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Dublin: 9 °C Thursday 23 May, 2013

Shortall won’t get ministerial pension – but can receive €33,100 severance

Ministers aren’t allowed to receive both – but Róisín Shortall isn’t entitled to one, so she is entitled to the other.

Image: Mark Stedman/Photocall Ireland

Updated, 15:17

FORMER JUNIOR MINISTER Róisín Shortall is entitled to €33,100 in severance pay over the next 19 months after quitting her position as Minister of State earlier this week.

Shortall is not entitled to a ministerial pension, as she held her ministerial position for less than two years – but former office holders are not permitted to receive ministerial pensions and severance pay at the same time.

This means that the Dublin North-West TD is entitled to severance pay in respect of her year-and-a-half as a junior minister under James Reilly, a fraught tenure which ended on Wednesday.

Departing office-holders are entitled to severance pay for a period equal to the time they spent on office, subject to a cap of two years. This means Shortall, who was made a junior minister on March 10 last year, is entitled to about 19 months’ severance pay.

Legislation enacted in 2001 can see Shortall paid 75 per cent of her monthly ministerial salary for the first six months after her departure, 50 per cent each month for the following year, and 25 per cent for the fortnight-or-so thereafter.

19 months’ work, 19 months’ severance

With the salary for a Minister of State currently standing at €37,370, this means Shortall will receive €2,336 in severance each month until next March; €1,557 per month for the twelve months after that; and €409 in April 2013 when her severance ends.

All in all, Shortall is entitled to €33,108 over the next 19 months – as well as her Dáil salary of €92,672, which she will continue to receive for the duration for her stay in the Dáil. Any such severance pay is subject to income tax.

Her replacement as junior minister, Alex White, will meanwhile see his own pay increase by €27,870 when he is formally appointed following next Tuesday’s cabinet meeting.

White’s salary will increase by €37,370 in line with his new role – but serving ministers are expected to step down from any roles as chair of an Oireachtas committee.

The Dublin South deputy is the chairman of the Committee on Finance, Public Expenditure and Reform – a role for which he receives an annual allowance of €9,500. He will lose that allowance when he formally steps down as committee chairman in the coming weeks.

[Update, November 29: Shortall has contacted TheJournal.ie to outline that though she is entitled to the severance pay, she has opted against claiming it. We are happy to update and clarify this.]

Video: James Reilly explains his decision on primary care centres

More: Alex White to replace Shortall as junior health minister

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Comments (64 Comments)

  • Ok so if I just left my Job would I get anything ? What a joke , it was her choice to leave .

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  • This is a disgrace. They are withdrawing funds for home helps, schools losing counsellors, essential services forth most vulnerable reduced but hey as long as 33k is spent in severance despite been still employed as a TD. In these times when this gov ate preaching savings. Cuts, and introducing more taxes how can they justify paying out this money. The same goes for TD’s receiving pensions of extraordinary amounts while still in office. No payment should be made for leaving a post or pension until you reach 65!!

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  • This mullarkey is from a different era, wasnt even ethical then, and is now taking the proverbial. Could Gov officials even start living on the same planet as the rest of us folk. Enough …

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  • There is no justification for such payments. The country can’t afford it. How can we take a government seriously when they don’t root out these inequities.

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    • James Kearney

      You suggest that the issue that drew the line in the sand was the expansion of the list from twenty to thirty five GP Practices. How could that possibly be the case since the Minister wrote to Shorthall on that list at the end of June and it was discussed at Cabinet ad interim plus the lady voted confidence in Reilly without a murmur of dissent on this issue.
      It looks much more like this Junior Minister wasn’t up to the task but personally believed her time had come and she deserved a Senior Ministry but couldn’t cope with the reality of a non job. She apparently lashed out at Gilmore as well as Reilly and proved conclusively that she doesn’t have the right stuff.
      We now know that the Taoiseach and Leader of the Labour Party had previously tried to win her over and she probably thought her hissy fit would win her a Cabinet position.
      What a foolish and overrated politician.

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    • Paddy, that was the last issue prior to the resignation. What I am suggesting is that the suggestion she resigned because of lack of money raining down should at least have some facts to support it.

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  • One rule for them……
    For the average worker who is made redundant, they have to wait nearly a year to receive their statuary payment.

