Minister for Public Expenditure and Reform Brendan Howlin has told the Dáil he is introducing further cuts in public service pensions "in the broad national interest".
He said he would amend the Financial Emergency in the Public Interest Act 2010, providing for the reduction in judicial salaries, to introduce the cuts.
The amendment would introduce a higher reduction rate of 20 per cent on public service pensions above €100,000, he said. Pensions in excess of €60,000 were currently being adjusted by 12 per cent, the Minister added.
The reduction, he said, would potentially affect former office-holders such as the president; taoisigh; senior members of the judiciary, such as chief justices or members of the High Court, Supreme Court; heads of universities; civil service secretaries general; chief executives of non-commercial State bodies; some hospital consultant doctors; Garda commissioners; and chiefs of staff of the Defence Forces.
Mr Howlin said his department’s initial estimate of possible savings was in the region of €400,000 in a full year.
Somebody on a pension of €125,000 would see a cumulative reduction in pension of €13,760 or 11 per cent. Those drawing a pension of €150,000 would see a corresponding fall of €18,760 or 12.5 per cent.
Earlier, Sinn Féin president Gerry Adams said that 30 former politicians were earning pensions that were significantly in excess of €100,000.
Taoiseach Enda Kenny said the question of “serious amounts of money” being paid in pensions to retired persons was a matter of some importance to the Government.
Mary Lou McDonald, Sinn Féin spokeswoman on public expenditure and reform, attacked Mr Howlin's amendment as a scandal.
She said the Government has still failed to tackle the issue because retirees receiving massive pensions will still receive more than €100,000 after the levy.
“Fine Gael and Labour have yet again failed to tackle the thorny issue of bumper annual pensions paid out to former taoisigh, Government ministers, judges and secretaries general,” said Ms McDonald.
“The additional pension levy measure announced by Minister Howlin amounts to a mere additional 8 per cent reduction on pension income over €100,000 as these pensions are already subject to a 12 per cent reduction."
However, Labour TD John Lyons praised the new tax, describing it as progressive and equitable.
“Given the fiscal crisis inherited by this Government and the budgetary challenges it presents, it is an imperative for [the] public to see that those who are able to bear most of the burden do so,” he said.
“Though the numbers affected are relatively small, it is nonetheless right and proper to reduce these pensions, to reflect the challenges we face as a country.”
Additional reporting PA