Indefinite Levy on Private Funds to fund compensation as per Waterford Wedgewood

skippy2

As reported in the Indo today

"Now it is feared the controversial levy imposed on private pensions in 2011 – and due to end next year – will be extended indefinitely to fund a new compensation scheme for companies that become bankrupt with under-funded pensions plans."

"There will be Blood....." or at least my blood is boiling

The Government and some faceless Public servants have cocked up once again and Edna and his cronies think they can just add another levy onto private Pension funds.. While I have sympathy with WW workers this has nothing to do with Private Pension Funds.

If any Levy needs to be imposed it should be an indefinite levy on Government and Public Sector Pension as these are the ones that have caused this mess..... and now they want to levy private sector pensions, these are the so called experts we have to pay fortunes to ...because they are worth it and weeeee must pay to get the best.... well now they can pay any levy to pay for their cockups.This would be one way of making those responsible pay up. Let us see some fairness and equality on this one Edna.

All private sector pension holders should oppose any suggestion of this with all their might.

Public sector cock-up well you can pay for it from your own gilt edged pension Mr.Edna Kenny. do not try to lump this one on Private sector pension.

As an afterthought Waterford Wedgewood workers would actually be paying a levy on their own pension to compensate for the cockup that the Government made and the award the European Courts of Justice (ECJ) have made in their favour. Might be another interesting case to take back to the ECJ. I would imagine they might find it hard to swallow, that an award made in favour of WW workers ends up in them having to pay a levy to pay themselves their pensions. Only in this Banana republic called Ireland..........run by spent teachers

Scortho

skippy2 wrote: »

As reported in the Indo today

"Now it is feared the controversial levy imposed on private pensions in 2011 – and due to end next year – will be extended indefinitely to fund a new compensation scheme for companies that become bankrupt with under-funded pensions plans."

"There will be Blood....." or at least my blood is boiling

The Government and some faceless Public servants have cocked up once again and Edna and his cronies think they can just add another levy onto private Pension funds.. While I have sympathy with WW workers this has nothing to do with Private Pension Funds.

If any Levy needs to be imposed it should be an indefinite levy on Government and Public Sector Pension as these are the ones that have caused this mess..... and now they want to levy private sector pensions, these are the so called experts we have to pay fortunes to ...because they are worth it and weeeee must pay to get the best.... well now they can pay any levy to pay for their cockups.This would be one way of making those responsible pay up. Let us see some fairness and equality on this one Edna.

All private sector pension holders should oppose any suggestion of this with all their might.

Public sector cock-up well you can pay for it from your own gilt edged pension Mr.Edna Kenny. do not try to lump this one on Private sector pension.

As an afterthought Waterford Wedgewood workers would actually be paying a levy on their own pension to compensate for the cockup that the Government made and the award the European Courts of Justice (ECJ) have made in their favour. Might be another interesting case to take back to the ECJ. I would imagine they might find it hard to swallow, that an award made in favour of WW workers ends up in them having to pay a levy to pay themselves their pensions. Only in this Banana republic called Ireland..........run by spent teachers

If you want the tax payer to cover 90% of a private pension if both the scheme and company go bang, then you should have to pay a levy in return for the new security that your pension scheme now has.
Personally I'd just reduce the tax incentives, but I can see them putting it on as a levy.

chris85

Its a tough pill to swallow to have another levy but this levy is to protect private pensions and in turn is protecting the same pension you are levied on so there is reason behind it.

Also anyone else sick with the usual line with the government causing all this. They were part of some very very bad decisions I agree but does this mean we should levy all public sector workers of which the politicians make a miniscule percentage of compared to our teachers, firemen, guards and so on which had no part in this economic downturn.

Zaph

skippy2 wrote: »

"Now it is feared the controversial levy imposed on private pensions in 2011 – and due to end next year – will be extended indefinitely to fund a new compensation scheme for companies that become bankrupt with under-funded pensions plans."

I'm not sure why people are surprised by this. When has a government ever killed a golden egg laying goose? This is basically a free source of funding for them, so in the current climate there's no way they're ever going to say that they're OK and have enough. I'm an employee representative on the pension oversight committee where I work, and regularly meet with our trustees and fund managers. This is their business and they know it far better than I ever could, and whenever the removal of the levy is mentioned they generally give a wry smile and express their doubts about it happening any time soon. It'll probably turn out like every other "temporary" levy that we've ever had and will still be in place 20 years from now.

techdiver

Can some one explain to me why if a company you work for goes bust, the pension fund of it's workers is affected?

Should the money that employees pay into a pension fund be completely separate from company ownership and thus free from the affects of any company liquidation?

I pay into a fund run by IFG. Surely that fund belongs to the employees and not the company? If not could this not be made so and then in future such issues would not occur?

murphaph

It's a complete balls this.

I worked for 8 years in Ireland for a US multinational. I contributed to the DEFINED CONTRIBUTION scheme for those 8 years and I'll get whatever my fund manager can get from the markets etc. when my time comes BUT the WW pension id DEFINED BENEFIT. Those of us (the majority in the private sector) on DC schemes are now going to be tapped up to ensure a minority of DB pensioners receive an unrealistic pension (unrealistic because the company has failed etc.)

DB pensions are themselves unsustainable (including the state pension tbh) and now the majority (DC scheme contributors) are set to be levied to maintain an unrealistic benefit for the few!!!

They should FORCE these failed DB contributors into DC schemes (IBM did this in the UK a few years ago, there is precedent) and let them cross their fingers with the rest of us that the pension performs. I am actually pretty outraged that my little pension pot is going to be raped again to maintain Waterford (etc.) pensioners in the manner to which they have become accustomed.

homer911

Of course applying a levy to already underfunded DB schemes will hit the employer, not the employee. Those of us on DC schemes would be (a) personally and directly impacted and (b) are not at risk of "underfunding" by the employer and (c) are already suffering from significantly lower pension rights than those on DB schemes - hardly an equitable solution!!

Never mind the fact that DB scheme members are either in secure long term employment, or are the older members in society. Many of those in poorer DC schemes are also in negative equity on mortgages!