PAYE workers get raw deal on pensions

PAYE workers are getting a raw deal on their Defined Contributions (DC) pensions compared to the self-employed and company owners, according to a top pensions body.

If workers knew how badly served they will by their pension plans, the Irish Association of Pension Funds (IAPF) said they would be outraged.

“It is only lack of understanding of how annuities and Approved Retirement Funds work and the fact that few DC members have retired yet that is preventing howls of protest from the already hard-pressed PAYE members of defined contribution schemes”, said Joe Byrne, chairman, IAPF, in a statement issued yesterday.