Anger at pension plundering
Published 15/05/2011 | 05:00
Sir -- I cannot find words to adequately describe the shock and anger I feel in relation to the Government's plan to introduce a levy on private pensions, a levy to fund the public sector and from which the public sector are to be exempt. A levy of 0.6 per cent per annum over 20 years knocks 10 per cent off the final fund value and therefore off the final private sector pension.
This Government has now decided to penalise those who prudently saved for their retirements in order to subsidise those with some of the most secure and best-paid jobs and pensions in the country. My private sector pension has been decimated while the public sector receives guaranteed upward-only pensions, linked to wage inflation. Wouldn't it make more sense to apply a levy to existing public sector pensioners who have taxpayer- funded pensions that increased in line with boomtime salaries? The C&AG last year showed that public sector pension liabilities are €129bn and increasing. This has the potential to be bigger than the current banking crisis and needs to be tackled now, not facilitated.