Top 500 public sector pension earners cost €50m annually

Pearse Doherty: Figures ‘obscene’ as economy struggles with low pay and austerity

Figures released to SF finance spokesman Pearse Doherty reveal there are 500 pensioners in the top category of pension earnings, receiving more than €100,000 in payments annually. Photograph: Getty Images
Figures released to SF finance spokesman Pearse Doherty reveal there are 500 pensioners in the top category of pension earnings, receiving more than €100,000 in payments annually. Photograph: Getty Images

Five hundred public sector pension earners have pensions of more than €100,000 each, costing the state an estimated €50 million annually.

Sinn Féin finance spokesman Pearse Doherty has described the figures released to the Donegal TD in reply to a written parliamentary question, as "obscene".

The figures reveal there are 500 pensioners in the top category of pension earnings, receiving more than €100,000 in payments annually.

Those on the largest level of pension earnings, include former senior public servants, taoisigh and government ministers.

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Mr Doherty released the figures as it emerged that 2012 legislation to break the link between public sector pay increases and public sector pensions was not fully implemented.

The legislation was intended to ensure pensions would increase in line with the cost of living rather than with the cost of public sector salary increases which is higher.

But 300,000 public sector employees will receive bigger pensions because the law was not fully implemented, according to a report in a Sunday newspaper.

The only people for whom the change was made were the 54,000 teachers, nurses, gardaí and public servants who were recruited since 2012.

It is understood that 250,000 current public sector employees will still benefit from pay increases rather than cost of living increases after they retire.

Largest category

In the 2013 figures released to Mr Doherty, almost 150,000 former public servants are included. They include the largest category of 54,600 pensioners on amounts of more than €10,000 but less than €15,000. The overall cost to the State this year for the lowest category is €230 million.

The largest category cost is €585 million for 17,400 pensioners on annual payments of greater than€35,000 but less than €40,000.

The figures increase in incremental bands of €5,000 up to the 500 pensioners receiving more than €100,000 though individual amounts are not detailed.

Mr Doherty said “if nothing else the figure gives a lie to the idea that we all suffered equally or that even the very top need a break. They do not. They are still protected and getting huge pensions each year.”

Minister for Public Expenditure and Reform Paschal Donohoe said in the reply that the data from 2013 includes the improvements from the Financial Emergency Measures in the Public Interest 2015 Act, which began the restoration of pay and pensions.

Mr Doherty said it was “especially obscene as the economy struggles with low pay and the scars of austerity that the top few public sector pensioners are reaping such big payments; presumably those 500 include many former politicians whose actions cost the Irish people so much”.

He said “given the size of the country, an informed source could almost name the individuals costing such a huge sum of money each year”.

Mr Doherty added: “What impact would that €50million have if spent on recruiting guards or nurses? These are political choices ultimately.”

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times