Public sector pension reductions
Tony: I am a retired teacher over 70 with a pension of €34,000 a year. How much worse off am I now than before the budget? I have one son in third-level education.
Tony’s public sector pension will be reduced by the following:
• First €12,000 – no reduction
• Between €12,001 and €24,000 – reduced by 6pc
• Between €24,001 and €60,000 – reduced by 9pc
• Excess – reduced by 12pc
Taking the reduction in Tony’s gross pension in to account, the changes in tax credits and the introduction of the universal social charge, Tony’s net pension per year will be reduced by €2,150.
In addition, if Tony’s son continues in third-level education, Tony will be subject to an additional €500 in student registration fees, which are increasing from €1,500 to €2,000.