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Dublin: 11 °C Sunday 19 May, 2013

Higher pension levy hits Ahern and Cowen – by €80 a week

High earners will still keep the vast majority of their huge pensions, as Brendan Howlin admits there is little the government can do.

The pensions of former Taoisigh Bertie Ahern and Brian Cowen are being cut by around €80 a week under the government's new regime.
The pensions of former Taoisigh Bertie Ahern and Brian Cowen are being cut by around €80 a week under the government's new regime.
Image: Mark Stedman/Photocall Ireland

THE MASSIVE PENSIONS of former taoisigh Bertie Ahern and Brian Cowen will be cut by the government’s new plans for cutting public pensions – but only by around €80 a week.

Plans announced in the Dail last night by public expenditure minister Brendan Howlin outlined how the government would put a 20 per cent levy – essentially a tax – on any pensions above €100,000 per year.

The new levy will mean that people on pensions worth €150,000 a year will lose around 12.5 per cent of their overall entitlement – but with the majority of those levies already being in place, the new rules will mean large earners may barely notice the cuts to their pensions.

Former taoiseach Bertie Ahern – who €152,332 annual pension is the highest of any former minister – will see his pension levied by a further €4186.53, the equivalent of €80.51 per week.

Brian Cowen, whose annual pension is just under Ahern’s at €151,061 a year, will lose €78.56 a week, or €4084.94 over the course of a year.

The levy will also apply to former president Mary McAleese, who is entitled to half of her existing salary – of some €325,000 a year – as an annual pension.

Her yearly income, of €162,754, will be reduced by a further €5,020 per year on top of the levies that she is already required to pay.

Speaking on RTÉ’s Morning Ireland, Howlin admitted that there was little that the government could do to reduce the pensions by more, because public servants have legally earned the pensions to which they are now entitled.

“We’re trying to undo decades of profligate pay and pension provision, laid down in law, in contract deals and so on. It’s been an extremely difficult process,” the minister said.

“There is no civil servant earning more than €200,000 now… We’ve a way to go, but we have to do it within the confines of the legal instruments and the constitution.”

In full: What former ministers get after the government’s new levy >

Read: Government announces cut to public sector pensions over €100k >

In full: what former ministers get after the government’s new levy

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Comments (45 Comments)

  • Jesus how will he cope now!!! 80 quid!! FFS…

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  • David 30/11/11 #

    How can they even be called pensions when they’re not pension age?

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    • The state old age pension is just one kind of pension. A pension is a regular payment made during a person’s retirement from fund to which that person or their employer has contributed. Doesn’t matter what age they are.

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    • David 30/11/11 #

      Well excuse me for living in the real world but I’ve been paying a fortune into my pension for the past 20 years and it doesn’t pay out till I’m retirement age. Surely all these “pensions” are taxed as income up to retirement age?

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    • I have no idea. I just know that “pension” doesn’t necessarily mean “old age pension.” I wasn’t making some kind of political statement, dude. Just thought you were misunderstanding a word.

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    • David my understanding is that these pensions are taxed as income, this levy would be additional to that ie. 150k pension would be worth somewhere between 70-80k. Also not making excuses for enormous pensions in a time of austerity… just clarifying.

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  • Marvellous ? That €80 p/w is half my income . Water off a ducks back to anybody earning €3000 grand a week ?

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  • For fuckkkkkkkk sake what aload of bolocks it great how they can’t touch them because of the law and when it come to you and me they do what they like well that’s it I will head to mount joy over the next bill they put on me we should all do the same

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  • Should be 8 grand a week, not 80.

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  • If we don’t stop this madness now we are all in for a very rough ride while these boys that are the main cause of it are still rolling in it, with our tax money!!

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    • Exactly Toirealach; I would add that our problems have not been caused by foreigners or the EU that we whine on about so much, but by the utter profligacy and selfishness of our fellow Irish men. We will not recover until we get honestly to grips with this fact.

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    • I grew up believing “an honest days work for an honest days pay”. These guys in charge of Ireland and Europe are far from honest. We need to remember what it is to be Irish, we lost our way for a while but it’s still in us and we need to teach the foreign people in this country as well.

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    • What does it mean to you to be Irish, just out of interest?

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    • It’s hard to say really. Ireland was a very safe place to live compared to now. My parents only started locking their doors 15 years a go and crime is escalating now. People were hard working, honest, they looks after each other, you thought you could trust your bank manager. But then everyone went a bit crazy during the Celtic tiger.

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  • My understanding is that the Government, if they have the desire, can introduce any legislation they wish, as long as it doesnt overwrite any European law … so in essence, they have the power to 1) Reduce the pension and 2) increase the eligibility criteria to anything they want.

    But you may have guessed it already, there is Zero will in FF/FG/Labour to address this issue, as this will impact their future pension rights also.
    And before we go off on this one … Michael D Higgins is also gettig multiple pensions, even though he is receiving a salary as President. FF/FG/Labour, all the same.

    We need to petition our TD’s to address this. These thieves should not be getting anything more than the average industria wage as a pension anyway. This will hep them all understand their penance where it hurts … in their pockets.
    Past and future ministers and TD’s must understand that the decisions they made/are making/will make has consequences on the average person in our society. How better to understand this, then to live it. It will help these thieves geta taste of the real world.

