Council puts the heat on firemen

ENNIS firemen are up in arms after receiving a letter from Clare County Council requesting additional deductions for the controversial pension levy.

The firefighters, who have previously objected to implementation of the government’s 7.2% pension levy from their overall weekly earnings without the receipt of a State pension, were incensed when the authority sought extra payments because of a miscalculation.
Their campaign to seek a removal of the pension levy is being supported by the National Retained Fire-Fighters’ Association (NRFA) and SITPU, who have objected to the levy and the terms being offered under the current Local Government Superannuation Scheme (LGSS).
Clare firemen have called on Environment Minister Phil Hogan to remove the current anomaly, which provides them with a once-off gratuity payment of €17,000 based on years of service when they retire at 55 years of age.
Ennis firemen were sent a letter by the council’s finance section requesting under-payments of between €200 and €300 depending on their workload.
According to a copy of a letter sent to one fireman, the council’s payroll software package performs an exercise whereby it calculates the total pension levy due and compares the amount due to the levy paid during the year. This can sometimes result in an under or overpayment of the pension levy, which was adjusted in the December pay. The council stated that it was agreed that no adjustment would be made and no pension levy was deducted in the December payment because the payroll software package was introduced midway through 2010.
The authority proposed the additional sum would be taken from pay in two equal instalments when payment or retainer fee was processed next June and September.
“From mid-2011, pension levy will be calculated on a cumulative basis and not on a monthly basis like the situation in 2010 and to date, thus eliminating the need to carry out a reconciliation of pension level at the end of the financial year,” the letter stated.
Ennis-based retained firefighters Freddie Nightingale, Michael O’Leary, Brian Rudd, Billy Cusack, Danny O’Connor and Danny Keller have previously objected to the payment of the levy since March 2009 without the benefit of any State pension entitlement.
Danny Keller admits he took up the offer to put some financial renumeration in place for his retirement even though he wasn’t happy with the terms of the scheme.
“I believe the deduction of the pension levy from our wages is illegal. It is unjust that we are being forced to make payments when we are not benefiting from a pension.
“Firefighters have no problem paying their way and paying a pension levy if we were getting a proper pension. We are still waiting for Clare County Council to get back to us concerning the local government scheme.
“A lot of firemen don’t want to join this scheme because they could end up paying seven or eight times more than they would get out of it.
“I would end up paying in over €80,000 in contributions for a once-off lump sum of €17,000, which would be taxable and would end up with half of this,” he said.
Firemen were told last year the council would be making staff resources available to work out the details of the LGSS, which involved a significant amount of checking of records to establish the firemen’s actual working hours, which was complicated by overtime payments.
Because of the specialist nature of this work, this required someone with knowledge of the superannuation scheme. The council expected this work should be completed before the end of May.
However, Mr Keller pointed out this never happened and the firemen never heard from its employers since then.
Director of service, Ger Dollard explained the application of the pension levy to firemen was done in accordance with the legislation and was a matter for national review rather than local discretion.
Mr Dollard admitted there have been some overpayments and underpayments of levy and noted arrangements were now being made to refund overpayments and to address underpayments.
“I am sure that any issues arising for firemen who have opted for the pension scheme will be addressed by the Humans Resources Department directly with the firemen involved,” he said.