Top retired public servants to avoid budget pension cut

RETIRED politicians, judges and other senior public servants will not be forced to take a cut in their gold-plated pensions in next week’s budget.

The Cabinet discussed cutting public pensions in excess of €100,000. But Government sources yesterday said this was not going to happen because the savings generated would not be enough to justify the cut.

Figures published last month showed 30 retired politicians are paid pensions in excess of €100,000 including Bertie Ahern and Brian Cowen who get more than €150,000.

Most members of the last cabinet — many of whom have not reached retirement age — are earning pensions of around €120,000.

A further 100 public servants also earn pensions above €100,000 along with 13 former Supreme Court and High Court judges.

Last January, a reduction of 12% was applied to all public service pensions in excess of €60,000. The Government recently sought the advice of the Attorney General, Máire Whelan, on whether a bigger reduction could be applied to those over €100,000.

The Cabinet believed such a move would be favourable from a public perception point of view by highlighting that the richest would be sharing some of the €3.8 billion in cuts to be announced next Tuesday.

But it found savings would be “minuscule” and would not be allowed under the Financial Emergency Measures Act which states a particular measure has to make reasonable or significant savings to justify its inclusion in the budget.

The act was passed in 2009 to make legal the pension levy on public servants.

Many retired politicians on massive pensions are also getting other forms of payment from the public purse.

Alan Dukes, who is believed to be paid €150,000 for his role as chairman of state-owned Anglo Irish Bank (now the Irish Bank Resolution Corporation) has a ministerial pension of €94,467.

Fianna Fáil MEP Pat The Cope Gallagher has a ministerial pension of €70,562 on top of his European Parliament salary of €92,000.

Former tánaiste Dick Spring has a ministerial pension of €121,108. This is on top of his basic salary of €27,375 and €3,000 for every committee meeting he attends as public interest director at the partly state- owned AIB.

Meanwhile, the Government is being urged to publish a report on the possible impact to businesses and job losses from proposed changes to sick leave payments.

Minister for Jobs, Enterprise and Innovation Richard Bruton has received a report from the employment advisory board, Forfás, on the impact of making employers pay up for the first month of sick leave which had previously been provided by the State.

Fianna Fáil’s spokesman on jobs, Willie O’Dea, said the Government must make available such important advice so it can be properly debated: “If there is going to be a major shift in policy which increases the burden on businesses we must be aware of what advice the Government is getting before taking its decisions.”

A spokesperson for Mr Bruton said he has received the report and “will be considering it as part of his contribution to budgetary discussions”.