Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association
Prepared by OBI
Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association | 2
Contents
Executive Summary
3
Background
5
Public Service Pension Reduction (PSPR)
5
Universal Social Charge (USC)
7
Reduction in Tax Credits & Tax Bands
9
Local Property Tax (LPT)
10
Mortgage Interest Relief
10
Deposit Interest
11
Health & Medical
11
Water Charges
13
Increase in VAT rate
13
Overall Effects of Public Service Pay Reductions & Taxation Changes
14
Conclusion
19
Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association | 3
Executive Summary
The austerity measures introduced by successive Governments in recent years have had particular impact on
pensioners as they have entered a stage of life where they no longer have other means of income generation in the
main. This report looks in particular at the impact of these measures on members of the Garda Síochána Retired
Members Association.
The Garda Síochána Retired Members Association covers all retired members of the force and therefore has
members ranging from retired gardaí to retired commissioner level. The pension reductions and additional taxes
introduced over recent years will obviously impact the members differently given the varied pension scales based
on rank at retirement but this must be viewed in the context of attained standards of living gained through
promotion up the ranks of An Garda Síochána during the years of service with the organsiation. Therefore, it
would be unreasonable to focus solely on the impact of the cutbacks and additional taxes on lower grade pensions
as the expectations of retirees who held more senior positions in the force have also been significantly eroded.
Over the course of the past six years, successive Budgets, financial emergency measures and national pay
agreements have resulted in members experiencing public service pension reductions, additional taxes and
reductions in standards of living. The calculations reported herein have been made on the basis of members who
retired with full long service increments at their respective grades at retirement taking account of pensionable
allowances at that grade on an average basis as allowances would have varied by reference to the duties and roles
performed by each member at their grade.
The report will look at the following items:
Public Service Pension Reduction , Univeral Social Charge (USC), Tax credits & Tax Bands: Each member of
the Garda Síochána Retired Members Association have taken a reduction in their pension either directly through a
cut to their pension or indirectly through a cut to their salary with a knock on reduced pension if they retired in
more recent years.
In addition the Universal Social Charge (USC) was introduced in 2011 which is collected through the taxation
system and the rates vary from 2% to 7%.
Also in 2011 the tax credits and tax bands were reduced and there has been no reversal in recent budgets. This has
resulted in higher tax liabilities.
The reduction in Public Service Pensions coupled with the introduction of the USC and the reduction in tax
credits and tax bands has resulted in a significant reduction to each member’s net income. The percentage of the
reduction varies between 9.5% and 14.7% as detailed over:
Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association | 4
Member
% Reduction Suffered
Garda
9.5%
Sergeant
11.3%
Inspector
11.4%
Superintendent
11.9%
Chief Superintendent
12.5%
Assistant Commissioner
12.7%
Deputy Comissioner
13.1%
Commissioner
14.7%
*Note: The percentage rate of reduction suffered by members in the Garda to Inspector rank who retired pre 1993 along
with members who retired at Superintendent and Chief Superintendent rank prior to 1998 is slightly lower.
Local Property Tax: In 2013 a property tax that starts at €90 per year and can range up to €1,755 per year on each
residential property held was introduced. The tax is determined by the self-assessed market value of the property.
Mortgage Interest Relief: Where an individual started paying their mortgage in 2003 or earlier, their entitlement
to mortgage interest relief expired in 2009. This would be relevant for possibly all members of the Garda
Síochána Retired Members Association.
Health Expenses: Reduction in relief for medical expenses from marginal rate of tax to the standard rate of tax
(presently 20%).
Medical Insurance Premiums: Tax Relief at Source on medical insurance premiums is now restricted to the first
€1,000 per adult policy holder and the first €500 per child.
Medical Cards: Abolition of automatic medical cards for persons aged 70 years or over.
Increase in VAT rate: In 2012 there was an increase in the standard rate of VAT from 21% to 23%.
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& Additional Taxation Measures to the
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Background
The Garda Síochána Retired Members Accociation (GSRMA) was formed in 1961 and covers all retired members
of the force from those who retired at garda level right up to the rank of commissioner. Its principle objects are to
imrpove the welfare, social and economic status of retired members of An Garda Síochána. The association had
achieved much success in this regard over the years since its foundation but the public service pension reductions
coupled with the introduction of additional taxation measures in recent years has eroded much of this work.
