Budget 2014 - RASA Letter to Ministers

RETIRED AVIATION STAFF ASSOCIATION

COMHLACHAS IAR-FHOIREANN EITILEORACHTA

A.L.S.A.A. COMPLEX, DUBLIN AIRPORT, IRELAND

Website: https://sites.google.com/site/retiredaviationstaffassoc/

21^st October 2013

Mr Michael Noonan, Minister for Finance.

Mr Brendan Howlin, Minister for Public Expenditure.

Mr Leo Varadkar,Minister for Transport.

Cc

Ms Joan Burton, Minister for Social Protection.

Micheál Martin, TD.

PENSIONER ISSUES

Dear Ministers

RASA is disappointed on behalf of its pensioner members at the severe cuts and concentration on reducing, cutting back, removing altogether, benefits which were part of the income of pensioners. On top of the cut back you decided to increase the Pension Levy for 2014 and continue it into 2015 at least. It is not good enough to say that pensioners still have a number of benefits. You might say that when the bailiff or sheriff comes to take away your goods he left the “bed”.

Since 2011 the following have been imposed on pensioners:

Universal Social Charge – first of all at 4% and then at 7% for all income if your pension is in excess of €60,000. It is not just for the portion over €60,000. We wonder why not.

Removal of Medical Card for over 70s – at the beginning at an income level of €36,500/€73,000 per individual or couple which was reduced progressively to €26,000/€46,800 for this year.

This year the reduction of tax allowance on Private Health Insurance contributions. Since when did Plan B + Options become “GOLD PLATED” for two people? The cost of this cover has tripled over the last three years and now stands at €3,400 in 2013, that figure with your new tax claw back will rise by another €1,000 when you take account of tax and proposed increases. Older people pay more and spend more on health, or are they a burden and should die off? Notwithstanding the fact that you increase the cost of Medical Insurance, you now intend to charge Private Health Insurers with extra costs for Public Beds in Public Hospitals. Ministers, all of the older people paid for this service with our lifetime P.R.S.I. contributions.

Pension Levy. We complained when the Levy was first introduced. The outcome was that pensioners had their pensions reduced by 2.5% for life. You now further impose a new Levy on pensions, many of which will cease to exist. It is indeed ironic that the Irish Airlines Superannuation Scheme (IASS), which is in difficulty, was owned by its main shareholder, the Minister for Finance, who signed off on a pension that would be satisfactory. You, Ministers for Finance and Transport presided over the IASS fund, its Trust Deed and Rules, and carry a considerable responsibility for its condition today. You are aware of the deficit in the fund.

Home Package. This year the telephone line-rental is removed and in the past, there has been a reduction in the gas and electricity allowance. The fuel allowance was also reduced in the past.

You may not believe this but old people have a right to live and to die. You have increased DIRT to 45% and removed the Death Grant. It is your theory that it will force people to spend. Well! The older generation have to save so that they can get a Nursing Home, if required, and to cover death expenses. They might as well now use the mattress.

Prescription Charges for those lucky to have a Medical Card have increased significantly, with a cap of €25 per month.

Together with all these issues there is a collective cost imposition on pensioners:

- The Household Charge, which is now the Property Tax

- There has in the past been a reduction in Tax Credits, and an imposition of waste charges and down the track water charges.

All of these charges are a serious burden on pensioners who in the most cases rely on fixed incomes.

Pensioners made this State. They educated their children when they had to pay. They seldom took a holiday but paid excessive interest rates on relatively high mortgages and PAYE at up to 68%. Today they support their children by subventions towards mortgages, childcare and paying expenses. If today’s older people did not carry this burden, we would not have the standards of today which despite the downturn are much better than 1970s/80s/90s.

Ministers, take care of the old, this country needs them.

Yours sincerely.

Arthur McSwiney

Chairman