Sir, – Further to "Pensions could make millionaires of civil servants" (October 3rd), public servants appointed since 1995 pay full PRSI just like any private sector worker and so are entitled to the contributory old-age pension.
They get a top-up pension that can bring their total pension to 50 per cent of their average salary, if they have 40 years of service. Assuming an average salary of €48,000, as per the article, they would get a contributory old age pension of €11,000, plus a public service pension of €13,000.
The public service pension would be paid for an average of 15 years, so € 13,000 x 15 = €195,000, plus €72,000 lump sum = €267,000.
This is an awful lot less than the €1.5 million mentioned in the article.
Public servants pay a pension levy: many low-paid public servants, part-timers or those with less than 40 years of service are obliged to pay a pension levy even though they will never be eligible for a public service pension.
An independent actuarial study some years ago showed that a teacher would need to live to 94 years of age to get back the money they paid towards their pension – assuming a 2 per cent interest rate and that they had worked full-time for 40 years. However, half of teachers under the age of 35 are in temporary and part-time employment and will not be eligible for a full pension. – Yours, etc,
CILIAN Ó SÚILLEABHÁIN,
Cork.
Sir, – How terribly convenient that you discover a sense of outrage regarding pensions so close to the budget (Editorial, October 4th).
You are being played like a violin. – Yours, etc,
ALAN LAWLOR,
Dublin 8.