News Irish News

Sunday 18 March 2018

Now public servants won't pay more for pensions

€720m State take from levy unlikely to rise

Stock photo
Stock photo

Anne Marie Walsh

Public servants will not pay any more than they currently do for their lucrative pensions in a new deal with the Government.

Sources revealed any amount they will be asked to pay into a new permanent contribution will not surpass the €720m currently being paid under a pension levy.

The Government is likely to agree that the pension levy - introduced under emergency legislation in 2009 - is phased out at talks to extend the Lansdowne Road deal.

Instead, it will ask its employees to pay a higher permanent contribution that would include their existing contribution.

There was mounting speculation that those with gold-plated benefits could end up paying more than they currently do in existing contributions and pension levy payments.

But senior sources revealed that the contribution is unlikely to exceed the €720m currently paid in a levy. Unions do not expect Government officials to look for more than the levy, which averages 5pc of wages.

The most likely scenario is that the Government will only end up with a portion of the current value of the levy when a deal is struck. The source predicted no public servant would suffer a cut in remuneration as a result of any deal.

Irish Independent

Today's news headlines, directly to your inbox every morning.

Editor's Choice

Also in Irish News