TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 6 °C Thursday 23 May, 2013

Top civil servant to retire, aged 55, with €430,000 package

Meanwhile, Minister for Public Expenditure and Reform has revealed that one civil servant has taken a voluntary pay cut of more than 50 per cent.

Michael Scanlan is to retire in April.
Michael Scanlan is to retire in April.
Image: Photocall Ireland

THE CURRENT SECRETARY General at the Department of Health is to retire later this year with a lump sum and severance payment of over €430,000.

The Department of Health has confirmed that Michael Scanlan’s seven-year-term will come to an end on 8 April. He will be 55-years-old and clocked up nearly 38-and-a-half years working in the civil service.

The department said that, in accordance with his contract, he qualifies for a pension of €107,795, as well as a lump sum of €323,385 and a severance gratuity of €107,795.

As he is retiring after 29 February, the amounts are based on his final salary – after cuts made under the financial emergency legislation introduced. The severance gratuity is one half of his annual salary and he is eligible for a pension and lump sum based on his actual service plus 1.5 added years.

It is therefore much lower than some of his counterparts that retired before 29 February this year.

Last year, civil servants Sean Gorman and Dermot McCarthy caused massive controversy as they received retirement packages of over €630,000 and €700,000 respectively. The Government then set about to make changes to the arrangements of the exceptionally generous pension regimes.

Scanlan also steps down from his position as chairman of the HSE but has said he will play “an appropriate role after his retirement, on a pro-bono basis”.

The Top Level Appointments Committee are making arrangements to appoint a successor by open competition. Any new appointment will not be guaranteed severance payments, immediate pensions or added years.

Meanwhile, Minister for Public Expenditure and Reform Brendan Howlin told the Dáil that an anonymous senior public servant has taken a 50 per cent pay cut voluntarily.

“We have moved remarkably, but we cannot look on public servants as an amorphous group to be squeezed to solve all of our problems,” he said in response to questions about public service pay from Independent TD Stephen Donnelly.

“A couple of years ago, a Secretary General in my Department would have been earning €285,000. He is now earning €200,000. The €85,000 cut is an extraordinary reduction, and we have applied that across the board…,” said Howlin.

“We have an agreement, namely, the Croke Park agreement, under which we are bringing about objectively significant and radical reforms.”

More: Future senior civil servants face pension changes from today>

Read next:

Comments (60 Comments)

  • I just threw my lunch at the cat.

    Reply
  • Michael Who? and he did what???
    Jesus this country is getting a bigger joke by the day….

    Reply
  • my contract with the state was that I would work to 65, pay my taxes, behave & I would then be entitled to retire on a livable pension both state and self funded, that my kids would be well educated, that my home would be safe. I was promised a government that would safegaurd its people and would prosocute wrongdoers. That contract was torn up and thrown away by the State with out my agreement or any consultation, this guy works for the same state so why dont they just treat him the same as they have treated the citizens of Ireland. FF & FF & LAB always have and always will look after their own, cant see any party in this country with the will or the balls to change things

    Reply
  • So he’s been in the civil service since he was 17?

    Reply
  • FF spent more than 10 years adding fuel to this fire with so-called ‘benchmarking’, etc.
    All done to keep Bertie the clown and his merry troupe in power

    Remind me ……who kept voting them in, because It wasn’t me ???

    Lest we forget……

    Reply
    • Eh, 41.56% of the Irish electorate in 2007? So, if not you, then statistically the people on either side of you.
      Never forget that half the population is, by definition, below average intelligence, and that very few people have high intelligence. A feature of any electorate not missed by most political machines.

      Reply
  • How will he ever manage???

    Reply
  • Sickening

    Reply
  • To the civil servant who took the pay cut..fair play to you. To the fat cat retiring at 55 with a full pension. You are one of the reasons why we are all fucked. Don’t hive it to him til proper retirement age. The F*****g chancer

    Reply
    • How is he a chancer? After 38 years service and at 55 he is entitled to take it. Maybe you should blame the people who gave him this contract.

      Reply
    • My husband is a civil servant who will have the requisite 40 years service when he is 57. Because he’s further down the food chain, he won’t be allowed to retire at that point (and certtainly with NOTHING like that kind of pension!!). It’s a really elitist arrangement.