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    • She wasn’t made redundant, she quit

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    • Don, I know she quit. The point I’m making is she (rightly or wrongly) chose to leave her position & her severance payoff will be paid in a specified timeframe. For the normal joe soap if the employer is not in a financial position to pay they have to apply to the governments social protection scheme for their statuary payment which can take up to a year to process. I think it’s unacceptable that funds are too readily available to members of the Government. It’s hard hearing about services being forced to shut down due to lack of funding or seeing families struggling but it’s something that we’re expected to accept for “the greater good”. Times are hard but not for everybody…..

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  • Typical… This makes me sick. Why are these conditions still in place. If budgets are being cut all over the shop this sort of crap should be first to go.

    It’s all about looking after themselves, lining their own pockets and developing their constituencies

    Reply
  • Reg 29/09/12 #

    If she resigned then she shoul be back to her TDs salary, simple as that.

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  • at least she didnt hold out for pension entitlements like the rest of them, how many of them will develop principles once they have served two years and are entitled to big fat pensions.

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    • Exactly!!!! Everyone else has missed this point. In taking this stand against James Reilly she has forfeited her right to the substantial pension she would have received and might I add a substantially larger lump sum. I recall one other junior (funnily enough Heath again) minister putting his money where his mouth is and taking a stand like this. Now Rosin needs to speak out and not let her resignation be in vain. Politicians usually hang on for dear life., even when there have been calls for resignation on alleged financial improprieties, of which might I remind everyone, there has been many.

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    • It takes a few minutes for the real picture to emerge, harpulee and Lorraine are right on the money. That’s the nub of this. 33k now versus hundreds of thousands into the future. That a sacrifice for her Principles but many, including her government colleagues have no such guide to their behaviour, they pretend to in opposition, but not when near the treasure.

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  • Why would she get a severance payment when A she resigned and B she still has a job?

    This country is corrupt beyond belief

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  • Outside of government, who else gets severance pay at all, never mind that generous, when they quit a job?

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  • its a joke , she doesn’t need or deserve this pay .. she still has over :?92k a year from the dail ..if a normal Joe leaves his job how long would it take him to get welfare ?? guaranteed she won’t need to sign endless forms and argue her corner . the country can’t afford it

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  • Why do we all have to wait till retirement age to get our pension and they don’t?

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  • Is here any other job in the world where you get severence pay for walking away from a job after a few months?
    The salaries and perks these people give themselves are immoral. Mary Harney’s long career came to an end in the last election. She has little to be proud of, she achieved virtuallly nothing yet she continues to draw a massive pension. Some ex ministers have given back part of theirs, but not her. She says she earned it. Earned it how? By taking a disfunctional health service and making it worse? She is not the only one of course: most of those politicians who sleep walked us into the biggest crises in the history of the state are claiming their full pensions.
    Have they no morals or sense of shame? It’s time (past time!) to take to the streets.

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    • All it needs is a few stone throwers and most of the country would close their curtains and complain of the disruption. It beggars belief how we ever got rid of the British. We complain about a bad meal but not when we are paying, no, two days later to someone else who has no control over the situation. Our attitude of ” isn’t it awful, ah sure ” would have the 1916 leaders wondering why they bothered

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    • Very well said.

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  • Maybe she could hand it straight over to the St Vincent de Paul as Trevor Sargent did when he quit

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  • A truly principled person would refuse to take any such money from our overburdened State. There again, a truly principled person wouldn’t have any hand, act or part in a coalition with either of the right wing civil war parties that have spent the best part of a century screwing us into the ground

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  • OMG how will she cope !

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  • Yet another example of waste and greed in the public sector. If the Government truly wants to cut costs, surely they should be looking at their own perks and benefits first?

    Reply
  • And we wonder why we have a €25 Billion shortfall this year!

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  • Ah here we go, the typical ”what a joke, this can’t go on etc.” type comments littered all over this page.

    I’m in favour of a revolution as much as the next bunch of ye, but complaining on articles online won’t do it. I suppose we’re too comfortable to want any real change. That or the price of drink has to significantly go up before we can expect any type of revolution.

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    • Trouble is, Patrick, we can communicate our joy/resentment/disgust from the ould easy chair, but it takes a Davitt figure to translate the feeling on the ground into visible political action. We don’t have heroes like that any more.

