TD Pension Cuts Loom

The Government is to cut the early payment of pensions to sitting TDs.

However, the proposal would only bring about a saving to the Exchequer of around €162,000 each year.

Currently, ex-ministers are paid half of their pension entitlement while still serving in the Oireachtas.

These existing payments would be cut by one quarter by such a move.

Before a 1992 reform, members of the Dail or Senate had been enjoying full pensions, as well as their salaries.

Finance Minister, Brian Lenihan, said that "there are a few office holders for whom it might be more lucrative to retire at the next general election."

For example, former Premier Berie Ahern's current pension would be cut by €27,500 and if he stays a TD after the next election he would lose his extra money completely.

He is now receiving a pension of €110,000 on top of his Dail salary, for a total of €221,000 annually. With the remainder of this Dail his pension payment will be of €82,500.

If Mr Ahern retires at next election, he would drop to his €110,000 pension alone, being free to earn other income. This means he would be €10,000 better off than if he keep working as a TD for Dublin Central.

The new Bill will be rapidly enacted before the summer recess, according to Lenihan, letting all candidates going forward for election know about their position.

The Attorney General, who has given legal advice to the Government, recommend them not to reduce the current payment by more than 25%, as it is constitutionally impossible to do so.

Mr Lenihan said that they decided to opt for a maximum and cut payments by a quarter.

The Minister remarked that professional fees paid by the State to doctors, lawyers, architects, vets and others has been reduced by 8%, as the legal advice has considered that no section of society should be – in Lenihan words – "disproportionately affected" by any Government move.

(AC/BMcC)