CENTRAL BANK staff have been given permission by the High Court to challenge the Minister for Finance’s refusal to exempt them from the pension levy.
The workers say their pension scheme is like a private fund and the Minister’s refusal to exempt them amounts to special taxation and is unconstitutional.
The Minister has told them the rules of their scheme “mirror” those in the Civil Service and a large part of the wider public service.
Yesterday, Mr Justice Michael Peart gave leave to the Unite trade union and Paul Gallagher, chairman of Unite’s staff committee in the Central Bank and Financial Services Authority of Ireland, to bring judicial review proceedings against the Minister for Finance and the Attorney General.
The workers are seeking orders quashing the Minister’s refusal to exempt them. They also want declarations that certain provisions of the pension levy law are invalid and repugnant to the Constitution.
Gerard Hogan, for Unite and Mr Gallagher, said it was their case that CBFSAI employees are entitled to an exemption under the Financial Emergency Measures in the Public Interest Act 2009 (which bought in the levy).
The exemption entitlement arose because their pension scheme was funded by themselves with any shortfall made up by the Central Bank from its own funds as an autonomous body, counsel said.
Mr Gallagher said the result of the levy was €405 a month had been deducted from his salary on top of €312 he already paid towards his pension.