A retired Limerick professional, on a modest €17,000 a year retirement pension, has slammed Minister for Finance Michael Noonan, for his controversial pension levy.
The man in question, who did not wish to be named, said it was shocking that the minister will, inside the next two years, be entitled to a weekly pension of €2,000, which will not come under the ambit of the levy.
“In addition, he will receive a tax-free lump sum of €200,000. Yet, on my little nest egg of €17,000, upwards of €1,800 will be deducted annually”.
It was equally shocking, he added, that the really wealthy people in this country who moved their pension funds on retirement to the Approved Retirement Fund for tax efficiency purposes, were also excluded from the levy.
“The APR was designed specifically to protect the rich-we now learn that they are not really pension funds. Again, it is a case of those in power protecting their friends.
“Our local Labour and Fine Gael elected Dail members have remained remarkably quiet on this issue-they seem to have closed ranks”.
The pensioner added that those on modest enough pensions had also been hit earlier this year with the Universal Social Charge, leading to a double whammy.
“In my case, it was €50 per month”.
He totally dismissed Minister Noonan’s argument that the levy charge was justified because of the generous tax relief available to pension savings in the past.
He also asked to minister to explain why civil servants were excluded.
“They have guaranteed jobs and guaranteed pensions, the kind that ordinary people can only dream of”.
Pensioners affected, he continued, should unite and take their case to the High Court.
“When I joined my company’s retirement scheme I entered into a contract. The government of the day provided tax relief on my weekly contribution. Now this crowd want to claw it back. Surely, that is not constitutional and must be challenged before legislation is passed.
“Why did the Government not introduce legislation to prevent bankers from walking away with millions in their back pocket, with additional millions put into their pension funds…. millions that the ordinary taxpayer has to meet as a result of the bailout of the banks.
“We were told it couldn’t be done because of contractual agreements. I, too, entered into a contract when I subscribed to a pension fund, but I am one of the little people and have no voice”.
Meanwhile, pension industry sources say they are ready to challenge the Government’s decision.
