TDs IN receipt of ministerial pensions have been asked to respond by Friday to the Government’s proposal that the payments should be cut to give a good example in the current economic crisis.
Minister for Finance Brian Lenihan wrote on Monday to the 27 serving TDs who receive ministerial pensions expressing the Government’s view that they should accept proportionate reductions and asking for their response.
Taoiseach Brian Cowen announced last week that the plan to discontinue ministerial pensions, announced in the Budget, would come into effect only after the next election as there were legal issues involved in taking away the payments now.
He added, however, that he hoped there would be a proportionate reduction in the pensions and the Minister has now written to the TDs involved asking for their ideas on the issue by Friday.
It is understood that the original plan in advance of the Budget was to cut the pensions paid to serving TDs in half, but legal concerns led to a more general commitment being made in the Budget speech.
Once the legal requirement to consult the TDs has been effected at the end of this week, Mr Lenihan will bring proposals to Cabinet and the Government will make an early decision on the reductions it proposes to make.
The Minister hopes to have legislation approved by Cabinet and passed through the Dáil and Seanad by May 14th.
The deadline arises because the Government also intends to legislate to phase out the current scheme of long-service increments for TDs. While this will not apply to TDs who already have increments, it is designed to prevent a further group of TDs from qualifying on May 15th.
At present, TDs who are entitled to receive ministerial pensions are paid half their entitlement while they are still in the Dáil. Once they retire from politics, they can then draw their full ministerial pension.
The system makes Bertie Ahern the highest pension earner in the current Dáil.
He receives a payment of €111,235 on top of his TD’s salary of €106,582, according to figures provided in response to a Dáil question in February.
Other major beneficiaries of the system are former Labour leader Ruairí Quinn, who receives €46,852, Frank Fahey of Fianna Fáil who gets €41,846, and former Fine Gael ministers Michael Noonan and Seán Barrett, who receive just over €32,000 each.
Former Fianna Fáil minister Mary O’Rourke, who is entitled to a pension of €56,877, gave it up earlier this year before the Budget announcement. Eamon Gilmore, Joan Burton and Liz McManus of the Labour Party and Jimmy Deenihan of Fine Gael also forfeited their pensions voluntarily.
TDs are not the only people who are entitled to draw ministerial pensions. The Chief Justice of the Supreme Court, John Murray, receives a pension of €73,234 for his service as attorney general, on top of his judicial salary of €295,916. Former taoiseach John Bruton, who is the EU ambassador to the US, receives a ministerial pension of €100,371 while EU commissioner Charlie McCreevy gets a pension of €75,003.
