Small business group SME is considering bringing a test case to the High Court aimed at addressing what it sees as unfairness in how private sector pension savers are treated compared with their counterparts in the public service.

The organisation claims the current tax system discriminates against private sector workers.

ISME says it has been contacted about the issue by a range of private sector workers, pension trustees, pension brokers and other interested parties.

“ISME is in discussion with interested parties to bring a test case to the High Court,” a statement said.

Invite to interested individuals

“It invites more individuals with an interest in the area to contact us, and to let us know if they are interested in participating in the test case, or assisting us in getting it before the court.”

It said the planned test case would cover a number of areas, including ensuring that private sector workers were not penalised for saving into a pension pot of equivalent value to one that which is provided to a public sector worker.

ISME also says private sector workers should be allowed to save what they feel is appropriate to give them a decent standard of living post-retirement. It has previously expressed concern about the €2 million cap on total pension contributions.

Public servants

It also argues that public servants’ pension contributions do not cover the cost of their pensions.

“There is currently a twin-track approach to pensions in Ireland where those who work in the private sector cannot avail of supports from the State, while those working in the public sector do,” said ISME chief executive Neil McDonnell.