It is acknowledged at the outset that much of these changes were forced upon Government as a result of the global
recession and the challenging economic times which exist in Ireland. Notwithstanding this, the members of
GSRMA have seen very siginifcant impacts on their net disposable incomes arising from these measures having
reached a time in their lives in most instances where they are not in a position to generate alternative replacement
income.
Public Service Pension Reduction (PSPR)
The Financial Emergency Measures in the Public Interest Act 2010 introduced a reduction in public service
pensions with effect from 1 January 2011. Public service pensions above €12,000 a year would be reduced by an
average of 4%. Those in receipt of a pension below €12,000 a year were exempted.
The table below shows the reduction that applies to public service pensions for persons who retired up to 29
February 2012 and whom are in receipt of pensions of greater than €32,500:
Annualised amount of Public Service Pension
Up to €12,000
Reduction
Exempt
Any amount over €12,000 but not over €24,000
8 per cent
Any amount over €24,000 but not over €60,000
12 per cent
Any amount over €60,000 but not over €100,000
17 per cent
Any amount over €100,000
28 per cent
The table below shows the reduction that applies to public service pensions for persons who retired up to 29
February 2012 and are on pensions of below €32,500:
Annualised amount of Public Service Pension
Up to €12,000
Reduction
Exempt
Any amount over €12,000 but not over €24,000
6 per cent
Any amount over €24,000 but not over €60,000
9 per cent
Any amount over €60,000 but not over €100,000
12 per cent
Any amount over €100,000
20 per cent
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This can be explained further using worked examples as follows:
Table 1:
Average
Pension
Garda
(after 17 years)
PPSR
Reduced
Pension
€31,654
First €12,000 – no reduction
€12,000 x 6% = €720
€7,654 x 9% = €688.86
€1,408.86
€30,245
€35,483
First €12,000 – no reduction
€12,000 x 8% = €960
€11,483 x 12% = €1,377.96
€2,337.96
€33,145
€38,649
First €12,000 – no reduction
€12,000 x 8% = €960
€14,649 x 12% = €1,757.88
€2,717.88
€35,931
€50,550
First €12,000 – no reduction
€12,000 x 8% = €960
€26,550 x 12% = €3,186.00
€4,146.00
€46,404
€5,621.87
€56,389
€7,296.88
€64,567
€9,273.13
€74,216
€16,630
€99,620
Sergeant
(after 12 years)
Inspector
(after 6 years)
Superintendent
LSI (after 3 years on max)
Chief Superintendent
LSI (after 3 years on max)
€62,011
Assistant Commissioner
€71,864
Deputy Commissioner
€83,489
Commissioner
€116,250
PSPR Calculation
First €12,000 – no reduction
€12,000 x 8% = €960
€36,000 x 12% = €4,320
€2,011 x 17% = €341.87
First €12,000 – no reduction
€12,000 x 8% = €960
€36,000 x 12% = €4,320
€11,864 X 17% = €2,016.88
First €12,000 – no reduction
€12,000 x 8% = €960
€36,000 x 12% = €4,320
€23,489 x 17% = €3,993.13
First €12,000 – no reduction
€12,000 x 8% = €960
€36,000 x 12% = €4,320
€40,000 x 17% = €6,800
€16,250 x 28% = €4,550
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Position for GSRMA members (Garda to Inspector rank) who retired before 1993
The pensions of GSRMA members who retired before 1993 at Garda, Sergeant or Inspector rank did not include
allowances other than rent allowance and therefore are in receipt of pensions at lower amounts than stated above
at Table 1:
Table 2:
Average
Pension
Garda
(after 17 years)
PPSR
Reduced
Pension
€25,654
First €12,000 – no reduction
€12,000 x 6% = €720
€1,654 x 9% = €148.86
€868.86
€24,785
€29,483
First €12,000 – no reduction
€12,000 x 8% = €960
€5,483 x 12% = €657.96
€1,617.96
€27,865
€32,649
First €12,000 – no reduction
€12,000 x 8% = €960
€8,649 x 12% = €1,037.88
€1,997.88
€30,651
Sergeant
(after 12 years)
Inspector
(after 6 years)
PSPR Calculation
Position for GSRMA members (Superintendent & Chief Superintendent rank) who retired before 1998
The pensions of GSRMA members who retired before 1998 at Superintendent or Chief Superintendent rank did
not include allowances other than rent allowance and therefore are in receipt of pensions at lower amounts than
stated above at Table 1:
Table 3:
Average
Pension
PPSR
Reduced
Pension
€42,750
First €12,000 – no reduction
€12,000 x 8% = €960
€18,750 x 12% = €2,250
€3,210.00
€39,540
€54,211
First €12,000 – no reduction
€12,000 x 8% = €960
€30,211 x 12% = €3,625.32
€4,585.32
€49,626
Superintendent
LSI (after 3 years on max)
Chief Superintendent
LSI (after 3 years on max)
PSPR Calculation
Universal Social Charge (USC)
The Universal Social Charge (USC) was introduced 1 January 2011. The charge was brought in to replace the
Health Levy and the Income Levy. The latter had been introduced with effect from 1 January 2009 as an
additional levy payable on gross income, including notional pay, before any relief for pension contributions.
