USC on occupational pensions

Sir, Unlike civil servants, whose pensions are paid by the exchequer, occupational pensioners are provided out of contributions to a pension fund made by employees and their employer during their working lives.

The infamous pensions levy introduced by the government in 2011 has yielded some €2.25 billion for the exchequer with pension funds being correspondingly depleted. As a result, many occupational pensioners have had their pensions reduced, and in some cases the reduction will apply for the lifetime of the pensioner. 

This contrasts with those on the State pension, whose pensions have been increased since 2011.

Furthermore, those whose pension is made up of the State pension and a supplementary pension are exempt from paying USC on the State pension component. In contrast, those whose pension comprises only an occupational pension get no exemption from USC and pay full USC on their pension. – Yours, etc,



Dublin 16.