Isme is calling on private sector workers across the country to donate money to support a campaign to create an equitable system for private sector pension savers.
The Irish SME Association (Isme) is looking to raise €500,000 to support three plaintiffs who will challenge tax discrimination against private sector workers before the High Court, arguing that the pension system favours public sector workers.
The funds raised will support the formation of a technical team giving tax guidance, pensions expertise, and actuarial assistance together with tax and constitutional law advice for the pension’s equity challenge. Isme intends to initiate proceedings in the High Court this year.
The association wants business owners and individuals within the SME business community to contribute € 100, or whatever they can afford, to support the challenge. It is calling on pension providers to donate a minimum of € 10,000 each. Isme also will engage with private sector workers, pension trustees, pension brokers and other interested parties who have raised this issue previously, to build the necessary funds.
Isme’s goal in pursing the action is: to ensure private sector workers are not penalised for trying to save a pension pot of equivalent value to that which is provided to a public sector worker for little (or no) contribution; to allow private sector workers to save what they feel is appropriate to give them a decent standard of living post-retirement; to ensure that there remains an incentive for private sector workers to save money for their pensions; and to minimise the burden on society caused by the pension deficit.
Neil Mc Donnell, chief executive of Isme, said that "as far as is possible", private sector workers and SME owners should enjoy parity with public sector workers in our pensions system.
“Every private sector pension saver will benefit from a successful court challenge and we are asking for funding support so this can be achieved. It is ironic that those in the public service who declare tax relief on private pensions to be “tax expenditures” are themselves the beneficiaries of an enormous transfer of wealth from private sector workers to the public sector. Tax relief on private sector pensions savings is tax deferred, not tax avoided. With the support of the SME community, we have a great opportunity to fix this and to ensure a fair pension system on behalf of private sector workers,” he said.
To date, some €1,620 for the campaign has been raised via a GoFundMe page, which can be seen here. Any undisbursed funds raised via the GoFundMe campaign will be donated to Social Entrepreneurs, The Jack and Jill Foundation, and The Friends of the Royal Hospital Donnybrook.
