J
joejoe
Guest
pension is only one element of the public sector employee costs, what about the other costs, expenses and such like?
Joejoe
Joejoe
pension is only one element of the public sector employee costs, what about the other costs, expenses and such like?
Joejoe
You take a low paid public servant who received 50% of salary of 30k per annum = €15k. The COAP is 12k, so they pay 6.5% of their annual salary for 40 years i.e. 78k in total, in order to get only 3k net in return. They would need to live for 26 years post retirement for the government not to make a profit out of them. As life expectancy in this country is c.78 i.e. 12 years post retirement, the government is in profit out of these contributions.
Csirl,
a low paid public servant on 30k would not pay 6.5% on all salary.
How it works is as follows:
They pay class A PRSI, same as everybody else, and will get a OACP.
Then they pay a contribution towards their occupational pension, as follows:
1.5% of gross for lump-sum = 37.50 pm = 450 pa
5% of adjusted gross = (0.05)(30000-24000) = 25pm = 300pa
So they would pay 750pa towards their occupational pension.
Over 40 yrs they pay 30k.
Why they pay so little is due to the integration.
The benefits
Lump-sum = 45k.
Pension = (0.50)(6000) = 3000pa + 12k OACP = 15k
So they pay PRSI + 30k in pension contributions, and receive 45k + 15k pa.
Overall point: with an integrated pension, both your contribution and your benefit is reduced, due to the OACP
How much is factored in for the fact (up until now) that they will never lose their jobs?
How much is factored in for the fact (up until now) that they will never lose their jobs?
Post 95 civil and public servants pay as follows:
1.5% of gross for lump sum
1.5% of gross for spouses and children
3.5% of net adjusted gross salary, i.e. salary - 2*OACP.
My sums earlier may not be 100% correct, but I stand by what I said:
Due to integration, you pay in less and receive less.
How would you factor that?
How would you factor the risk of losing your job?
I never anaThe Govt has squandered the boom, failed to save for a rainy day and its now raining. The real problem is the decreasing tax take. Which is a catch 22 problem.
I'm interested where that figure comes from too. Especially since the total public pay bill (for pay and pensions) for 2008 is €18.8bn, or in or about 40% of current public sending, i.e. not including the capital budget.Where did you get 20 billion figure from?
Why historically does the public sector have a govt funded pension anyway?