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  • This money could be used to hire two extra SNA part time positions for some school in the country. She resigned not out of principle but because she hadn’t the intellectual ability to do the job.

    Some months ago, Frontline had a special programme dedicated to her minimum pricing on alcohol and when she was asked what should the minimum pricing be, she replied that she didn’t know.

    Let’s put this in perspective: she might as well have said she is going to put an Irishman on the moon before the end of 2012!

    If you ask a six year old what he would like for the world, he might say an end to world hunger. Great policy but means noting if you don’t have the intellectual ability to implement such an idea.

    If she had any principles, she would publicly not accept the severence package.

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  • Writers keep saying “if I left my job” I would not get severance pay but this is not the situation here. This is more like your manager deciding he did not want to do his job anymore, dropping down to a level below him and was then given a lump sum

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  • I wonder will her principles allow her to take the money…….

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  • The payments and packages are what they are but Roisin cannot make a difference now. You can lead from behind also and making enough noise beside Reilly would have gained a lot more than spitting out the dummy. We all have difficult jobs sometimes but we have no choice but to stick at it.
    I wonder why the good ones don’t make it in there????

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  • I take it she will be in receipt of a ‘Leaders Allowance’ now she’s officially an Independent in the Dáil! She will probably be better off now!!

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  • Lucky Roisin. That’s three years income for me. I’m SO pleased and delighted for her seeing as she REALLY earned it.

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  • A big change in the type of comments now. During the week most were is support of a politician with “principles”. In truth our political analytical skills are poor but our propensity for begrudgery always bring us back down to earth.

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    • The comments relate to the inequity of the financial provisions – nothing to do with her stance as a politician.

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    • She is rightly lauded for her principles but it is the financial system here that is being criticised.

      The sooner these people are brought in line with us mere mortals who have to pay into their own pension funds (and watch them shrink to nothing by the (in)actions of these people) and worry where their next job is coming from, the better for the entire country.

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    • Or maybe different people are commenting?

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    • Principles. Why on earth do we so admire politicians who have achieved nothing and have manifestly demonstrated to be lacking in the characteristics necessary to achieve something while in office? A politician achieves nothing, retires on a fat cat pension and will achieve nothing from the backbenches is to be admired because they retired on what we erroneously interpret as principles!

      Surely we have no right to complain about politicians if we ourselves have such puerile understanding of politics.

      I could not care less about personalities or style but I favour pragmatic people with the good sense and capabilities to get the job in hand done. It would appear that most people prefer to live in a fairytale world than live in real world and accordingly process information without a bit of sense. Isn’t it time we woke them from their slumber?

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    • Sham 29/09/12 #

      Blathin I couldn’t agree more, politicians having “principles” is an obstruction not a benefit. People in the real world who actually have experience of running things (businesses, institutions etc) don’t work on the basis of a rigid set if beliefs which conflict with reality. Imagine if a CEO resigned because she was required to cut costs and streamline a business that was bankrupt, but she refused because because she “believed” that it wasn’t fair and that money should be raining from the sky. She’d be ridiculed. Ultimately Rosin (ex teacher who never ran a thing in her life) wasn’t up to the challenge of the office she was given. And to celebrate that she gets a €30k payoff!

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    • Whether or not she decides to take the generous payoff will be the biggest test of her principles.

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    • Blathin, you are the best wind up artist yet. Looking forward to more of your writings. Definitely indicates the opposite views to logical thinking.

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    • @sham, to be fair the issue she finally drew the line at was the senior minister expanding the list of primary care centres from twenty to 35 without consultation. If the issue she had was related to a desire for free spending surely she would have applauded his decision.

      Reply
  • I’m just wondering are WE the taxpayer paying for the standin teacher for RS as well as her severance pay, as well as her salary, as well as her expenses, as well as her……well you get the picture I hope

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  • So much for gender equality, if I read it right Shortall gets 33k for 19 months or just under 21k a year whilst White, her male successor, gets 37k a year for the same job. Although he does lose his committee pay he is still getting paid significantly more

    Reply
  • Barty 29/09/12 #

    I would call Shortall a whistleblower regarding the nod nod wink wink actions of the Minster for wealth sorry Health on the queue jumping on possible sites in his constituencie.

    Reply

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