The Shrinking Pension

Sir, - It really annoys me when I hear Ministers warn about the disastrous effects of pay rises in the public service.

Sir, - It really annoys me when I hear Ministers warn about the disastrous effects of pay rises in the public service.

On March 1st, 1999 I retired after more than 30 years in the public service. I considered myself fortunate that my pension was just below the PRSI threshold and that no PRSI was payable.

On July 1st I considered myself even more fortunate when I received a 1.5 per cent increase in my pension under the terms of Partnership 2000.

However, since my increased pension exceeds the PRSI threshold, I now pay PRSI on the full amount of my pension, as well as more PAYE. Consequently, while my annual gross pension has risen by £169, my annual take home pay has dropped by £110. I am now worse off than before the pension increase.

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I look forward to discussing the inequities of the current PRSI and PAYE systems with the next sun-tanned politician who knocks on my door looking for a vote. - Yours, etc.,

Robert McKee, Norfolk Road, Dublin 7.