O'Donoghue severance payment could be €7,813 a month
PAY PACKAGE:JOHN O'DONOGHUE will be entitled a severance payment of close to €7,800 a month for the next six months on top of his TD's salary after he resigns from his post as Ceann Comhairle next week.
On leaving office, severance is payable for a period equal to the period during which the person has been continually in office, subject to a limit of two years. The first six months is paid at 75 per cent of officeholder salary (of €125,005, in this case), the next 12 months is at 50 per cent and the final six months is at 25 per cent of salary.
This translates into €7,813 amonth for the first six months, €5,209 for the next 12 months and 2,618 for the final six months.
The rate of pension is 20 per cent for the first two years plus 5 per cent for each year of additional service, subject to a maximum of 60 per cent. Part-years are pensionable on a pro-rata basis. There is no lump sum payment. Pension is payable at age 50 or later on leaving office but is abated by 62.5 per cent in the case of an Oireachtas member.
Department of Finance guidelines state that the office of the Ceann Comhairle is designated as a ministerial office for pension purposes.
However, the department said severance and pension may not be paid simultaneously.