HSE pays total of €8.2m to 25 retirees

TWENTY-FIVE consultants who retired from the HSE last year received tax-free retirement lump sums in excess of €8.2 million.

The tax-free bonanza for retiring consultants is revealed in figures made available under the Freedom of Information Act and show that the top 25 retirement payments in 2010 were all paid to HSE consultants who received amounts ranging from €330,691 to €412,384.

One consultant psychiatrist received €412,384 on retiring in September of last year while two other consultant psychiatrists received €407,621 and €405,656 respectively.

The figures also show that a consultant obstetrician received €397,117 with a consultant general physician receiving €382,169.

The figures also reveal an increase in the number of retirement lump payments over the past two years.

The figures show that 2,248 employees retired from the HSE in 2010 and received a total of €97.3m. This compares with the 2,609 who retired in 2009 and who received a total of €153.8m.

The figures for 2008 show that 1,787 staff retired and received €88.35m.

The 46% increase between 2008 and 2009 and the 25% between 2008 and 2010 may be explained by the government of the day indicating in 2009 that it intended to make changes to the taxing of retirement lump sums.

Changes in relation to retirement lump sums were made in the Finance Act of 2011 with any amount over €200,000 and under €575,000 now being taxed at the standard rate of 20%.

In response to the figures, Fianna Fáil health spokesman Billy Kelleher said that, while the pay-outs were undeniably high, they were received as part of agreed contracts.

“You can’t tear up those terms and conditions,” he said. “What we can deal with is the present and the future and make sure future awards take into account the economic circumstances that we find ourselves in.”

Commenting on the issue last night, psychiatric consultant Dr Moosajee Bhamjee, who retired from the HSE last month, said the payments complied fully with the laws of the land.

“If you want changes, you change the law. We fought for these conditions and rights, we must not just give them away,” he said.

The HSE did not respond to a request for comment last night.