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Public sector pension fund?

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  • 01-05-2009 12:27pm
    #1
    Assets Model
    Registered Users Posts: 308 ✭✭


    Obviously I understand that the pension levyis basically a paycut but where does the money that public sector workers always paid into their pensions go? Is there a fund or does it just go back into public funds and then their pensions are paid out of current spending?


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    #2
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Assets Model wrote: »
    Obviously I understand that the pension levyis basically a paycut but where does the money that public sector workers always paid into their pensions go? Is there a fund or does it just go back into public funds and then their pensions are paid out of current spending?
    Luckily for current public sector pensioners it gets paid out of current spending.


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    #3
    Assets Model
    Registered Users Posts: 308 ✭✭Assets Model


    SkepticOne wrote: »
    Luckily for current public sector pensioners it gets paid out of current spending.

    Yeah I know their pensions get paid out of current spending but where do their contributions go?Is there a fund at all?


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    #4
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Assets Model wrote: »
    Yeah I know their pensions get paid out of current spending but where do their contributions go?Is there a fund at all?
    There is no fund. There is something called the national pensions reserve fund, but that is funded by the tax payer generally (a lot of the initial money came from the sale of Telecom Éireann in 1999) and is supposed to help pay for pensions in the future. But it is not analogous to the sort of pension fund you get in the private sector. Public sector pensions (as well as the state contributory and non-contributory pensions) will still be paid out of the public purse (luckily for them!).


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