Unfair pension levy/ local authority outdoor staff

[barneyjoe]

As an outdoor employee in a local authority.

I feel the pension levy is implemented unfairly. The different pension arrangements for the various public sectors are not taken into account.

Today I spoke to a 61 year old man who inquired about his pension as he was starting to run into bad health. He had 32 years service and was told if he retired now he would receive 36,000 euro and 85 euro a week. This is in stark contrast to the entitlements of other sections of the public service.

I earn 36,000 a year and pay 47 euro pension levy on top of my superannuation, I also pay class A PRSI. I will have 35 years service at the most and will end up with similar pension entitlements to the above.

The different pensions for outdoor/indoor staff in the local authority should come into consideration when calculating your pension levy.

 

[ajapale]

In what way do the pension arrangements for local authority employees differ between indoor and outdoor employees?

Is the essential difference between hourly paid employees and employees on an annual salary?

Is it a different scheme?

 

[Evening]

All indoor staff who commenced prior to the 6th April 1995 are PRSI Class D. Essentially they will receive all their pension from the LA.
All outdoor staff no matter when they started with LA and indoor staff who commenced since the 6th April 1995 are PRSI class A therefore their pension is made up between the state pension and pension from LA.
It should be pointed out that PRSI class D employees are entitled to very few benefits from the state.

The pension levy in reality was a crude mechanism to implement a pay cut.

Barneyjoe, if your friend retires now he should qualify for 1 year's unemployment benefit. After that if he is not working or receiving any other social welfare, he would qualify for an enhanced pension from the LA until he receives the state pension at 65/66.