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:
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.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. . .
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.