      Reply
    • It seems that “Fat Cat” is a harsh persona to attribute to this person. After all, yes it is a lot of money, but he was Chairman of the HSE, and as a high ranking Civil Servant he was involved in a lot of large decisions and national policy matters. I’m not sure I would want someone in that position who wasn’t the best available, and the only way the government can get the best available is to provide a competitive salary. If Mr. Scanlan was in the private sector he would have been earning a lot more and no doubt his pension would be even more attractive than the one he received.

      Also, of course high ranking Civil Servants get paid more than those on the lower rungs, if they didn’t no one would want the added work load and responsibility of senior positions. There are huge amounts of Civil Servants in Ireland and there is no way they can all receive Mr. Scanlan’s type of remuneration but likewise they can’t all be on €50k a year, some with responsibilities of running a €15 billion department.

      It’s not at all elitist that those in senior positions get paid a lot more, it’s just simple economics. People should stop comparing these pensions to those of other civil servants or other public service workers in Ireland, the proper comparisons are Managing Directors and CEOs in the private industry.

      Having said that, the 50% pay cut the civil servant took is highly commendable, and everyone in government should be thinking about taking that much off their salaries. All, and yes, I do mean all (no matter what level or job) salaries in Ireland are too high. That’s why we have so much unemployment, small business can’t afford to take on new people, they can barely afford the ones they have.

      Reply
    • Jeff 26/01/12 #

      Tobias Elhar, if he was in the Private Sector he would have been FIRED for the mess the HSE is in

      Reply
  • In my mind’s eye I see a PIG, a SNOUT, and a TROUGH!!!!!

    Reply
  • It is a question of locking the stable door after the horse has bolted.I would agree that if they thought anything of their country they would give back some of that Hugh pension voluntarily . They are quite aware of the financial situation the country is now in. Show some patriotism. It must start at the top.

    Reply
  • How can we still justify a pay of €200k for any civil servant for that matter. It will not be more than a 39 hour week with all the perks and expenses for this and that. We have lost all sense value. Private sector have to kick into line or it’s game up while public sector can fuck up time after time and we the Irish fools have to catch the ball every time for them. Sick of this shit.

    Reply
    • Yep, €200k is mental. But, in the interests of balance, I know that my husband has been a civil servant since he was 17. Yes, his job is secure and pensionable but the days of a 39-hour week haven’t existed for him for a long time. And, no, he doesn’t get overtime. I’m not sure what you’d count as perks but compared to my private sector job, he gets zilch and that has always been the case.

      We really need to tackle the disproportionate salaries and packages like Scanlan’s (and Dermot McCarthy’s a few months ago) but it’s unfair to tar the entire public service with the same brush. We’ve been calling for staff cuts acorss the board and we’re finally getting them. The problem is that those cuts are going to affect us all – the exit of teachers, guards, nurses, midwives etc is going to wreck the system. Brendan Howliln needs to have the balls to tackle the ridiculous salaries at the top of the tree, including to politicians (both in government and opposition).

      Reply
    • well said Cecily..and public servants at frontline have been looking for reform for years but all i can see happening now is experienced colleagues retiring and in.my case AGS no recruits and no inward investment in.vital equipment i.e. patrol.cars

      Reply
    • I don’t think €200k is obscene. We are talking here about the highest ranking employees of an organisation that employs thousands of people. If it was a private sector job it would offer over €1m in salary.

      How can we expect to attract the required calibre of people to top civil service positions if we are not paying enough? Make no mistake, while the politicians are the public faces of departments, the top civil servants are the ones with the management skills required to run huge ungainly organisations.

      Take for example the Secretary-General of the department of health. The departmental budget is approximately €14 billion. A CEO of a private company in charge of that amount of money would be earning seven figures. What chance of attracting someone of that calibre does a €200k salary have?

      Reply
    • Paul 25/01/12 #

      Ultan, we had the highest paid political leaders in the world excluding mineral rich African dictatorships and we got Bertie and Biffo, not to mention the fiasco that is pretty much every single government department “managed” by these people. it’s not always about the paycheque.

      Reply
  • Obscene!

    Reply
  • So this is the ‘lower’ amount they’re offering going forward?

    Feather bedding by ministers and senior civil servants, who feed from the same trough, while expecting everyone else to take pain and reform.

    Reply
  • alan 25/01/12 #

    well, the HSE has been such a success hasn’t it?

    AND he isn’t finished yet. He will do MORE work for the HSE (when is retiring retiring in this country?

    Will he be paid fo this (either in money or in kind)?

