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Thread: The Threat of State Pension Cuts - Should We All Have a Living Pension ?

  1. #1
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    Default The Threat of State Pension Cuts - Should We All Have a Living Pension ?

    The Irish Times has obtained a paper written in the Department of Public Expenditure and Reform "as part of the Government's recent comprehensive review of expenditure" -
    A cut in the basic rates of the State pension must be considered as an option to ensure its sustainability, officials at the Department of Public Expenditure and Reform have argued.

    An expenditure review drawn up by departmental officials has expressed strong concerns about the future of expenditure levels on the State contributory and non-contributory pensions, and related universal benefit schemes for older people. It has suggested that, without changes and in the face of demographic pressures, the State could have to provide annual increases in funding of nearly €200 million in these areas up to 2026
    .

    Interesting letter to the IT on how pensions should be paid for

    http://www.irishtimes.com/opinion/le...sion-1.2050591

    Joan Burton says that there will not be pension cuts, but the civil service seems to think otherwise. Joan wants to make the USC permanent and make is a PRSI-like system of saving for pension based on contributions. Not much to say about the want of a Pension Reserve Fund - whatever happened to that. A hugely important issue for everyone who is going to ever be over retirement age - whatever that is - and that is most of us eventually.

    http://www.irishmirror.ie/news/irish...arebar_twitter

    More details of pension rights and "reforms" already carried out, here.

    http://www.politicalworld.org/showth...Fair-or-Unfair

    It strikes me that in the overall scheme of priorities, 200 million is not that much. It would be interesting to compare it without tax-exempt amounts drawn out by private pensioners.

    Cutting pensions also cuts money out of local economies, and most of it recirculates in Ireland.

    Depriving older people of the basic means of life is also extraordinarily socially brutal and decisive. Pensions are already being effectively cut as additional charges and pensions are being imposed without exemption for pensioners.

    Pension cuts have been repeatedly proposed by people like John Bruton, who are mouthpieces for big European capital, and who themselves draw down heavyweight public pensions.

    If we had our politicians depend on public pensions, would they be going up or down ?
    Last edited by C. Flower; 30-12-2014 at 08:55 AM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  2. #2
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    Default Re: The Threat of State Pension Cuts - Should We All Have a Living Pension ?

    Quote Originally Posted by C. Flower View Post
    The Irish Times has obtained a paper written in the Department of Public Expenditure and Reform "as part of the Government's recent comprehensive review of expenditure" -
    .

    Interesting letter to the IT on how pensions should be paid for

    http://www.irishtimes.com/opinion/le...sion-1.2050591
    It is even more interesting to note that the letter was penned by one Padraic Neary ..... but very clearly not the same Patrick Neary who let the beer run down his whiskers ....as the ship of state .... sank!
    "Politics is the art of looking for trouble, finding it everywhere, misdiagnosing it, and then misapplying the wrong remedies.”

  3. #3
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    Default Re: The Threat of State Pension Cuts - Should We All Have a Living Pension ?

    This big lie of the pension 'time bomb' has been floated for many years both here and in the UK mainly. A very small increase the income tax would sort it out - provided the govt can resist the temptation to **** it away again.

    Universal benefits have the drawback that a lot of people who are entitled to them don't need them. So, the alternative would be means testing or taxation. I don't think the former would be acceptable. Depressing posts on the Times FB page. I cant believe people really think scrapping the Seanad or Presidency would pay for all this. But they do. Then again I often meet people who seem quite politically engaged, yes even in Cork North West - until they drop in the clincher : twould all be grand if Micheal O Leary was Taoiseach. At this point I consider forcing my head into a microwave oven and pushing the button....

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    Default Re: The Threat of State Pension Cuts - Should We All Have a Living Pension ?

    Remember the days when the National Pension Reserve was stuffed with cash?

    The National Pensions Reserve Fund (NPRF) was established by the National Pensions Reserve Fund Act No 33 0f 2000 by the then Minister of Finance, Charlie McCreevy. Its intended purpose was to prepare for the ever-increasing pensions bill of the ever-increasing, but ageing, Irish population. The Act stipulated that at least one per cent of gross national product would be committed to the NPRF each year, in addition to the proceeds from the flotation of Eircom. The Act stipulated that there would be no withdrawals until 2025, when it was predicted the demand on the national pension scheme would peak.This 2025 date was initially taken very seriously. In a 2002 election pledge, the Labour Party advocated using billions from the fund to build schools, hospitals and roads, for which it was accused by the other parties of not taking public and State pensions seriously. But Labour lost the election and the NPRF survived and flourished in the boom. Similarly, in 2008, despite the crash, when Minister for Finance Brian Lenihan signalled that he was reviewing payments to the fund due to the State’s mounting deficit, he promised that the fund would not be “raided” to prop up public finances. He pledged, “I don’t succumb to temptations like that.” Michael Somers, the NTMA chief executive at that time, added “future generations will thank us” for the foresight of maintaining “a big kitty”.
    This tune changed less than a year later. In March 2009, the Government used emergency legislation to give €3.5 billion each to AIB and Bank of Ireland from the fund in exchange for ‘preference shares’. Again in 2010, an additional €3.7 billion was gifted to AIB, while on November 28th, the fund was further drained of €10 billion in order to prop up Ireland’s banks. There was no more talk of schools, hospitals and roads, no mention of a NPRF-funded stimulus and definitely no mention of the original plan of the pre-funding of public and private pensions.
    From a total fund of almost €25 billion, just €4.2 billion remained in the NPRF at the end of 2010.
    Fine piece of analysis here from The Law is my Oyster blog.

    http://the-law-is-my-oyster.com/2014...l-to-pensions/

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    Default Re: The Threat of State Pension Cuts - Should We All Have a Living Pension ?

    Quote Originally Posted by Donal Og View Post
    This big lie of the pension 'time bomb' has been floated for many years both here and in the UK mainly. A very small increase the income tax would sort it out - provided the govt can resist the temptation to **** it away again.

    Universal benefits have the drawback that a lot of people who are entitled to them don't need them. So, the alternative would be means testing or taxation. I don't think the former would be acceptable. Depressing posts on the Times FB page. I cant believe people really think scrapping the Seanad or Presidency would pay for all this. But they do. Then again I often meet people who seem quite politically engaged, yes even in Cork North West - until they drop in the clincher : twould all be grand if Micheal O Leary was Taoiseach. At this point I consider forcing my head into a microwave oven and pushing the button....
    Financial Transaction tax on the pension funds who engage in hedge funds and speculative stock trading. Take a portion of the money they earn and ring fence it to pay for other pensions.
    History is the only true teacher, the revolution the best school for the proletariat - Rosa Luxembourg

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