It is interesting to note that low-paid public sector workers, e.g. 20k, 22k, will pay the pensions levy, but they will not receive an occupational pension from their employer.
How much are they currently paying towards the lump sum?
What sort of job would have someone retiring on a salary of 22K after 40 years of service? I know there are non-civil service employees earning less than a CO but, for example, a CO starting at 24K will have been incremented up to 35K+ by the time they retire after 40 years.
It is interesting to note that low-paid public sector workers, e.g. 20k, 22k, will pay the pensions levy, but they will not receive an occupational pension from their employer.
It's complex at lower pay levels. According to HSE, officer on €25k, retiring after 40 years service, Class A prsi(post 1/1/2005) will get a pension of €5,000 p.a. Quote: "revised integration formula used where earnings are less than 3.333333 time state contributory pension".
€30k = pension €6k
€35k = " €7k
€40k = " €8,348 (= .5 final salary - 1*SCP) and so on. Only deduct 1 * SCP
Hope that clarifies. The officer on €25 will pay €1,250 additional levy.