Madam, – Being a second-level science teacher I decided to test Alastair White’s hypothesis (October, 7th) that as a public servant I contribute just 7 per cent of salary towards my pension. When I added together all my pension contributions and levies I obtained a sum equivalent to 29 per cent of my take home pay (or 18 per cent of gross).
Some 3 per cent of this was to cover years that I was in part-time employment and unable to contribute towards a pension, a situation that occurs for the majority of teachers as few gain permanent work early in their career.
To receive a full pension I will have to make contributions for a total of 40 years. Even after contributing for this length of time my pension will still suffer actuarial reductions if I retire before the age of 65. Private sector workers in general contribute for a much shorter length of time, resulting in higher contributions or a smaller final pension.
Like all other public service workers I have had to forgo several pay increases in the past as pay rises have been discounted in recognition of the cost of our pensions to our employer. Despite paying PRSI, I will not get the additional benefit of the old-age pension. I would gladly double or triple my PRSI contributions for the 10 years necessary to qualify for this.
Perhaps my pension is not as wonderful as Mr White assumes it to be. Is it possible that he has not done his homework on this issue?, – Yours, etc,