public sector pensions

lasalle · 09-04-2012 6:55pm #1

Are public sector pensions tax free?

Just trying to settle an argument quickly!

barneystinson · 09-04-2012 7:09pm

Yep, they're PAYE income.

lasalle · 09-04-2012 8:04pm

would paye not imply that they are in fact taxable rather than exempt?

namenotavailablE · 09-04-2012 9:11pm

Not sure what barney [who is usually spot on about matters] meant- they are definitely taxable :-)

However, all persons over 65 [whether receiving a PS pension or income from other sources] may qualify for tax exemption if their total income is below certain thresholds (currently €18000 for a single person/ €36000 for a married couple) in which case the pension may effectively be tax free.

barneystinson · 09-04-2012 9:36pm

namenotavailabl wrote: »

Not sure what barney [who is usually spot on about matters] meant- they are definitely taxable :-)

However, all persons over 65 [whether receiving a PS pension or income from other sources] may qualify for tax exemption if their total income is below certain thresholds (currently €18000 for a single person/ €36000 for a married couple) in which case the pension may effectively be tax free.

Ah sorry, I was saying yes it's taxable, instead of no it's not exempt!

impega1 · 09-04-2012 9:44pm

PS pensions are subject to both PAYE and USC also those retired on or before 1 March 2012 are subject to the public sector pension reduction. Retirement lump sum payments in excess of €200k are tax free and in excess of that are taxable at 20%.

As with any occupational pension class M PRSI applies

public sector pensions

Comments