Home > irish Politics, Public Service > Sheehy and Fitzpatrick gain from Budget as Low Pensions Cut

Sheehy and Fitzpatrick gain from Budget as Low Pensions Cut

SCROLL DOWN FOR INCOME REDUCTION TABLES AT VARIOUS GROSS PENSIONS by Sean Fallon
Income reductions for Public Service pensioners range range from 579.58 Euro p/a on a gross pension of 15,000 to 3,490.26 Euro per year on a pension of 45,000 euro p/a if recipient has medical card
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Table for Private Sector Occupational Pensioner on 550,000 per year by Paddy Healy using Deloitte Calculator on line
GAIN of 15,962 Euro
Table for Private Sector Occupational Pensioner on 15,000 per year by Paddy Healy using Deloitte Calculator on line
Loss is 399 Euro per year
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Eugene Sheehy retired on a pension of 529,000euro from AIB—he gains almost 16000 Euro per year from Budget. Sean Fitzpatrick retired from Anglo Irish Bank on a pension of 4 million –he gains many multiples of the Sheehy gains, 100,000Euro plus from budget
Attention has already been drawn to the fact that super-high earners are gaining significant amounts frombudget while low and middle income recipients are being hit.
There is an even greater inequity in the matter of pension income. As pensioners and non-employees do not pay PRSI and are not affected by the abolition of the ceiling, a pensioner on 550,000 Euro gains approximately 16,000Euro per year and an employer on the same income gains approximately 12,000 Euro.
On the other hand a person with a private sector pension of 15,000 Euro (less than the minimum wage) loses 400 Euro per year and a public sector pensioner on 15,000 Euro per year loses 580 Euro per year.
The injustice springs from two sources.
The pensions of public servants on low incomes are being directly cut while high income private pensioners such as former bank chief executives are not
The application of the Universal Social Charge to all income provided it is above 4004 Euro per year disadvantages all those on low incomes. Heath and Income levies had thresholds of 27,000Euro and 15,000 Euro respectively. On the other hand the universal social charge only comes to 7% on very high incomes though the levies it replaces come to 11% giving a huge gain to those on very high pension incomes. Indeed a retired minister on 150,000E gains 500 Euro by the substitution of the Universal charge for the old levies. Only the public service pension cut prevents him/her from making a nett gain.

Reductions in low and middle pensions are totally unjustified as their recipients contributed on the basis of an expectation or implied contract as to their retirement income
The cut in the Public service pension is an abuse by the government of its position as legislator to benefit the government as employer.
It is another example of unjustified attacks in this budget
Paddy Healy 086-4183732
HOW THE BUDGET AFFECTS PENSIONS
69 Year Old Public Service Pensioner
who was receiving €15,000 gross per annum PENSION
BEFORE AFTER
Gross €15,000.00 €14,820.00
DEDUCTIONS
Income Tax —— ——
Income Levy —— ——
Health Levy —— ——
Universal Social Charge —— € 399.58
(Over 70s) (€ 399.58)
CREDITS
Age Related Credit € 325.00* € 245.00*
Age Exemption Tax Returned € 340.00* ——
Tax saved by these —— * ——
Net Pension €15,000.00 €14,420.42
(Over 70s) (€14,420.42)
This is a Net cut of €579.58 P/A (€579.58 after age 70)
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would have been €15,000.00 .
The Net cut would be €579.58 P/A (€579.58 after age 70) .
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
* Does not apply. Income too low. No tax to be paid.

——————————————————————————————————–
HOW THE BUDGET AFFECTS PENSIONS
69 Year Old Public Service Pensioner
who was receiving €20,000 gross per annum
PENSION
BEFORE AFTER
Gross €20,000.00 €19,520.00
DEDUCTIONS
Income Tax € 340.00 € 604.00
Income Levy € 400.00 ——
Health Levy —— ——
Universal Social Charge —— € 685.20
(Over 70s) (€ 580.08)
CREDITS
Age Related Credit € 325.00* € 245.00
Age Exemption € 340.00 ——
Tax saved by these € 340.00 € 49.00
Net Pension €19,600.00 € 18,279.80
(Over 70s) (€18,384.92)
This is a Net cut of €1,320.20 P/A (€1,215.08 after age 70)
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would still have been €19,600.00 .
The Net cut would be €1,320.20 P/A (€1,215.08 after age 70)
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
* Does not apply (exceeded by age exemption). Under 65s add €65.00 to any figures for “Before” Net Pension & all “cut” figures shown.
——————————————————————————————————–
HOW THE BUDGET AFFECTS PENSIONS

A 69 Year Old Public Service Pensioner
who was receiving €30,000 gross per annum
PENSION
BEFORE AFTER
Gross €30,000.00 €28,920.00
DEDUCTIONS
Income Tax € 2,340.00 € 2,484.00
Income Levy € 600.00 ——
Health Levy € 1,200.00 ——
Universal Social Charge —— € 1,343.20
(Over 70s) (€ 956.08)
CREDITS
Age Related Credit € 325.00 € 245.00
Tax saved by this € 65.00 € 49.00

Net Pension €25,925.00 €25,140.92
(Over 70s) (€25,528.04)
This is a Net cut of €784.08 P/A (€396.96 after age 70).
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would have been €27,125.00. .
The Net cut would be €1,984.08 P/A (€1,596.96 after age 70).
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
—————————————————————————————————
HOW THE BUDGET AFFECTS PENSIONS

69 Year Old Public Service Pensioner
who was receiving €35,000 gross per annum
PENSION
BEFORE AFTER
Gross €35,000.00 €33,290.00
DEDUCTIONS
Income Tax € 3,340.00 € 3,358.00
Income Levy € 700.00 ——
Health Levy 1,400.00 ——
Universal Social Charge —— € 1,649.20
(Over 70s) (€ 1,130.08)
CREDITS
Age Related Credit € 325.00* € 245.00
Tax saved by this € 65.00 € 49.00

