Madam, – There is a very simple solution to the current controversy over occupational pensions, both public and private.
They should all be replaced by one scheme run as an additional contribution to PRSI. Every employee, whether in the public or private sector, would contribute, and so would every employer. Even politicians would be included.
The State occupational pension paid when someone retired would be based on one eightieth of their final salary for each year they contributed. The funds would be ring-fenced, the pension guaranteed by the State and administered by the National Pension Fund.
The advantages of such a system is its fairness and transparency and the savings that will be made on the hidden costs levied by the private pensions industry. Existing private occupational schemes could be absorbed into the new State scheme.
It might cost the taxpayer something to do this but it will be a lot less expensive than bailing out the banks and far more equitable for society. Most importantly, it would save us all from penury in our old age.
If people want to continue taking out private occupational schemes on top of the State-run scheme, good luck to them, but they should receive no tax breaks. – Yours, etc,