Govt announces additional levy on top public sector pensions

Retired public servants on “gold-plated” pensions have been hit with a new top-rate 20% levy.

Govt announces additional levy on top public sector pensions

Retired public servants on “gold-plated” pensions have been hit with a new top-rate 20% levy.

Public Expenditure Minister Brendan Howlin revealed that former taoisigh and ministers will lose a fifth of pension payments above €100,000.

It would also affect former office-holders such as the president, the top rungs of the civil service, senior members of the judiciary such as chief justices, and heads of universities.

Mr Howlin said: “I think there’s an understanding that in the circumstances the country finds itself that those with the broadest shoulders bear the greatest burden.”

Former taoisigh Bertie Ahern and Brian Cowen, who receive around €150,000 a year, could expect an annual reduction of around €18,760.

Sinn Féin president Gerry Adams earlier challenged Taoiseach Enda Kenny on what he described as the obscene payments to the elites.

“You say many times that we’re all in this together, but there are 30 former politicians earning pensions in excess of €100,000,” said Mr Adams.

“These elites take this money home every single year and it’s coming out of the people’s pockets. So we’re not all in this together.”

It is estimated the 20% levy, which will apply across the board to current and future retirees from January, will save the Government some €400,000 a year.

“While the savings are again modest, I believe the measure should be implemented in the broad public interest,” Mr Howlin said.

“I consider this progressive amendment is also in the broad public interest and is just and equitable in all the circumstances.”

Mr Howlin proposed the amendment under the Financial Emergency Measures in the Public Interest Acts.

The motion, delivered to the Dáil, will then go to the Seanad for consideration.

Those receiving between €60,000 and €100,000 will be subject to the existing 12% levy.

Mary Lou McDonald, Sinn Féin spokeswoman on public expenditure and reform, attacked Mr Howlin's amendment as a scandal.

She said the Government has still failed to tackle the issue because retirees receiving massive pensions will still receive more than €100,000 after the levy.

“Fine Gael and Labour have yet again failed to tackle the thorny issue of bumper annual pensions paid out to former Taoisigh, Government ministers, judges and secretaries general,” said Ms McDonald.

“The additional pension levy measure announced by Minister Howlin amounts to a mere additional 8% reduction on pension income over €100,000 as these pensions are already subject to a 12% reduction.

“In real terms, this means former Taoisigh Bertie Ahern and Brian Cowen’s annual pension payment will be reduced by a mere €4,000, leaving both in receipt of a pension to the tune of a massive €147,000 each year.”

Ms McDonald pointed out that some of those in receipt of public service pensions over €100,000 euro are still working in the private sector.

“Paying out whopping great pensions to high rollers from the public sector during a time of economic crisis is a scandal,” she said.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

National Risk Assessment for Ireland Tánaiste urges Israel ‘to show humanity’ and allow more aid into Gaza
Lego set based on RNLI lifeboat could soon become a reality Lego set based on RNLI lifeboat could soon become a reality
Travel Stock - Geneva - Switzerland UN human rights body calls for repeal or amendment of Troubles legacy laws
War_map
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited