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disability student
26-10-2013, 08:59 PM
From Irish Ind:

Judges and politicians will be able to keep bumper pensions – despite moves to restrict what ordinary workers can retire on.

Senior public servants are being allowed to build up a much larger pension under complicated changes in the Budget that have gone unnoticed.

The changes mean senior civil and public servants, like judges and county managers, who retire in the next five years will able to retire on pensions of up to €115,000 a year.

Ordinary workers will have a limit of half of this imposed on the size of pensions they can get to qualify under new tax rules. They will have to pay a 'super tax' of 70pc for pensions over €60,000.

The measures were set out in the Finance Bill on Thursday – legislation that gives effect to changes in the Budget. Pensions experts accused Minister for Finance Michael Noonan of skewing the rules to ensure high-earning public servants will be able to keep big pensions entitlements they have amassed up to now.

Most private sector workers will have a cap imposed on them, meaning they will not be able to get a pension that exceeds €60,000 if they are to avoid paying a "super tax" of around 70pc.


President of the Irish Brokers Association John Bissett told Mr Noonan at a conference that the changes amounted to discrimination and inequality.

He said public sector workers were already paid 50pc more than those in the private sector.

"The pension cap does not address this issue as it will take another 40 years to apply in full.

"Senior civil servants who retire in the next five years can receive a pension of up to €115,000 per annum, whereas private-sector workers in defined contribution schemes are immediately capped at €60,000," he said at the Irish Brokers Association annual lunch.

The new pensions cap rules come in from January. But those who have already built up big public service pensions will get to keep the funds in place.

Aidan McLoughlin, of the Independent Trustee Company, said: "Those in the public sector and others in the private sector's defined-benefit pension schemes won't be hit by this restriction and won't see this limit fully applied until January 2054."

Hence the lobby from the Senior civil servants, Politicians and the Judges did well re changes in the Finance bill of 2014.

Need to access Finance bill 2014 cos devil is in the detail. :)

Link: http://www.independent.ie/business/budget/judges-and-politicians-to-keep-bumper-pension-pots-29701816.html

morticia
26-10-2013, 09:30 PM
Yep, that's disgraceful. Hack them now, would be my take on that.

And, despite working for the public sector, I'm afraid I don't understand why they aren't abolishing the lump sums, or at least taxing them at a very high rate.

Money needs to be funneled to the indebted and education, not necessarily in that order, followed by Health and infrastructure. Not already wealthy pensioners who have paid off their mortgages and will use the cash for their 8 long haul foreign holidays a year.

C. Flower
26-10-2013, 10:28 PM
From Irish Ind:

Judges and politicians will be able to keep bumper pensions – despite moves to restrict what ordinary workers can retire on.

Senior public servants are being allowed to build up a much larger pension under complicated changes in the Budget that have gone unnoticed.

The changes mean senior civil and public servants, like judges and county managers, who retire in the next five years will able to retire on pensions of up to €115,000 a year.

Ordinary workers will have a limit of half of this imposed on the size of pensions they can get to qualify under new tax rules. They will have to pay a 'super tax' of 70pc for pensions over €60,000.

The measures were set out in the Finance Bill on Thursday – legislation that gives effect to changes in the Budget. Pensions experts accused Minister for Finance Michael Noonan of skewing the rules to ensure high-earning public servants will be able to keep big pensions entitlements they have amassed up to now.

Most private sector workers will have a cap imposed on them, meaning they will not be able to get a pension that exceeds €60,000 if they are to avoid paying a "super tax" of around 70pc.


President of the Irish Brokers Association John Bissett told Mr Noonan at a conference that the changes amounted to discrimination and inequality.

He said public sector workers were already paid 50pc more than those in the private sector.

"The pension cap does not address this issue as it will take another 40 years to apply in full.

"Senior civil servants who retire in the next five years can receive a pension of up to €115,000 per annum, whereas private-sector workers in defined contribution schemes are immediately capped at €60,000," he said at the Irish Brokers Association annual lunch.