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USC is a tax also payable on gross income, including notional pay, before any relief for pension contributions. It
is a particularly penal charge as the top rate of 7% is reached on income above €16,016, albeit a top rate of 4%
applies to persons aged 70 years or over provided their total annual income is €60,000 or less. Notwithstanding
this, the USC adds a significant additional tax liability for retired persons who would have previously paid the
health levy at 2% up to aged 70 years but were exempt from the health levy after aged 70.
Detailed below is a table showing the current standard rates and thresholds of USC.
Standard USC Thresholds 2014
Income
Rate
Income up to €10,036.00
2%
Income from €10,036.01 to €16,016.00
4%
Income above €16,016.00
7%
There are reduced rates of USC for individuals aged 70 years or over whose aggregate income for the year is
€60,000 or less and individuals aged under 70 who hold a full medical card whose aggregate income for the year
is €60,000 or less.
Reduced USC Thresholds 2014
Income
Rate
Income up to €10,036.00
2%
Income above €10,036.00
4%
Therefore, a member with a pension of €31,654 pre PSPR (Garda) would pay additional charges (USC) of
€1,534.58.
First €10,036 @ 2%:
€200.72
Next €5,980 @ 4%:
€239.20
Balance of €15,638 @ 7%:
€1,094.66
Total Annual USC:
€1,534.58
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Reduction in Tax Credits & Tax Bands
Budget 2011 reduced the tax credits and tax bands for both married and single individuals. The effect of this was
that an individual paid more tax in 2011 in comparison to previous years. The tax credits and tax band figures
have not changed since 2011 and remain the same in 2014.
Detailed below are tables showing the tax credit and the tax bands for 2010 and 2011 – 2014:
Tax Credits
Tax Credit
2010
2011 – 2014
Single Person
€1,830
€1,650
Married Person
€3,660
€3,300
PAYE Credit
€1,830
€1,650
Age Credit: Single
€325
€245
€650
€490
Personal Circumstances
2010
2011 – 2014
Single
€36,400 @ 20%
€32,800 @ 20%
Balance @ 41%
Balance @ 41%
Married Couple one spouse with
Income
€45,400 @ 20%
€41,800 @ 20%
Balance @ 41%
Balance @ 41%
Married Couple both spouses
with Income
€45,500 @ 20%
€41,800 @ 20%
with increase of €27,400 max.
with increase of €23,800 max.
Balance @ 41%
Balance @ 41%
Married
Tax Bands
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Calculated below is the would be effect of the reduction in tax credits and tax bands on a single individual with a
pension of €38,649 (Inspector) ignoring the PSPR:
2010
2011 - 2014
€36,400 @ 20% :
€7,200 €32,800 @ 20%:
€6,560
Balance of €2,249 @ 41%:
€ 922 Balance of €5,849 @ 41%:
€2,398
Total Tax:
€8,122 Total Tax:
€8,958
Less Tax Credits:
Less Tax Credits:
Single Credit
€1,830
Single Credit
€1,650
PAYE Credit
€1,830
PAYE Credit
€1,650
Age Credit
€ 245
Age Credit
€ 325
Total Tax Credits:
€3,985
Total Tax Credits:
€3,545
Total Tax Due:
€4,137
Total Tax Due:
€5,413
Based on the example above, the individual has additional tax to pay in the amount of €1,276 per year. These
figures can change considerably depending on the level of pension.
Local Property Tax (LPT)
An annual self-assessed Local Property Tax (LPT) charged on the market value of all residential properties in the
State came into effect on 1 July 2013. It is being administered by Revenue and a half-year charge applied in 2013.
A full year charge applies in 2014.
The yearly LPT charge for 2014 can vary from €90 - €1,755 depending on the market value of the property.
Properties over €1m are assessed on the actual value at 0.18% on the first €1m and .25% on the portion above
€1m.
