Liam Cosgrave: I’ll be handing back my ¤2k pension bonus
LIAM Cosgrave is the latest former taoiseach to confirm that he will forego his pension increase.
The announcement comes as Enda Kenny called on all former taoisigh and ministers not to accept the increases due to them as part of the restoration of some public service pay cuts.
Former Fine Gael taoiseach, Liam Cosgrave, 95, said he will not take the €2,000, which was due to be added to his annual pension payment.
Last month, the Department of Public Expenditure and Reform outlined plans to partially restore cuts to public service pensions on a phased basis over three years from January next year.
Taoiseach Enda Kenny previously said: ‘I would say to the small number i nvolved here: they’re former politicians; we’re in a fragile position economically.
‘I would say to them, “Refuse the increase that is coming back.”’
John Bruton, who served as Fine Gael taoiseach between 1994 and 1997, said he would comply with Mr Kenny’s request ‘for the reasons he gave about the economic situation’.
Mr Bruton receives a combined ministerial and taoiseach’s pension of €72,908, but his total package is actually more than €126,000 because of his TD’s pension.
Former taoiseach Brian Cowen has said l egislation should be changed to ensure former senior politicians do not get pension increases.
He added he would have ‘no problem’ if existing legislation was used to prevent former politicians getting the pension increases.
Former education minister Mary Hanafin of Fianna Fáil has said the promised boost to the pensions of ex-ministers should not be paid while austerity continues.
‘The pensions are very generous. They should be the very last to get an i ncrease,’ Ms Hanafin said. Mr Kenny has said people should exclude themselves voluntarily from the pension increase. He said he did not want to put that legislation at risk in the courts as it could cost the State €2.2billion.
It is not yet know if former Fianna Fáil taoiseach Bertie Ahern will also forego the pension rise.
If he accepts the increase Mr Ahern’s pension will reach €136,000 as a result of the Lansdowne Road Agreement agreed between Mr Howlin and public sector unions.
The pension money will be boosted over the next three years.
Mr Howlin said the Government had reduced public sector pay by 3 per cent at the bottom of the scale and by 10 per cent at the top.
But it would have to be restored, as it was done under emergency legislation, and the emergency was coming to an end.
Fianna Fáil finance spokesman Michael McGrath said: ‘Most people would agree it is unfair to give an increase to people who are on very high pensions, whether they are politicians or public servants. We are still borrowing money.’
He said there were legislative instruments that could have been used to deny the pensions top-up to former politicians if the Government had had the will.