Legal issues hindering pension reform: Hayes
His comments came as Independent TDs called for a 50% cut to pensions for politicians, office holders and state-appointed officials. Expenses should also be reduced, say the group.
The Technical Group says the public will not accept demands for austerity if senior politicians, public servants and judges are drawing down huge sums.
The Oireachtas recently said that TDs, senators and ministers this year would earn €11.7 million in expenses on top of their salaries, which amount to €20m. TDs this week are pushing a motion through the Dáil seeking cuts in pensions and expenses for ministers, taoisigh, TDs, senators, senior public servants, state regulators, judges and the CEOs of semi-state bodies and covered banks.
Some TDs say emergency finance legislation could cut pensions by 50% for office-holders.
Others say office-holders should only get statutory redundancy pay. Dublin North TD Finian McGrath said: “How can people be earning so much with cuts to services for home help and those with disabilities. We want at least a 50% cut in pensions and allowances.”
The motion calls for an end to the “system of paying grossly overgenerous pensions”.
Tipperary South TD Mattie McGrath said it was outrageous that politicians retire with €100,000 pensions.
Mr Hayes told the Dáil that at the end of September there were 84 former civil servants and 28 former office holders currently being paid pensions of over €100,000.
But he said increasing cuts for this group would “save limited amounts of money and would potentially affect only a small number of public service pensioners”.
There was also the potential of a legal challenge “as a pension is generally taken to be deferred income and therefore covered by the constitutional protections that apply to property,” he said.
Fianna Fáil also has tabled its own amendments which calls for a reverse of the pension levy as well as the introduction of emergency legislation to reduce former bankers’ pensions.
