Sir, – Brian Palfrey makes an excellent suggestion: to convert USC into a contributory pension fund (May 7th).
Why not also go a step further and introduce a single State contributory pension scheme. This would replace both the public and State pension schemes and there would be no more tax relief on private pension contributions.
A person’s pension would be based on what they have paid in, with a means-tested minimum for those without sufficient contributions, perhaps similar to the current non-contributory pension.
This would eliminate the present pension inequality between public and private sector workers, and surely would not be at great cost to the State, as it could streamline the current systems and would no longer have to provide tax relief. As a private sector worker I would far rather pay income-based contributions to the State than to an insurance company. – Yours, etc,
CAROLINE MOLLOY,
Abbeyvale,
Swords, Co Dublin.