State Pensions bill estimated to be €9.2 billion in 2010

Citizen_Cutback

The Irish Times has run an article entitled "Government will have to cut old-age pension" where it states that "the total estimated bill for pensions is very large, at €9.2 billion in 2010, representing one euro in every six spent by the exchequer."

There has been much commentary about the estimated Net Present Cost of €110 billion for Public Sector Pensions if all those pensions were to be funded now as to be of the fully funded defined benefit type.

However, the current actual cost to the Government of funding Public Servant Pensions is approximately € 8,500 per pensioner for approximately 120,000 retired Public Servants which is approximately (but less than) €1 billion. (Reference will be added as an edit). The other element of this figure is paid by current Public Servants with their Pension deductions bringing total retired Public Servant pension payments up to €2.8 billion.

250,000 people receive the Contributory Retirement Pension with another 100,000 receiving Non Contributory Retirement Pensions of approximately €12,000 per annum at a total cost of €4.2 billion.

At most the payout of all State pensions cost €7 billion gross or €5 billion net allowing for Public Servant contributions?

Does anybody know where does the figure of €9.2 billion come from?

Nemi

Citizen_Cutback wrote: »

Does anybody know where does the figure of €9.2 billion come from?

I don't, but does it include the contribution to the National Pensions Reserve Fund?

gurramok

Wow, state pensions cost 4.2bn and public sector ones 2.8bn. Never knew it was that high before.

What were the old age pension rates in 2006 for example? Did it skyrocket since then like the dole did?

Geuze

From www.welfare.ie

In 2008:

• Expenditure on State Pensions increased by 10.9% to €4.3 billion. Payments were made to over 364,000 people in this area.

hiorta

A substantial lump of that pot will be paid in by the pensioners themselves via various taxes, including the iniquitous VAT.

cyclopath2001

Nemi wrote: »

I don't, but does it include the contribution to the National Pensions Reserve Fund?

Isn't that now: "The Banks' Bailout Fund"?

Riskymove

Nemi wrote: »

I don't, but does it include the contribution to the National Pensions Reserve Fund?

they are currently raiding that fund not contributing to it

cson

hiorta wrote: »

A substantial lump of that pot will be paid in by the pensioners themselves via various taxes, including the iniquitous VAT.

That's not an argument to be honest.

VAT is paid by everyone.

ravensswoop1

The Irish times started the ball rolling on this one. The letters page carried some good refutations. See my blog here : http://laceratethesoul.blogspot.com/