Mortgage Interest Relief
The Supplementary Budget 2009 altered the qualifying criteria for Mortgage Interest Relief. The number of tax
years in respect of which mortgage relief may be claimed was curtailed. Relief may not be claimed on the interest
paid on a qualifying home loan in the 8th and subsequent years of the life of the loan.Your entitlement to
mortgage interest relief depends on the relevant start date of the loan, as follows:
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


If you started paying the mortgage in 2003 or earlier, your entitlement expired in 2009.
For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will
continue until the end of 2017.
Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief.
While this may not apply to many GSRMA members who no longer hold mortgages, it has impacted some
members who retired in their fifties having completed full service.
Deposit Interest
The rate of Deposit Interest Retention Tax (DIRT) applied to deposit interest earned has increased from 20% in
2008 by various amounts in the intervening years to the present rate of 41% in 2014.
DIRT is deducted at source by banks, building societies, credit unions, etc. from interest paid or credited on
deposits of Irish residents. The increased DIRT rate acts as a disincentive to encouraging people to save and this
could result in people being an increased burden on the State in the later years of their life. Many GSRMA
members who received a lump sum payment upon retirement prudently opted to put these monies on deposit for
the “rainy day”. The present rate of DIRT when applied to present day interest rates negates the value of returns
on any sums invested.
In raising the rate of DIRT over the past few years, consideration should have been given to retired people who no
longer have alternative means of income generation and who have prudently saved to meet, for example, future
medical or nursing home bills. In the event that they do not meet the €18,000 tax exemption for a single person or
€36,000 for a married couple, they are subject to the 41% rate of DIRT. A lower rate of DIRT should apply to
savings for persons aged over 65 years of age on say the first €100,000 for a single person or €200,000 for a
married couple.
Health & Medical
Tax relief on Medical Expenses
For the tax years up to and including 2008, income tax relief was available at the marginal rate in respect of
certain unreimbursed medical expenses. With effect from 1 January 2009, the relief is granted at the standard rate
of tax, presently 20%, with the exception of expenditure incurred in respect of nursing home expenses. This
coincides with rising costs of GP visits, drugs and health insurance which obviously have a larger impact on
retired people who on average will have higher medical bills.
Medical Insurance – Rising Premiums and Reduction in Tax Relief at Source
Since 2008, the cost of medical insurance has more than doubled in Ireland and coupled with the reduction in tax
relief at source on the premiums, the retention of private medical insurance is becoming prohibitive for members,
ironically, at a time in their lives when members are more likely to require the benefits of the cover either through
illness or for orthopaedic procedures such as hip or knee replacements.
Budget 2014 introduced a new restriction on the relievable amount of medical insurance premiums for policies
which are renewed or entered into on or after 16 October 2013. Relief is now restricted to the first €1,000 per
adult policy holder and the first €500 per child.
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The impact of this change is best explained by an example;
Example: An individual married with two children paying €3,000 per annum to their insurer prior to 16 October
2013. This is the net figure after tax relief at source of 20%. Gross premium before tax relief is €3,750.
The revised tax relief will be as follows:
Adults
Gross premium before tax relief (€1,500 x 2):
Maximum premium on which relief available (€1,000 x 2):
€3,000
€2,000
Tax relief @ 20%:
€ 400
Adult premiums net of tax relief:
€2,600
Children
Gross premiums before tax relief (€375 x 2):
€ 750
No restriction
Tax relief @ 20%:
€ 150
Child premiums net of tax relief:
€ 600
Summary:
Total net premiums pre 16 October 2013:
€3,000
Total net premiums post 16 October 2013:
€3,200
Increase in cost of premium:
€ 200
Medical Cards, Prescription Charges & Drugs Payment Cards
The Government revoked the entitlement of all individuals aged 70 years and over to an automatic medical card
without a means test in 2008. With effect from 1 January 2009, a means test was introduced and the income
limits for this means test have been reduced further in recent years. The initial income limit was set at €700 per
week for a single person and €1,400 for a married or cohabiting couple but this was reduced to €600 for an
individual and €1,200 for a married couple and subsequently has now been reduced to €500 per week for a single
person with effect from 1 January 2014 and €900 per week for a married or cohabiting couple.
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In addition to this, the prescription charge has risen from its initial 50cents per item in 2011 to €1.50 per item in
2012 and now stands at €2.50 per item.
