Dempsey becomes latest FF retiree... but €316k windfall will soften blow
The Meath West TD announced yesterday he will step down at the election after 13 years as a senior minister and 33 years as a public representative.
It is more lucrative for Mr Dempsey to go now, as he would have earned only €98,400 as a TD if he had returned to the opposition benches in the Dáil after the election.
Instead, Mr Dempsey, who turns 58 in January, will qualify for massive severance payments and a generous pension. In the first 12 months after his retirement, Mr Dempsey stands to receive total payments of over €316,000, consisting of:
- A tax-free Dáil pension lump sum of €159,000.
- A “termination” lump sum of €17,000 and termination payments of €39,900 over the first six months to cover the loss of his TD’s salary.
- €29,500 over the second six months reflecting half his annual TD’s pension.
- €70,730 in graduated minister pension payments.
After year one, Mr Dempsey will then revert to his combined TD and ministerial pension, which will come to circa €134,000 a year. He will be hit by the public service pension cut announced in the budget, however, which will see 12% taken off, reducing it to circa €118,000 a year. Even then, it will be comfortably more than a TD’s salary.
However, Mr Dempsey rejected suggestions he was leaving for the money. “That isn’t a factor… I’ll contribute just over 50% of that pension that I now get to the state to go back into the services of the state in my taxes and pension levies.” He also denied suggestions he feared losing his seat were he to run again.
“Every election you stand in your seat is at risk, but I don’t think mine was at a particular risk.”
Taoiseach Brian Cowen expressed regret at the decision, saying Mr Dempsey had enjoyed a “long and distinguished career”.
Mr Cowen also conceded the recent wave of retirements was not ideal. “You would rather have them on the team going into the next election than not,” he said.
The Oireachtas, meanwhile, said TDs and senators contribute 6% of their salary toward their pension entitlements and the amounts paid are based on “standard civil service rates”.
