Central Bank and FSA staff lose pension levy challenge
They claimed their pension scheme is like a private fund and the minister’s refusal to exempt them amounts to double or special taxation which is unconstitutional.
The Unite trade union and Paul Gallagher, chairman of its staff committee in the Central Bank and Financial Services Authority of Ireland (CBFSAI), brought the challenge against the minister and the AG. Mr Gallagher said the levy has cut his monthly pay by €405 on top of €312 per month he already pays towards his pension.
Yesterday, High Court President, Mr Justice Nicholas Kearns, dismissed the action saying the bank workers had not rebutted the presumption that the 2009 Financial Emergency Measures in the Public Interest Act, which brought in the levy, is constitutional.
The compatibility of the 2009 act with constitutional guarantees of equality and property rights had already been established in other recent High Court decisions, the judge said.
The purpose of the 2009 act was more than just to cut current Exchequer spending but for those getting a public service pension to make a contribution, or further contribution given the serious economic circumstances of the state, he said
There were other considerations which may justify the CBFSAI workers having to pay the levy, chief of which was clearly and undeniably that their pension scheme is modelled on the public service scheme which is significantly and markedly more favourable than those in the private sector, the judge said.
He rejected the workers’ claim that it amounted to double taxation.
In the context of the 3% to 10% deductions involved, it did not amount to a disproportionate additional contribution from a person with the benefit of a public sector type pension.
