Miners’ pensions to be cut by 10%

FORMER Tara Mines workers have been told they must accept a cut in their pensions of up to 10% due to the Government’s new pension levy.

According to trade union SIPTU, in recent days 267 Tara Mines pensioners have received a letter from the trustees of the Tara Mines pension fund telling them that, due to the introduction of the 0.6% levy on private occupational pension funds, they must choose to accept either a 10% cut in their pensions for the next four years or a permanent reduction of 2.5% for the rest of lives.

The pensioners have called on the Government to prevent the attempt to cut their entitlements.

SIPTU said that among those who received the trustees’ letter were the surviving dependents of 16 miners killed while working in Tara Mines.

“Old-age pensioners, who listened to advice from the government to provide for themselves and their dependents, are to have their pension funds pillaged,” said the spokesman for Tara Mines pensioners, Tom Kelly:

“I do not believe this Government pension levy will create jobs. Instead it will lead to more job losses due to the reduced spending power of pensioners across society.

“There are other more effective ways for the Government to generate jobs. If even a small proportion of Irish pension funds, which are currently valued at over €80 billion, were invested in this country rather than abroad this would create many more jobs locally.”

Mr Kelly said exempting pension schemes from the levy if they were willing to invest 5% of their funds in Ireland would generate far more jobs.

Tara Mines were unavailable for comment last night.