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Don’t target pensions to fund jobs scheme

AS Jason Fitzharris (May 17) and myself are in agreement that targeting the pension savings of workers (public or private) is unjust, I am sure that he won’t mind if I correct some of his small omissions.

The pension contributions of all workers, public or private, are tax-deductable. It is not true to state that all public servants get tax relief at 41%, some do, some don’t — same as in the private sector.

Mr Fitzharris mentions the 7.5% levy which public servants pay in addition to their normal pension contributions but failed to point out that retired public service workers have already experienced a 7% cut in the pension they receive (5% cut, 2% income levy). This cut is permanent, not for a four-year duration.

The establishment of a job creation fund has obvious merits but the correct way to finance it is by all earners contributing their fair share through the tax system — not by targeting pensions, public or private.

Kevin P McCarthy

Killarney

Co Kerry


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