McDaid cuts losses with pension perks

RUNAWAY deputy Jim McDaid will receive more than three times the current average industrial wage for the rest of his life because of the 21 years he spent in Dáil Éireann.

He will also receive €225,636 in lump sum payments for calling time on his political career. Just €78,000 of this is subject to a claim by the taxman.

Because of rules politicians brought in to decide their payments and perks, Dr McDaid is entitled to €16,000 simply for standing down.

This termination lump sum will be supplemented for the next six months by a payment of 75% of his departing salary. For the next six months he can claim 50% of this salary to help him parachute back into normal life.

A separate pension lump sum is also paid at the start of the pension proper, this happens in a year, and this will give him €147,636.

His TD’s pension will be €72,000 but this will be augmented by the ministerial perks he built up during his term at the cabinet table and as junior minister for transport.

The financial incentives for Dr McDaid remaining a TD reduced dramatically in recent times. A TD’s pension is capped after 20 years’ service. This meant once he saw through 2009 he was not eligible for any addition increments.

He was also affected by the ban on sitting TDs claiming pensions for being former ministers.

If he had fought for, and won, a seat in the next election he would not have been able to claim his €22,487 ministerial pension while still a member of Leinster House.

On his death his wife would be entitled to half his overall pension.