'Final insult for student nurses' as Cabinet reverses pension cuts for retired taoisigh

Labour leader Alan Kelly described the decision as the “final insult” to student nurses. File picture

The Cabinet has reversed pension cuts to retired taoisigh, ministers, and top civil servants who were in office during the financial crash a decade ago, just one week after refusing to pay student nurses.

The €12m-a-year decision will see up to 4,000 of the highest-paid retired public servants, including former taoisigh Bertie Ahern and Brian Cowen, relieved of the pension levy introduced in 2009.

The Cabinet also cleared the way for pay increases for opposition party whips and the judiciary.

For some opposition whips, the stipend paid on top of their €97,000-a-year salary has been doubled.

Labour leader Alan Kelly described the decision as the “final insult” to student nurses and a number of Fianna Fáil TDs and senators voiced concern at the situation at a meeting of their parliamentary party last night.

At its weekly meeting, the Government ended the operation of the Public Service Pension Reduction (PSPR), introduced under the Financial Emergency Measures in the Public Interest Acts. This means that the pension reductions will cease to apply to any public service pensions from July 1, 2021.

“As required by legislation, we are now at the point where the remaining 3% of public service pensioners must be removed from the impact of PSPR in the period ahead,” said Public Expenditure Minister Michael McGrath.

Public Expenditure Minister Michael McGrath: 'As required by legislation, we are now at the point where the remaining 3% of public service pensioners must be removed from the impact of PSPR in the period ahead.' File picture: Brian Lawless

Section 27 of the 2017 Act provided for the longest deferral, which was legally permissible, to the restoration of the pension reductions. 

It requires an order to be made by December 31, 2020, providing a date for the restoration of the pension reductions.

“I am advised that this requires the reduction to be restored within a reasonable time from the making of the order which, having regard to the provisions of the act, could not be later than the 1st of July, 2021,” said Mr McGrath.

At its weekly meeting, ministers also approved plans to give legal effect to a 2% pay increase to the judiciary in line with other rises in the public sector.

Party whips

Ministers also gave their consent to an increased allowance for the party whips, who act as convenors for their parties in the Dáil.

It is believed an increase from €10,000 to €19,000 for the Sinn Féin whip Pádraig Mac Lochlainn has been signed off and the assistant Sinn Féin whip will receive an increase from €5,000 to €9,500.

Under the new payment scheme, the Fine Gael and Fianna Fáil whips will receive €10,000.

For the smaller parties, the Green Party, Labour, Solidarity/People Before Profit, and Social Democrat whips will receive a €6,000 allowance, ministers have said.

The three “super junior” ministers who sit at the Cabinet table will from today share €32,000 worth of allowances between them.

This is opposed to getting a €16,000 allowance each.

"It’s the final insult for student nurses and midwives that the Cabinet saw fit to sign off on pay increases for thousands of workers but not address those students at the frontline who are doing critical unpaid work in the fight against Covid-19 while keeping their studies going,” said Mr Kelly.

At a meeting of the Fianna Fáil parliamentary party last night, TDs and senators voiced their anger at the negative public reaction to opposing the paying of student nurses and then the Cabinet awarding pay hikes to judges and politicians.

Cork East TD James O’Connor said the damage to Fianna Fáil will be lasting from the student nurses issue. 

“We’ll be slaughtered in a general election," he said. "Our social media presence is appalling."

Senator Malcolm Byrne told colleagues that the vista of salary increases for judges set against the refusal to pay student nurses “doesn’t look good”, adding the party is on the “back foot”.

Cork North Central TD Padraig O’Sullivan agreed that damage has been done while senator Eugene Murphy said mistakes had been made on refusing to pay nurses.