Generous entitlements do more than soften the blow ...
POLITICIANS are entitled to a myriad of payments which depend on their position upon retirement and their length of service.
Their termination lump sum and payment is calculated on their current salary, which also includes any extra allowances for whips and committee chairmen.
However, their pension is calculated on their salary prior to the pay cut announced last year. Previous positions held, such as that of a committee chairman, also boost their pension payments. Ministerial pensions are paid in addition to the TDs pension. All pension entitlements are payable from the age of 55 and increase in line with salary increases.
The following are the various entitlements TDs can expect on losing their seat or retiring.
- Termination lump sum: Calculated as a portion of their current TDs salary, about two months' worth. Generally non-taxable.
- Termination payment: A taxable sum paid each month for the first year of retirement.
- Pension: Calculated as 1/40 of their salary prior to the pay cut, multiplied by their years for service, up to a maximum of 20 years.
- Pension lump sum: Calculated at three times their annual pension up to a maximum of 1.5 times the annual salary. Non-taxable.
- Ministerial pension: Applicable to all ministers, ministers of State, Ceann Comhairles and Cathaoirleachs, both sitting and those who previously held positions. It is a percentage of their salary, based on the number of years service.
- Ministerial severance: Payable to sitting ministers for a maximum of two years. It is calculated as a percentage of salary and length of service. It cannot be claimed at the same time as the ministerial pension. As it is generally worth more to recipients, those eligible usually opt to begin their pension straightaway.