The threshold on the Drugs Payment Card scheme has risen from €120 in 2011 to €132 in 2012 and the threshold
was further increased to €144 in 2013.
Summary
All of these measures directly impact GSRMA members, many of whom must incur this expenditure out of
necessity owing to age and ill-health. These additional medical costs coupled with pension reductions and
increased taxes serve to have a significant impact on standards of living.
Furthermore, the proposed introduction of a compulsory universal health insurance which certain reports
estimates at €1,600 per annum will have additional implications and there is no suggestion of corresponding tax
reductions to mitigate this additional cost.
Water Charges
The introduction of Water Charges is set to take effect from 1 January 2015. To date, the Minister has not yet
signalled an indicative cost for these charges but there does not appear to be any automatic exemptions planned
for retired people. These charges when introduced will further add to the financial burden on people who have
retired and whose income is predefined in most cases.
Furthermore, these charges follow on from increased charges for utilities such as electricity, gas and other fuels.
Increase in VAT rate
The standard rate of VAT was increased from 21% to 23% with effect from 1 January 2012. This increases cost of
living for all individuals. The goods and services affected are common day to day expenditure items and include
as follows:







Transport Fuels – petrol, auto diesel, motor oil
Vehicles – cars, lorries, tyres etc
Drinks & Cigarettes – Alcohol, soft drinks, bottled water etc
Consumer Goods
Hiring/Leasing
Certain Services – accountancy services, advertising, haulage, professional services (legal)
Confectionery
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Overall Effects of Public Service Pay Reductions & Taxation
Changes
The tables below show the overall net effect of the recent cutbacks to each member’s pension detailing the
additional costs to a single individual aged 65 years or over, albeit a reduced maximum 4% rate of USC may
apply to individuals aged 70 years and over whose total annual income is €60,000 or less. The table looks at the
comparison between the tax year 2008 and the current tax year 2014.
Garda
2008
2014
Difference
Public Service Pension
€31,654.00
€30,245.00
€1,409.00
PAYE
€2,345.80
€2,504.00
€158.20
USC
0
€1,435.95
€1,435.95
Total
€29,308.20
€26,305.05
€3,003.15
2008
2014
Difference
Public Service Pension
€35,483.00
€33,145.00
€2,338.00
PAYE
€3,129.03
€3,156.45
€27.42
USC
0
€1,638.95
€1,638.95
Total
€32,353.97
€28,349.60
€4,004.37
Sergeant
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Inspector
2008
2014
Difference
Public Service Pension
€38,649.00
€35,931.00
€2,718.00
PAYE
€4,427.09
€4,298.71
-€128.38
USC
0
€1,833.97
€1,833.97
Total
€34,221.91
€29,798.32
€4,423.59
2008
2014
Difference
Public Service Pension
€50,550.00
€46,404.00
€4,146.00
PAYE
€9,306.50
€8,592.64
-€713.86
USC
0
€2,567.08
€2,567.08
Total
€41,243.50
€35,244.28
€5,999.22
2008
2014
Difference
Public Service Pension
€62,011.00
€56,389.00
€5,622.00
PAYE
€14,005.51
€12,686.49
-€1,319.02
USC
0
€3,421.22
€3,421.22
Total
€48,005.49
€40,281.29
€7,724.20
Superintendent
Chief Superintendent
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Assistant Commissioner
2008
2014
Difference
Public Service Pension
€71,864.00
€64,567.00
€7,297.00
PAYE
€18,045.24
€16,039.47
-€2,005.77
USC
0
€3,838.49
€3,838.49
Total
€53,818.76
€44,689.04
€9,129.72
2008
2014
Difference
Public Service Pension
€83,489.00
€74,216.00
€9,273.00
PAYE
€22,811.49
€19,995.56
-€2,815.93
USC
0
€4,513.92
€4,513.92
Total
€60,677.51
€49,706.52
€10,970.99
2008
2014
Difference
Public Service Pension
€116,250.00
€99,620.00
€16,630.00
PAYE
€36,243.50
€30,411.20
-€5,832.30
USC
0
€6,292.20
€6,292.20
Total
€80,006.50
€62,916.60
€17,089.90
Deputy Commissioner
Commissioner
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Position for GSRMA members (Garda to Inspector rank) who retired before 1993
Garda
2008
2014
Difference
Public Service Pension
€25,654.00
€24,785.00
€869.00
PAYE
€1,145.80
€1,412.00
€266.20
USC
0
€1,053.75
€1,053.75
Total
€24,508.20
€22,319.25
€2,188.95
2008
2014
Difference
Public Service Pension
€29,483.00
€27,865.00
€1,618.00
PAYE
€1,911.60
€2,028.00
€116.40
USC
0
€1,269.35
€1,269.35
Total
€27,571.40
€24,567.65
€3,003.75
2008
2014
Difference
Public Service Pension
€32,649.00
€30,651.00
€1,998.00
PAYE
€2,544.80
€2,585.20
€40.40
USC
0
€1,464.37
€1,464.37
Total
€30,104.20
€26,601.43
€3,502.77
Sergeant
Inspector
