Pension Levy Public Service Pay

By PDFORRA

Negotiations between the Government and the Social Partners on cutbacks in Public Service Pay broke down without agreement on Monday last 2nd February 2009. As a consequence the Government unilaterally imposed a pension levy across the public service which includes all members of the Defence Forces. It is proposed to enact legislation in Dail Eireann in the coming weeks to implement these changes.

PDFORRA is not currently part of ICTU and therefore was not directly involved in the recent talks and like all other public sector unions’ press releases and media briefings on PDFORRA’s position on the pension levy are in progress.

Further, PDFORRA will be seeking clarification on a number of points in the coming days from the Department of Defence together with an urgent meeting of the National Executive on the best way to address this unfair pension levy.

The effects of the pension levy on members of the Defence Forces are as follows: 

Salary

Amount of Deduction

Deduction as a% of Overall salary

€15,000

€450

3.00%

€20,000

€750

3.80%

€25,000

€1,250

5.00%

€30,000

€1,750

5.80%

€35,000

€2,250

6.40%

€40,000

€2,750

6.90%

€45,000

€3,250

7.20%

€50,000

€3,750

7.50%

€55,000

€4,250

7.70%

€60,000

€4,750

7.90%

€65,000

€5,250

8.10%

€70,000

€5,750

8.20%

€75,000

€6,250

8.30%

€80,000

€6,750

8.40%

€85,000

€7,250

8.50%

€90,000

€7,750

8.60%

€95,000

€8,250

8.70%

€100,000

€8,750

8.80%

€125,000

€11,250

9.00%

€150,000

€13,750

9.20%

€175,000

€16,250

9.30%

€200,000

€18,750

9.40%

€225,000

€21,250

9.40%

€250,000

€23,750

9.50%

€275,000

€26,250

9.50%

€300,000

€28,750

9.60%

 

These levies will be deducted from pay exclusive of Tax/PRSI. i.e. calculations for Tax/PRSI will be made after the deduction of the levy.

Further briefings on the current situation will be posted on the Associations Web Site to keep the membership updated.

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