The new pensions cap rules come in from January. But those who have already built up big public service pensions will get to keep the funds in place.

Aidan McLoughlin, of the Independent Trustee Company, said: "Those in the public sector and others in the private sector's defined-benefit pension schemes won't be hit by this restriction and won't see this limit fully applied until January 2054."

Hence the lobby from the Senior civil servants, Politicians and the Judges did well re changes in the Finance bill of 2014.

Need to access Finance bill 2014 cos devil is in the detail. :)

Link: http://www.independent.ie/business/budget/judges-and-politicians-to-keep-bumper-pension-pots-29701816.html


Not the first time these poor souls have been saved. Remember the Christmas Eve move a few years back that protected the same group (which presumably includes Cabinet Ministers) from the chop ?

The Moth
26-10-2013, 10:29 PM
Looks like the pension industry have struck back to counteract Minister Noonans lies. It seems that the estimated savings are less then expected due to politicians and Senior civil servants exempting themselves from the cut. No surprise, these people are consistent not just in their incompetence but in their arrogance.

disability student
26-10-2013, 10:56 PM
Is that one here re you mentioned Xmas?

:http://www.irishtimes.com/news/senior-public-staff-s-pay-cuts-to-be-scaled-back-1.795064



THE GOVERNMENT is to scale back the overall level of pay cuts for top level civil and public servants originally signalled in the Budget a fortnight ago.

In his Budget speech, Minister for Finance Brian Lenihan announced pay cuts of 8 per cent for assistant secretaries and 12 per cent for deputy secretaries in Government departments. He also announced the termination of a performance-related bonus scheme for top civil and public servants which over recent years has involved an average payout of 10 per cent of salary.

The Government has now decided the cumulative effect of both of these cuts on staff in these the grades would have been unfair.

In a circular issued yesterday, the Department of Finance announced revised pay cuts for assistant secretaries and deputy secretaries to take account of the termination of the performance-related bonus schemes.

The department said a similar approach would be taken in respect of equivalent grades in other parts of the public service such as the HSE, local authorities, the Garda and the Defence Forces, where performance-related award schemes had been in operation but which have now been terminated.

In a statement yesterday, the department said: “The Government decided to terminate the performance-related awards for certain Civil Service grades and related posts”.

“The implementation of the pay reductions set out in the Budget without taking account of this decision would have imposed on average a reduction in excess of the reduction for all other public servants [except the Taoiseach]. This was not judged to have been fair to these grades”.

The new department circular on revised pay scales in the Civil Service to apply on foot of the Budget says “it has been decided that the reductions for the grades of deputy secretary and assistant secretary should comprise both a reduction in the salary scale and the termination of the scheme of performance-related awards previously payable to the grades which entailed an average payment of 10 per cent of salary”.

It says the new adjustments will see the pay of deputy secretaries in Government departments fall by 14 per cent, while the remuneration of an assistant secretary will be cut by 11.8 per cent. This means a deputy secretary who up to now received a salary of €177,547 plus an average performance-related award of €17,755, giving a totally of €195,302 will see this figure reduced to €168,000.

Similarly, an assistant secretary on the maximum point of the scale who had a salary of €150,712 plus an average performance-related award of €15,071 (10 per cent) giving a total of €165,783 will see this figure fall to €146,191.

Most staff in the public service earning less than €125,000 will see their salary fall by 5 – 8 per cent under the pay cuts announced in the Budget.

The new department circular says that the new revised pay scales will come into effect from the beginning of January.

The Government has decided that pensions currently being paid to retired civil servants, which traditionally have been linked to the pay of serving staff, will not be cut.

However, the Government has signalled it will review this traditional link in the months ahead.

Holly
26-10-2013, 11:24 PM
In Ireland we have government of the people, by the Cabinet, for the politicians and civil servants.