Private sector workers paying €8 billion annually for public sector pensions

[Kevin Doyle]

they don't have to pay for the pension

They do, upwards of 8.5% of salary.

In any case, do you consider a pension of 20K or 15k for that matter excessive?

[wexfordman]

Em, PS workers don’t get social welfare pensions, this is the state pension that every private sector worker gets.

In fact the only bit relevant to PS pensions is this €2.3 billion to fund retirement payments to public servants

So no, the private sector does not pay 8 billion annually to fund PS pensions.

.

Standard practice for any db pensiö scheme is to deduct multiple of oap from pension, so perfectly normal that ps do not get oap, just to highlight!

[DaveM]

They do, upwards of 8.5% of salary.

In any case, do you consider a pension of 20K or 15k for that matter excessive?

No... provided it's not up to me to subsidise it!

[Proposition Joe]

€4bn to fund social welfare pensions? Public sector social welfare pensions?
And €2.3bn on top of that?
Are public sector pensions now 60% social welfare?

I'd love to see this report.

Its the accrual cost of future public service pension payments that accounts for the bulk of this.

The Bord Snip report actually costed this liability a bit higher, at 7.7 billion per year IIRC.

You can do a back of the envelope calulation yourself:

379,000 * ((1/80 * life expectancy after retirement) + 3/80) * 50,600 euros

The 50,600 euros being the average PS salary, 3/80 to account for the gratuity on retirement and 1/80 for the pension year accrued.

Of course life expectancy after reirement is the big variable, which could range between 40 years for a Garda retiring at 50 down to say 20 years for a civil servant retiring at 60 or 65.

Still, you can plug in a guesstimate for remaining life and churn out a number. I'd be surprised if any reasonable estimate comes out at less than 5 billion.

[fifioc]

I am not a huge fan of the public sector but in fairness you can hardly expect them to just refuse to take their pension or to accept massive decreases in salary. I would take any figure given by the crooks in PIAB with a pinch of salt. They are chancers.

Chancers and Crooks???, You clearly have no idea what organisation you talking about, why don’t you clarify that statement?

[Wakeupcall]

Chancers and Crooks???, You clearly have no idea what organisation you talking about, why don’t you clarify that statement?

I agree - Oldira is talking out if their anus.

[Harmonica]

As suggested earlier in the thread the PS would remove defined benefitr pensions & also remove pension levy for those people. Problem solved. PS pension rides the tide of boom & bust like the rest of us...

[X-ray]

This country is full of cretins that just believe the latest pied piper walking past, I give up explaining the actual facts.

[Conor]

Still, you can plug in a guesstimate for remaining life and churn out a number. I'd be surprised if any reasonable estimate comes out at less than 5 billion.

Sure, to work out the gross liability. To get a meaningful figure of the cost to the state, though, you'd have to work out the NPV of that €5bn.

[Proposition Joe]

Sure, to work out the gross liability. To get a meaningful figure of the cost to the state, though, you'd have to work out the NPV of that €5bn.

Well its not quite that simple, as the discount rate normally applied in NPV calculations would be largely offset by future growth in PS wages (seeing as pension payments are related to final as opposed to career-averaged earnings, and also coupled to post-retirement pay increases).