The ICTU criticises the extension of pensions to the self-employed for just 4% a year contribution

Brendan Burgess

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I thought I was the only one saying this, but apparently Congress has been saying it since 2011!

And the chickens are coming home to roost now with the problems with the pension age.


The trade union movement also accused Minister for Social Protection Regina Doherty of being “completely imprudent” in providing social welfare benefits to the self-employed at a significantly discounted rate.

Ms King said “a direct employee, combined with their employer, must pay at a PRSI contribution rate of up to 14.95 per cent, and it was completely imprudent of Minister for Social Protection Regina Doherty to extend 93 per cent of all social insurance benefits to 350,000 self-employed people for a contribution rate of 4 per cent”.


She said this covered only 24 per cent of the benefit cost to the State. She predicted that measure would cost the state €413 million by 2025.
 

Brendan Burgess

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On top of this, the self-employed are being omitted from the auto-enrolment.

So after a few years, those PAYE suckers who contributed to auto-enrolment pensions will be excluded from the state pension when it is means tested, and the self-employed who made no provision will get the state pension.

Brendan
 

Purple

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Good to see the ICTU calling this out... a bit rich coming from them but good to see nonetheless.
 

josh8267

Registered User
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95
I thought I was the only one saying this, but apparently Congress has been saying it since 2011!

And the chickens are coming home to roost now with the problems with the pension age.


The trade union movement also accused Minister for Social Protection Regina Doherty of being “completely imprudent” in providing social welfare benefits to the self-employed at a significantly discounted rate.

Ms King said “a direct employee, combined with their employer, must pay at a PRSI contribution rate of up to 14.95 per cent, and it was completely imprudent of Minister for Social Protection Regina Doherty to extend 93 per cent of all social insurance benefits to 350,000 self-employed people for a contribution rate of 4 per cent”.


She said this covered only 24 per cent of the benefit cost to the State. She predicted that measure would cost the state €413 million by 2025.
Is the heading above correct self employed first paid PRSI in 1988 and contribution covered pension from that date same 520 contributions full state pension not means tested,
I think you are mixing up other benefits which were extended to self employed in past few years
 

Brendan Burgess

Founder
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Hi Josh
Well spotted. I was confusing the two.

But the other benefits are irrelevant in the context of giving the self-employed full pensions when they contribute just 4% into the Social Insurance Fund.

Brendan
 

josh8267

Registered User
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95
Good to see the ICTU calling this out... a bit rich coming from them but good to see nonetheless.
The most Interesting reading in the above link is the Ignored there own Government Tax strategy group to increase prsi up to 12% not a word out of FF/FG/LAB looks like they were expecting no one to notice and did not mind being unfair to over 2 million workers,
My hope is the Greens will bring a bit of fairness and reform ,
If you want to understand the rise in SF and the death of Labour look no further than how the main parties including Labour circle the wagon against there own former and departing members , to shore up special Interest Groups,
 

Purple

Frequent Poster
Messages
9,684
The most Interesting reading in the above link is the Ignored there own Government Tax strategy group to increase prsi up to 12% not a word out of FF/FG/LAB looks like they were expecting no one to notice and did not mind being unfair to over 2 million workers,
My hope is the Greens will bring a bit of fairness and reform ,
If you want to understand the rise in SF and the death of Labour look no further than how the main parties including Labour circle the wagon against there own former and departing members , to shore up special Interest Groups,
What special interest groups?
 
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