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Position for GSRMA members (Superintendent & Chief Superintendent rank) who
retired before 1998
Superintendent
2008
2014
Difference
Public Service Pension
€42,750.00
€39,540.00
€3,210.00
PAYE
€6,108.50
€5,778.40
-€330.10
USC
0
€2,086.60
€2,086.60
Total
€36,641.50
€31,675.00
€4,966.50
2008
2014
Difference
Public Service Pension
€54,211.00
€49,626.00
€4,585.00
PAYE
€10,807.51
€9,913.66
-€893.85
USC
0
€2,792.62
€2,792.62
Total
€43,403.49
€36,919.72
€6,483.77
Chief Superintendent
Universal Social Charge
The Universal Social Charge (USC) replaced the income levy and the health levy. Before the introduction of the
income levy, members would have been exempted from levies on reaching 70 years of age. No such exemption
now applies with regard to the USC. Instead individuals aged 70 years and over must continue to pay USC.
LPT
Based on a property valued between €200,001 and €250,000 an individual would be paying an annual LPT charge
in the amount of €405.
Medical Insurance
On average a married couple could be paying circa €3,200 gross for medical insurance. As the relief is to be
restricted to the first €1,000 per adult policy holder, the additional cost per year is €240.
Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association | 19
Conclusion
The analysis of the impact of recent Public Service Pension Reductions and additional taxes that we have
undertaken shows the demonstrable and real financial impact felt by members of the GSRMA and their families
and the challenges that the members face as a consequence in their ordinary daily lives taking account of increases
in the cost of living through increases in essential costs in the area of utilities, medical costs and travel costs.
Heretofore however, despite being excluded from negotiations in the main regarding public sector pay reductions,
the members have played their part and accepted the cutbacks.
As the Irish economy shows signs of recovery, one of the priorities of Government should be to review the
position of those who are more vulnerable in society. This sector of people includes pensioners who due to age
and often infirmity have little or no ability to control their income having left employment or who are unlikely to
have opportunities to generate new sources of income. The members of GSRMA have dedicated their working
lives to serving the police force of this country and contributed to the development of the country through the
creation and maintenance of safe environs which has been key in the development of indigenous Irish businesses
and in attracting foreign direct investment into this country leading to the creation of thousands of jobs.
It is difficult to foresee circumstances which would allow for the restoration of previous pension cuts in the short
term but some gesture towards persons who have contributed significantly to society and who were not
responsible for the economic crash would help to alleviate the sense of unfairness felt by members. This could be
achieved through a variety of means including for example, revisions to the Universal Social Charge legislation,
an increase to the age credit, restoration of full tax relief at source on medical insurance premiums and/or
exemption from proposed new water charges. Consideration should be given to a two tier DIRT system where
DIRT at the standard rate of tax, presently 20%, would apply to the first €100,000 of savings for a single person
and €200,000 for a married couple. Savings in excess of these amounts would be liable to DIRT at the higher rate
of 41%.
The members of GSRMA are part of the wider generation of retired people who have served our country well and
it behoves Government and citizens alike to cherish and recognise the contributions of these people during their
working lives and not to bestow upon them a sense of being unwanted or representing a burden to the State. Now
in retirement, they deserve freedom from financial worry to enjoy the fruits of their labour!
Report on the Impact of Pension Reductions
& Additional Taxation Measures to the
Garda Síochána Retired Members Association | 20
FOR FURTHER INFORMATION
PLEASE CONTACT:
Colm Browne, Tax Partner
OBI, Third Floor, Mount Kennett House, Henry Street, Limerick
T: 061-401122 E: cbrowne@obi.ie
www.obi.ie
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be
relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific
professional advice. Please contact OBI to discuss these matters in the context of your particular circumstances. OBI, its partners, employees and agents do
not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this
publication or for any decision based on it.