Public service pensions
A chara, – Bernadine O’Sullivan (November 17th) makes the extraordinary claim that in 2009 public servants made pension contributions of €3.1 billion and that since then the pension levy has added €2 billion to their annual contribution, whereas only €2.6 billion was paid out that year.
Your readers should check the report, Analysis of Exchequer Pay and Pensions Bill 2007 - 2012, on the website of the Department of Public Expenditure and Reform. This analysis relates to the combined total of civil service, health, education, Garda Síochána and defence forces, but excludes local authorities. It shows that in 2012 pension contributions will total €536 million, pension-related deductions (levy) €930 million and payments €2,502 million. A very different picture than painted by Ms O’Sullivan.
She is also incorrect in her remark that “since 1995 public servants are getting the same for more” in relation to the integration of public sector pensions with the State pension. The reality is that PRSI contributions were increased, but pension contributions decreased, at that time for those affected. – Yours, etc,