Great pensions stitch-up begins
The framework for pensions announced by the Government this week once again bears testimony to the widening gulf between those privileged to work in the public sector and those who are struggling to survive in the private sector.
Any hope of genuine leadership being shown in tackling the timebomb that is the grossly over-promised levels of unsustainable retirement benefits to civil servants has been dashed and replaced with another assault on the general working population and their employers, who have to fork out even more levies in the form of mandatory contributions.
I am incensed. This so-called framework is tantamount to a frame-up of private sector employers and employees.
The compulsory 4pc contribution being taken out of employee salaries attracts no personal tax relief. The 2pc contribution from employers is compulsory and amounts to a further tax on employment.
The 2pc contribution from government represents a double hit on the employee as, in reality, taxpayers are paying for this. It is not a free gift.
The total, 8pc, is going to the NTMA. This is the slush fund the Government of the day can rifle to bail out banks and use to fund new quangos like NAMA!
So there you have it. This initiative to sort out pensions for the ordinary mortals who reside outside of the cosseted ranks of the civil service will put businesses under even more pressure through additional tax on jobs, drive competitiveness downwards through increased wage demands to counteract the 4pc employee levy and leave everything to chance as we roll the dice by swelling the coffers of the NTMA to cushion future consequences of inept economic management.
Welcome to the great pensions frame-up.
Barry J Coleman
Terenure, Dublin 6W