Some people will pay the pension levy, but receive no occupational pension

[Protocol]

It is interesting to note that low-paid public sector workers, e.g. 20k, 22k, will pay the pensions levy, but they will not receive an occupational pension from their employer.

Example: 22k

Pension levy payable = 950 pa

Pension benefits:

Lump-sum = 1.5 times wage = 33k

Pension = 0.5 times (22k - 2OACP) = 0.5*(0) = nil pension

 

[orka]

How much are they currently paying towards the lump sum?
What sort of job would have someone retiring on a salary of 22K after 40 years of service? I know there are non-civil service employees earning less than a CO but, for example, a CO starting at 24K will have been incremented up to 35K+ by the time they retire after 40 years.

 

[peno]

They do receive a pension benefit in the form of a lump sum.

The levy is for pension benefits i.e. lump sum and annual pension.

 

[caminowebmas]

can anyone tell me - do you still pay the levey if you are a public sector worker but not in the pension?

 

[Slim]

It is interesting to note that low-paid public sector workers, e.g. 20k, 22k, will pay the pensions levy, but they will not receive an occupational pension from their employer.

Example: 22k

Pension levy payable = 950 pa

Pension benefits:

Lump-sum = 1.5 times wage = 33k

Pension = 0.5 times (22k - 2OACP) = 0.5*(0) = nil pension

It's complex at lower pay levels. According to HSE, officer on €25k, retiring after 40 years service, Class A prsi(post 1/1/2005) will get a pension of €5,000 p.a. Quote: "revised integration formula used where earnings are less than 3.333333 time state contributory pension".
€30k = pension €6k
€35k = " €7k
€40k = " €8,348 (= .5 final salary - 1*SCP) and so on. Only deduct 1 * SCP

Hope that clarifies. The officer on €25 will pay €1,250 additional levy.

It's a disgrace!!