Submission 314
May 08
Green Paper Submission
I wish to forward my views for consideration with the Pensions Policy Unit on the following issues:
1. Contributions:
There is too wide a base used for average contributions to decide on qualifying for a pension (Contributory) i.e: missed years, time in other states etc. These periods are included in arriving at an average contribution per year from first year of employment until pension year. If it is accepted that a person would be lucky to have any or part-time employment in the 50’s 60’s or 70’s and 80’s this system is unfair
2. Occupational Pensions
From my personal experience of having 22 years contributions made with an employer of Semi-State status from 1965 to 1987 when I was forced to accept redundancy and had to accept a refund of my contributions minus a stoppage of 10% I found this most unfair, especially so when there were special arrangements between this semi-state company and the Dept. of Labour to allow workers in the company go on retirement pension if over the age of 50 years (and in poor health?) I was 46 at that time so did not qualify for this arrangement where the company and the Dept. of Labour needed work-force reducement. This company (since folded) has a Pension Fund which probably is more substantial in Capital and requirements to pay pensions is still existing (alive) contributors and their spouses. There needs to be an enquiry and examination into these types of company schemes. A now retired Taoiseach was Minister for Labour in 1987. I would expect that with 22 years service and contributions to this pension scheme I have a moral right to some form of recognition from this scheme after all we have politicians receiving pensions after 5 years service although in some cases being still in gainful employment
3. Means Testing
The Dept. of Social and Family Affairs use a formula to arrive at income from investments which is most unfair. They refuse to accept actual income and use a ‘trickster’ formula which must be from ‘outer space’ at the top end of weekly means assessed, if for example a couple had €40,000 saved and these is a formula that say every €1296 earns €5.08 per week, which equates to €160.12 per year, so €40,000 would equate to €8,327 per year which equals to 20.8% P.A. rate, Hard to accept when An Post pay 0.5% to 1.5% per annum. It’s hard to accept that the Department say there is a 20% interest rate out there presently when the maximum rate would be more around 3.5% to 4%.
In wishing the Pensions Policy Unit every success in their endeavours I now sign off, although I could have made more observations but 3 submissions on the issues I refer to really stand out strongly and there needs to be something done to rectify these anomalies.
