Pensions fell to greed and mismanagement

SO Dr Florence Craven (Letters, October 10) wishes that the private sector pensions of the likes of Michael Fingleton (estimated €27m) be tax-free while the €12,000 public sector pension of a special needs assistant to be taxed.

Interesting.

For Dr Craven’s information all income arising from occupational pensions in Ireland is subject to tax under the PRSI system. This means that those with higher pensions pay more tax and those with smaller incomes pay less. This system is considered at least to have some semblance of fairness attached to it. Dr Craven’s comment that private sector pensions are “riskier” is absolutely true.