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Varadkar: The state may not have the money to pay future public sector retirees their pension


RobertW

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Last Monday Leo Varadkar basically pointed out a reality about future retirees of the public sector and that is they the state cannot guarantee them their pension.

Varadkar warns on public sector pensions - The Irish Times - Mon, Dec 31, 2012

The link above quotes Varadkar as follows:

People in the public service have very secure pensions but it is not at all clear that we will be able to fund them in the future. So in reality they are not that secure. . .
Considering that public sector workers pay on average between 10-14% of their salary for their pension for government minister to then state that that worker is guaranteed nothing is quite a statement to make. Considering also that there is no pension fund makes this a seemingly obvious statement to make.

Varadkar was commenting on Joan Burton's future plans to enrol private sector workers into a pension scheme monitored by the NTMA. Nevertheless the private sector worker will be given the option to leave. . . Unlike, of course, the public sector worker who must mandatorily join the public sector pension scheme and has no option but to remain in it.

Considering the states finances and the effective "inverted pyramid" (many retirees and not enough workers ) in 20 or 30 years time it is my belief that Varadkar is just being directly honest here and calling a spade a spade.

When one considers also that public sector workers (from January 2011) will have their pensions calculated on the basis of the average career salary with it fully obtainable at the age of 68 . . . Are public sector workers being hoodwinked by the Government?

I think the fact that the Government will not allow public sector workers to leave its pension scheme (despite paying PRSI at the same rates as private sector workers) sort of says it all.
 
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hammer

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Well if there are no private sector workers left to pay taxes its pensions over.
 

ruserious

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The government chose bonds over citizens. The results of which are coming clearer. This generation of politicos will always be remembered for the wrong reasons.
 

hammer

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You know me better than that. Of course the PS workers pay tax but their pensions come from the big exchequer pot.

There wont be enough people contributing to it over the next 10-15 years.
I know you have seen the stats for those in work to those on pension over the next 10-20 years etc.

We already wiped out €20 billion of the fund by giving it to the Banks.
 

RobertW

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You know me better than that. Of course the PS workers pay tax but their pensions come from the big exchequer pot.

There wont be enough people contributing to it over the next 10-15 years.
I know you have seen the stats for those in work to those on pension over the next 10-20 years etc.

We already wiped out €20 billion of the fund by giving it to the Banks.
I agree. There won't be enough.

What does this say for the state contributory pension if a government minister is saying that public sector workers are guaranteed nothing despite continuously mandatorily contributing?
 

hammer

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There is absolutely no way that the percentages of final salary or average salary over the previous x number of years can continue to be paid.

First........the maximum pension paid to any public servant should be capped at €40,000

That will at least gurantee some sort of half decent pension for the lower paid.
 

greengoose2

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There is absolutely no way that the percentages of final salary or average salary over the previous x number of years can continue to be paid.

First........the maximum pension paid to any public servant should be capped at €40,000

That will at least gurantee some sort of half decent pension for the lower paid.
That wouldn't be fair on the overpaid!
 

Spanner Island

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I agree. There won't be enough.

What does this say for the state contributory pension if a government minister is saying that public sector workers are guaranteed nothing despite continuously mandatorily contributing?
That it's a load of sh!te perhaps?

The pensions time bomb has been flagged for years and possibly even decades at this stage...

Peoples' expectations are way ahead of what will be reality once the bomb goes off.
 

Ulster-Lad

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The pension funds were sacrificed to our European masters long ago.
 

linny55

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There is absolutely no way that the percentages of final salary or average salary over the previous x number of years can continue to be paid.

First........the maximum pension paid to any public servant should be capped at €40,000

That will at least gurantee some sort of half decent pension for the lower paid.
i'd lower that to 30k and that still would not lessen the pension of the vast majority of PS workers.
 

mhagain

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Well if there are no private sector workers left to pay taxes its pensions over.
Aside from the old "public sector workers pay tax too" chestnut (which I note has already been addressed) it's not just pensions over if PAYE revenue ends - it's everything over.

Meanwhile, how much is being paid in the next Anglo promissory note instalment again? And what proportion of the recent budget's cuts would that amount to?
 

hammer

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Dont forget that the Irish Nationwide, €5.4 billion, Mickey Fingers (w)anker is also included in those Promissory Notes.
 

Burnout

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Oh here we go again 'a civil service bashing' OP jazzed up, remastered and dressed up as the truth. Leo, Leo, leo why haste thou foresaken us.....
 

hammer

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Sure when SF get their way :) pay will be slashed and pensions cut to the bone.

If it wasn`t for the magic money tree you would nearly believe them.
 

Burnout

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