Departing IBRC staff to get higher redundancy payments

Departing IBRC workers are to get additional redundancy payments from a €5.5 million fund set aside by the special liquidators.

The joint special liquidators, Kieran Wallace and Eamonn Richardson of KPMG, said a sum of money will be set aside to facilitate the provision of termination payments to certain IBRC employees who were employed on 7 February 2013, the date on which IBRC was placed into liquidation.

However, any employee who earned in excess of €120,000 annually would not be entitled to the additional payments.

Workers with less than 2 years’ service would receive a termination payment of €2,000. Workers with 2 to 10 years’ service would receive €15,000 while workers with over 10 years’ service would receive €18,000 as a termination payment.

These amounts would be paid to all staff made compulsorily redundant in addition to their statutory redundancy entitlement.

When the government put the IBRC into liquidation, staff members were only entitled to statutory redundancy of two weeks’ pay per year of service capped at €600 per week.

The special liquidators have also told the Government they expect the proceeds from the sale of loan portfolios at the defunct institution to exceed the €12.9 billion in IBRC-related debt issued by the State at the time of its winding up last year.

As a result there will be no additional taxpayer liability relating to the former Anglo Irish Bank and Irish Nationwide above the €34.7 billion that was given to the banks in 2009/10 via share capital and the Anglo promissory note.

To date, the special liquidators have announced that they have sold IBRC loans with a face value of €19.8 billion from a total book of €21.7 billion.