160 retired bankers on pensions over €100k

More than 160 retired bankers are receiving pensions above €100,000 from bailed-out institutions.

160 retired bankers on pensions over €100k

The latest figures will increase pressure on the Finance Minister Michael Noonan to use Wednesday’s budget to tackle the remuneration rates at the state-covered lenders, which, he admitted, were “ridiculous”.

Figures from his department show that 88 retired bankers are getting pensions of over €100,000 from AIB — which plugged a hole in its pension scheme in August by handing €1.1 billion of loan assets to its pension pot. A total of 52 former employees from Bank of Ireland are receiving pensions of over €100,000, as are 16 retired staff from the former Anglo and 11 from Permanent TSB.

“With only a short few days left to what is going to be another hairshirt budget, these figures put an onus on the government to rein in bankers’ pensions,” said Fianna Fáil finance spokesman Michael McGrath who obtained the figures through a parliamentary question. “There isn’t going to be a massive revenue yield for the exchequer, but it would demonstrate solidarity,” he said.

The figures follow separate information obtained by the Cork South Central TD showing almost 3,000 bankers at the bailed-out institutions earn total pay packages of more than €100,000 a year.

Among those, 27 top bankers earn more than €500,000, including 20 in BoI and seven in the former Anglo, now the IBRC.

The latest figures show a total of 9,033 retired employees, or their spouses, are receiving pensions from the bailed-out institutions including: 3,380 from AIB; 5,300 from Bank of Ireland; 57 from Anglo and 296 from Permanent TSB.

“Some of the people who benefit from these enormous pensions in the banks would have directly contributed to the banking model that cost citizens €64bn,” Mr McGrath said.

And he is seeking further information from Mr Noonan on the numbers receiving pensions of over €200,000 and €300,000.

It was recently reported that an annual pension of €500,000 was being paid to former AIB chief executive, Eugene Sheehy, who was in charge at the time of the 2008 bank guarantee. His successor, Colm Doherty, who has also left the bank, was reported to be in line for a €300,000 pension when he turns 65.

Fianna Fáil has published legislation that it says, if implemented, would allow the Government to reduce pensions paid to retired bankers by up to 40%.

Under the legislation, pensions of €100,000 to €150,000 would be reduced by 20%. Pensions of €150,000 to €200,000 would be cut by 30% and amounts in excess of that would fall by 40%.

On Thursday, The Irish Examiner revealed 84 retired civil servants were earning pensions of over €100,000, as were 28 retired minister and judges. A further 171 retired civil servants are on pensions of between €70,000 and €80,000.

Pension pots: €100,000+

* Retired bankers: 160.

* Retired civil servants: 84.

* Retired ministers and judges: 28.

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