Ireland. Public sector ‘benefits the most’ from tax reliefs on pensions
Public servants are the biggest beneficiaries of the tax reliefs on pension contributions, a new report has found.
This means that any move to reduce the tax reliefs will hit Government workers hard, prompting them to seek higher pay.
The paper, by leading pensions actuaries Tony Gilhawley and Roma Burke, found that the State’s contribution to the pension of an average public servant recruited before 2013 is 29pc of their salary, rising to 53pc for gardaí.
Private sector workers with a defined contribution pension have an average employer contribution of just 7pc, the paper states, quoting Department of Public Expenditure and Reform figures.
“If you want to retire on a good secure pension don’t work in the private sector. Join the public service,” the actuaries state.
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