Sir, – Pat Leahy writes that “workers in receipt of a full public service pension who have completed 40 years´ service are in most cases entitled to a pension of 50 per cent of final salary” (Front page, December 16th).
In fact public service staff recruited since 2013 get a pension based on career average earnings, not final salary. Furthermore, all staff recruited since 1995 pay full PRSI and receive part of their pension via the State contributory pension and not via an occupational pension.
Public sector employees also now pay very significant amounts towards their pension. The Pension Related Deduction (PRD) introduced as a temporary measure in 2009 has been replaced by a permanent Additional Superannuation Contribution (ASC) levied at 10 per cent on incomes over €34,500 and 10.5 per cent over €60,000 for those on the pre-2013 scheme; the equivalent figure is 3 per cent and 3.5 per cent for the new scheme. Research carried out by Trident Consulting on behalf on the teaching unions found that under the new arrangements proposed in 2010, “the value of member contributions will exceed the value of the benefits that they will receive”.
The value of public sector pensions has been significantly reduced and contributions levied on staff increased over the past decade. – Yours, etc,
DONAL MCGRATH,
Greystones, Co Wicklow.