Net Pension €29,635.00 € 28,331.90
(Over 70s) (€28,841.82)
This is a Net cut of €1,303.10 P/A (€794.08 after age 70)
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would have been €31,035.00. .
The Net cut would be €2,703.10 P/A (€2,194.08 after age 70).
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
——————————————————————————————————–
HOW THE BUDGET AFFECTS PENSIONS

69 Year Old Public Service Pensioner
who was receiving €40,000 gross per annum
PENSION
BEFORE AFTER
Gross €40,000.00 €37,840.00
DEDUCTIONS
Income Tax € 4,340.00 € 4,268.00
Income Levy € 800.00 ——
Health Levy € 1,600.00 ——
Universal Social Charge —— € 1,967.60
(Over 70s) (€1,312.88)
CREDITS
Age Related Credit € 325.00 € 245.00
Tax saved by this € 65.00 € 49.00

Net Pension €33,325.00 €31,671.40
(Over 70s) (€32,308.12)
This is a Net cut of €1,653.60 P/A (€1,016.88 after age 70)
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would have been €34,925.00 .
The Net cut would be €3,253.60 P/A (€2,616.88 after age 70)
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
——————————————————————————————————–
HOW THE BUDGET AFFECTS PENSIONS

A 69 Year Old Public Service Pensioner
who was receiving €45,000 gross per annum
PENSION
BEFORE AFTER
Gross €45,000.00 €42,390.00
DEDUCTIONS
Income Tax € 5,340.00 € 5,178.00
Income Levy € 900.00 ——
Health Levy € 1,800.00 ——
Universal Social Charge —— € 1,926.26
(Over 70s) (€1,374.24)
CREDITS
Age Related Credit € 325.00 € 245.00
Tax saved by this € 65.00 € 49.00

Net Pension € 37,025.00 € 35,334.74
(Over 70s) (€35,886.76)
This is a Net cut of €1690.26 P/A (€1138.24 after age 70).
If you paid no Health Levy due to Medical Card your “Before” . Net Pension would have been €38,825.00 .
The Net cut would be €3,490.26 P/A (€2,938.24 after age 70)
This calculation makes no allowance for any other credits or exemptions that may have been lost in the budget or may be lost afterwards.
Public service pensioners have paid for their pensions throughout their entire working lives. Their pension is deferred salary, held in trust for them for up to 40 years by the State, which has the use of this money in the interim to invest in Ireland. When the pension falls due there is no justification for withholding any part of it either temporarily or permanently. Furthermore, the Government, as paymaster, should be paying an employer-contribution towards the public service pension for the same period of time, up to 40 years. Average employer contributions to pensions in the private sector are 5.8% (2010).
—————————————————————————————————–
Paddy Healy
Private Sector Pensioner on 550,000 Euro (65-69 yrs)–NO CUT in Gross
after budget ————————- before budget
Your Income €550,000.00————————- €550,000.00
Loan BIK €0.00—————————————– €0.00
Vehicle BIK (1) €0.00——————————— €0.00
Health Insurance BIK €0.00——————————- €0.00
Qualifying Pension Deduction (€0.00)——————————- (€0.00)
Carer Allowance (€0.00)—————————————– (€0.00)
Tax @ Lower Rate (20 %) €6,560.00—————————————— (20 %) €7,280.00
Tax @ Higher Rate (41 %) €212,052.00—————————————— (41 %) €210,576.00
Tax Credits (€1,943.00)———————————————— (€2,155.00)
Net Tax (€216,669.00)——————————————- (€215,701.00)
PRSI (€0.00) —————————————————- (€0.00)
Health Levy N/A——————————————- (€26,750.00)
Income Levy N/A———————————————- (€28,000.00)
Universal Levy (€37,819.00)———————————– N/A
Annual Net Income €295,512.00———————————— €279,550.00

Nett Gain =295,512-279,550 =15,962 Euro
————————————————————————————————
Paddy Healy Private Sector Pensioner(65-69 yrs) on 15,000 per year
after budget—————————-before budget
Your Income €15,000.00————————————15,000.00
Loan BIK €0.00————————————————- €0.00
Vehicle BIK (1) €0.00——————————– €0.00
Health Insurance BIK €0.00—————— €0.00
Qualifying Pension Deduction (€0.00) ——————- (€0.00)
Carer Allowance (€0.00)————- (€0.00)
Tax @ Lower Rate (20 %) €0.00————————————— (20 %) €0.00
Tax @ Higher Rate (41 %) €0.00————————————- (41 %) €0.00
Tax Credits (€0.00) ————————————– (€0.00)
Net Tax (€0.00)—————————– (€0.00)
PRSI (€0.00) ———————————- (€0.00)
Health Levy N/A———————————– (€0.00)
Income Levy N/A———————————— (€0.00)
Universal Levy (€399.00)——————————– N/A
Annual Net Income €14,601.00——————————– €15,000.00
LOSS=15,000-14,601 =399 Euro per year

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  1. Martin Hamilton
    December 15, 2010 at 4:35 pm

    as a sixty five year old who started working at 14 years of age, politically active all my adult life and who has lived through many many budgets, i am not a bit surprised at the way the 2011 budget has been framed to make the low to middle income earners pay the bulk of national debt. When has it been any different and if people imagine things will change by voting in a lobor/Fine Geal capatilist government next time round they need a labotomy. its also interesting how the middle income earners are now concerned about poverty and one can not avoid the conclusion that it is because they have woken up to its reality because only now is it really begining to dawn on them that they are being made poor.?

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