair and reasonable that those who benefitted most should be looked at as part of the solution. Add to that the fact that their employer doesn't have the money to pay them (or access to the money either).I have met a few PS workers and they all say the same thing they are not prepared to be a soft target every time this govt makes a dogs dinner of the economy.
Maybe so if the 7% went into the pension fund which it doesn't
I don't have a pension at all and but if I was putting 13.5% of my wage into the post office for 40 years would I be better off.
I have met a few PS workers and they all say the same thing they are not prepared to be a soft target everytime this govt makes a dogs dinner of the economy.
You keep saying that and people keep pointing out that it doesn't make any sense. PS pensions are funded out of current income so the levy should go into the current income pot.
I doubt it. lets take a crude example. Say a ps worker on 40k (no jokes please!) average over the 40 years
13.5% is 5400 pa.
assuming inflation and DIRT negates the interest after 40 years you would have 216000 in the bank. Assuming you budget for 20 years and expect to die at 85 you'd have just over 10k pa to play with, or put another way, a final salary percentage of 25% Whats the public sector final salary%?
Say what you like but this pension money comes from the government via the pension levy.
ah, so the argument is now changing to "not my fault"...
Mea culpaRubbish; the national pension reserve fund was set up to plug the 100 billion euro public sector pensions deficit.
Any PS worker feeling hard done by should contact a broker advising the details of their pension and find out how much it would cost them if they were to make their own pension arrangements.
Better still, form a lobby group, protest, and demand that they be allowed to make their own pension arrangements - I don't think there would be too many volunteers.
I think its clear that the 13.5% contribution you are talking about comes nowhere near paying for that pension provision.My understanding is if you are in the PS for the full 40 years you get 1.5 years lump sum and then 50% of your wage after that.
really? its the point you made earlierDon't know because I'm not a PS worker
see, not their fault, didn't do it, won't pay for it. ... you said it...I have met a few PS workers and they all say the same thing they are not prepared to be a soft target everytime this govt makes a dogs dinner of the economy
Not me anyway. I joined the Public Service more than 10 years ago. The wages were not great at the time but I wanted the job security and the pension looked decent. Now it looks like I made a good choice. The Government should draw a line under present pay and conditions for PS workers and introduce a new deal for new entrants, for whenever a slimmed down PS resumes filling posts that become vacant....any takers?
I doubt it. lets take a crude example. Say a ps worker on 40k (no jokes please!) average over the 40 years
13.5% is 5400 pa.
assuming inflation and DIRT negates the interest after 40 years you would have 216000 in the bank. Assuming you budget for 20 years and expect to die at 85 you'd have just over 10k pa to play with, or put another way, a final salary percentage of 25% Whats the public sector final salary%?
1 that the pension levy has nothing to do with pensions
2 the PS get nothing extra for paying this levy
Do you accept that the pension levy does not increase your pension when you retire?
Don't know because I'm not a PS worker
Current public sector workers are worried that because the money they contribute is being used to pay the above mentioned people today instead of being put in a ring fenced pensions scheme, there will be no money left when they reach retirement age.
Pension levys and pay cuts dont help either - wipes out any disposable income that could be put in a privately purchased pensions scheme. A lot of public sector workers I know have attempted to start private pension schemes in recent years (where income permitted).
I've asked them why, given that they have a guaranteed pension. The answer has always been that nothing is guaranteed when you are at the whim of a bunch of gombeenman politicians who have already spent your contributions and can totally wipe out you pension at the stoke of a pen.
Your not a public service worker, wonder how people got that idea... Is someone close to you one??
well, we're all taking pay cuts. I've had a 5% cut, on top of that I've had my shifts cut. On top of that we've had tax /paye/whatever rises. My wife's lost her job. All in all, we're down about 20k pa. So its a bit hard for me to feel sorry for those in the public sector that get "absolutely nothing extra" for their cuts. I got absolutely nothing for mine except the fun of trying to run a household on 1 income while my wife struggled, in vain, to get the doleMaybe he's just a private sector worker with a balanced view???
The point SLF is making is that Public Sector Workers get absolutely nothing extra for their pension levy that they weren't getting before. It is a pay cut by another name.
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