Wednesday 25 April 2018

James Fitzsimons: Government keeps robbing us, and nobody shouts 'No!'

Defined Benefit pension schemes are a ticking time bomb – and must be defused, writes James Fitzsimons

James Fitzsimons

Pensions are becoming the worst best option for savings and investment as the Government shirks its commitments.

Irish public servants have the best pension arrangements on the planet. The lower paid are just adequate, but they are 10 times better than their private sector counterparts. Middle-ranking public servants have good pensions. But senior public servants have pensions that you couldn't buy for love nor money and they don't even pay for them. They pay something now, but it's not nearly enough.

They should have been cut out long ago and certainly when the financial crisis began. For the previous decade they doubled their pay, they fabricated discretionary bonuses and when the recession hit, they converted these "so-called" bonuses into core pay. They were cushioned when the rest took cuts.

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