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  • Has Howlin introduced legislation so no future retiring minister/senior public servant will get these obscene payments? ie will the current ministers get the loot as well?

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  • Referendum please Mr. Howlin that would sort out the issues with legal instruments and the constitution.

    €80 a week what a joke and to think this ‘announcement’ was flagged during the day as a big step forward on super pensions.

    Self serving publicity that has back fired on him.

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    • Bazza 30/11/11 #

      Kerry,
      I agree its frustrating.

      However a referendum is only on constitutional matters and pay (except for judges) is not governed by the constitution.

      You have the FF weasels to thank for years of pocket-lining and all contained in their employment contracts (defended by the public service unions).
      To confront this head on is to invite a breach of contract action which the Government wpuld lose and would cost even more money.

      Again, remember who got us to this place…. The cabal of clowns….McCreevy, Ahern, Cowen, et al.

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  • Screw losing 80 Euros .These guy’s should be losing their liberty. Arrest the f*****s now and give the nation some justice and a happier Christmas.

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  • if we were all down 80 euro a week but still getting over 100 thousand a year we’d have no worries. anyone in a government job earning over 100 thousand a year should all have voluntary cuts and if not they should join the queues in the social office and get linched.

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  • No problem for Bertie he would win 80 euro on the horses before breakfast,its poor Brian i feel sorry for he will have to cut back on his karaoke nights out, Clara won’t be the same on a Tuesday night ever again!

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  • As I’ve said before, there’s no love like the love a politician has for himself.

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  • And still the gravy train keeps on moving-I’m alright jack,pull that ladder up,dear chap!!!!

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  • If normal folk like you and I were to take a hit of 80 euro a week (and god knows, after next week how we’ll manage), we’d be over the edge. It’s a lot of money to us. 80 euro to these assholes isn’t going to make a blind bit of difference. What a pathetic attempt by the government to try hoodwink us into thinking they’re making fair and just cuts and doing something constructive. For shame.

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  • What a joke! These leeches deserve nothing from the Irish people especially the ones who bankrupted the country, Ahern and Cowen should be doing time in prison for their criminal negligence as taoiseach and minister for finance. None of these clowns should be getting a pension until they are 65 and it should be based on what they paid in? Which is nothing of course. They are total parasites on the people and at a time when the country cannot afford to pay for freeloaders. Disgusting.

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  • And now the reports in to the church will come out and try and distract us from this government treachery against its people

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  • I’m starting to suspect that some Irish politicians are interested only in themselves :)

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  • As long as politictions are payed extorionate wages and pensions, it will encourage corrupt people to to stand for government,You will never see an honest polition rise to the top…Nurses, Carers and teachers do their job on low pay and have prob the hardest job, but they do it because they are passioate about it..what we need is all ministers wages brought down to this level, then you will see the honest hard working politicion come forward, and work for the benifit of the people…know it will never happen in my lifetime, until that day , polittions will be corrupt and corrupt…..

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  • Ah poor bertie and his friends will earn €90,920…thats so bad……get a grip irish government…

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  • God forbid Irish people would take a stand and force these leaches to reduce their pensions to an acceptable amount – we’d have one less thing to complain about!

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  • Danny D 30/11/11 #

    Am I missing something? 20% on €52k is €10,400. That’s €200 a week. Where did the €80 come from?

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  • We haven’t lost our soverignity to Europe – we have lost it to the Croke Park Deal

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  • Here’s one way to make a “silent ” protest.
    http://www.facebook.com/events/246400772088436/

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  • Sadly asking ‘decorator’ Howlin and the current junta to do anything about the obscene level of these pensions is like asking turkey’s to vote for christmas. The looting of the public purse and the disgusting leeching will continue because the same parasites who are now in govt, are the very same parasites who in years to come will be joining the rest of the leeching class as soon as they have done their stint on the gravy train, in order to cement their ‘entitlements’ and bleed the country dry along with Ahern, Cowen Harney, Coughlan and all the other assorted crooks, gangsters, fraudsters and freeloaders! The country cannot afford to paying these unproductive spongers this kind of money for doing nothing and they should not be entitled to penny before they are 65 and that should means tested given all the other scams they will have taken advantage of during their time at the trough. Let them wait for their ‘state’ pensions the same as everyone else. Just remember it’s YOU and your children (assuming they have any jobs) who will be picking up the tab for these freeloading parasites, the very same ones who ensured that up to 75,000 young Irish people will be emigrating next year to find work and a future abroad because the same pensions abusers all but destroyed any chance of these people having a future at home, so much for no rewards for failure!

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  • Ok, my understanding is that of the small print from the bottom of the screen of pensions advertisements on tv.. “WARNING: The value of your pensions investment can go up OR DOWN, past performance is not necessarily an indication of future returns” (emphasis mine)

    Now, this is for private pensions investments, and goodness knows, most peoples private pensions have taken a hit.. So if that disclaimer is there to remind consumers that there is no guarantee that their pensions will pay out what they put in – why should a state pension be any different?

    It’s just posturing and hiding behind legalese to try and excuse something that in totally unjust.

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  • Apologies, that list is for the 30th dail. Anyone have an up to date list?

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