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PS workers getting "double credit" for pension levy (a cut and pension contribution)

  • 05-12-2009 3:17am
    #1
    kangaroo
    Registered Users, Registered Users 2 Posts: 651 ✭✭✭


    (Apologies if this has been pointed out lots of times before but it's something I've noticed in some conversations I've heard)

    I think that people should realise that either the pension levy is:

    (i) a contribution to one's pension (i.e. for the sort of pension most private sector workers aren't offered these days as they are so expensive for the employer)

    or

    (ii) the pension levy is a pay cut.

    It is not both simultaneously a contribution to one's pension and a pay cut.

    If it is a pension contibution, then PS workers generally haven't taken a pay cut (despite many/most (?) getting not one but two pay increases in 2008: 2.5%@1-3-2008 and 2.5%@1-9-2008 http://www.education.ie/servlet/blobservlet/cl0106_2008rates.xls).

    If if is a pay cut, then one can't simply compare the current salaries between public and private sector workers as the PS pension is so much better without a proportionately bigger contribution from the PS employee.


Comments

  • #2
    The_Honeybadger
    Registered Users, Registered Users 2 Posts: 4,219 ✭✭✭The_Honeybadger


    kangaroo wrote: »
    (Apologies if this has been pointed out lots of times before but it's something I've noticed in some conversations I've heard)

    I think that people should realise that either the pension levy is:

    (i) a contribution to one's pension (i.e. for the sort of pension most private sector workers aren't offered these days as they are so expensive for the employer)

    or

    (ii) the pension levy is a pay cut.

    It is not both simultaneously a contribution to one's pension and a pay cut.

    If it is a pension contibution, then PS workers generally haven't taken a pay cut (despite many/most (?) getting not one but two pay increases in 2008: 2.5%@1-3-2008 and 2.5%@1-9-2008 http://www.education.ie/servlet/blobservlet/cl0106_2008rates.xls).

    If if is a pay cut, then one can't simply compare the current salaries between public and private sector workers as the PS pension is so much better without a proportionately bigger contribution from the PS employee.
    @kangaroo you are gonna annoy a whole lotta people bringing this subject up again. I do however think it is both in a way. It was an average of a 7.5% contribution of gross salary, however most PS forget to mention it is tax deuctible so actual contribution is about 4%. It is a pension contribution but the government introduced it to cut pay so thats why I think it is both. I do think as well that many PS workers greatly overstated how much it effected their pay in my experience to garner sympathy, some that I know saying they were down 200-300 a week which was total bulls**t, they also had to pay the extra income and health levies but they effected evrybody. A guard for example on 60,000 a year would have lost about 40 euro per week through the pension levy, and another 40 through the other levies (which affected both public and private). That was a pretty severe kick up the ar*e for someone who may be the only income earner in the family so it is little wonder it was such a big issue at the time, however it must be acknowledged that they received big increases in previous years. If the Irish Times is to be believed they are in for a further 5-6% next week so get ready for more strikes.

    www.taxcalc.eu


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