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McDonald introduces legislation to end added years and special pension payments to City and County Managers

14 March, 2012 - by Mary Lou McDonald TD


Sinn Féin Public Expenditure and Reform Spokesperson Mary Lou McDonald TD today introduced legislation to end the awarding of added years and special severance gratuity payments to City and County Managers of local authorities on retirement.

Deputy McDonald said:

“In November of last year Public Expenditure and Reform Minister Brendan Howlin said he intended to revoke the awarding of added years and special severance gratuity payments worth half a year’s pay to new entrant City and County Managers of local authorities. To date neither he nor the Minister for the Environment, Community and Local Government have delivered on this commitment.

“Minister Howlin has said that a legislative change is required to deliver on the government’s commitment to withdraw these excessive pension perks, and that Minister Hogan is examining the matter.

“As the government has failed to address this anomaly in public service pension provision I have today introduced legislation that would end the inequitable awarding of added years and special severance gratuity payments to City and County Managers if enacted.

“Last month Limerick’s City Manager retired at just 58 years of age on a full annual pension of €73,422, a lump sum of 202,541 plus a special severance gratuity payment of €91,222. Compare this against 78% of civil service retirees who are in receipt of an annual pension below €30,000.

“Over the last 12 years €1.3 million has been paid out to former City and County Managers in special severance gratuity payments and over 40% have received added years enabling them to retire early on a full pension.

“This piece of legislation introduced today will enable Minister Howlin to deliver on his commitment to revoke added years and special severance gratuity payments to City and County Managers of local authorities.” ENDS

Note to Editor:

Local Government (Superannuation) (Consolidation) Scheme 1998 (Amendment) Bill 2012 introduced today by Sinn Féin’s Public Expenditure and Reform Spokesperson Mary Lou McDonald TD repeals Article 78 of the Local Government (Superannuation) (Consolidation) Scheme 1998 in order to end the provision of added years and special severance gratuity payments for City and County Managers of local authorities.

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