    Reply
  • I’ve been in the public sector since I was 17 and I have to agree that this retirement package is obscene, but what a lot of people on here seem to forget that during the ‘good times’ 90% of public sector were getting paid a lot less that their comparatives in the private sector. When I left school I made a decision to, instead of going into private and possibly earning a lot of money but to go onto public sector for security for the future. Please don’t tar all public sector workers the same as the elite few, I’ve been forced to emigrate so that I can provide better for my family while this country is run to the ground by a handful of P####S!!
    Rant over

    Reply
  • Has he been moonlighting as a barman in Coronation St? ;)

    Reply
  • jimbo 25/01/12 #

    Make him work until 65 like everybody else and then give him the state pension

    Reply
  • Ah but lads, the Croke park agreement will change all this? Sure it will, politicians, civil servants and unions all sitting round a table, there’s only one winner there!

    Reply
  • Im in the wrong job.

    Reply
  • “servant”? His is not a fu*king servant he is a master. Nanny state gone mad

    Reply
  • As I live and breath…. My adopted country is robbing me blind to support the well being and retirement of those who could care less about me… Except the money I have to support their needs! What a laugh! The joke is on me!

    Reply
  • Good luck and the best of health to him!
    Senior Civil Servants & Politicians deserve every penny they legally steal from us. If we are too STUPID or LAZY to voice our opinions or get off our BUTTS and complain to our TD’s then more fool us. They can write whatever laws and rules they wish. AND you know what, don’t kid yourself, ……… 95% of us would do the same in their position!
    Keep on voting y’all.

    Reply
    • alan 25/01/12 #

      i dont know where you get this 95% from

      the assumption that ‘everybody would do the same’ is simply a way of legitimising or dismissing what is clearly wrong. it suits the powers that be to encourage this kind of thinking (as if it was the most natural thing in the world to tend towards corruption

      i wouldn’t do the same. and i am sure there are plenty like me

      Reply
    • Alan, I have great respect for people like yourself who stand up for this kind of tyranny. I hope you are one of those people out on the streets campaigning and lobbying your TD. In my experiencing though, most just sit in front of their computers…… Including me!

      Reply
  • Up the Servants!

    Reply
  • typical civil servant bashing on show here.

    what about the corrupt bankers people?!

    Reply
    • What about the moronic civil servants charged with oversight of the banks?They were asleep at the wheel rather than protecting the interests of the people who pay their bloody wages.
      A plague on both their houses!!!!

      Reply
  • Ok it’s a huge amount of money, but that’s the contract that was agreed by both parties – him and his employer. No use bleating about it now.

    Reply
    • That’s the problem. I’m his fu*king employer and some other idiots signed the contract with him in my name.

      Reply
    • Aydo 25/01/12 #

      Agreed. Ridiculous money but he’s not to blame, it’s the idiots who designed these packages. He COULD offer some of it back as a show of solidarity with the people who paid him for his 38.5 years in the PUBLIC service.

      To whoever that public servant was who took such a huge cut, what an awesome person and what a gesture.

      Reply
    • His employer is now bankrupt.. Thus rational grounds to cancel that previous contract… Just as happened to 400,000 people in private sector over the last 4 years!!!

      Reply
    • well said nigel.

      besides they key phrase here should be “Public Servant”… no matter which word you put emphasis on, really

      Reply
    • Those in the lower & middle pay grades in the Public Sector had their wages slashed, too. Slash & burn without as much as a by your leave. It’s those at the top who have not been affected. This story angers many both in the public & private sectors. Are we going to go down the public versus private sector again ? United we stand. Divided we fall.

      Reply
  • Eh, 41.56% of the Irish electorate in 2007? So, if not you, then statistically the people on either side of you.

    Never forget that half the population is, by definition, below average intelligence, and that very few people have high intelligence. A feature of any electorate not missed by most political machines.

    Reply
  • Absolutely disgusting! How great to have a lazy ass job and be so horribly over paid for it but also to be able to retire at 55!

    Reply
  • This country is broke and needs to shed jobs in the civil service like in private business ie. redundancy and terminate their jobs. No pension or special payments. Why should people on welfare get cut money just to give the money to these people? Vita cortex is a prime example of what happens in private business and the government need to look out for the revolution.

    Reply
  • Why did he get 1.5 added years which increased his pension and lump sum?

    Added years are normally given for a good reason like when a worker is forced to retire early due to ill health. this is not the case here! Absolutely no need to augment the payout for reasons of hardship!

    Reply
  • The taxpayer pays the civil servants so as the civil servants can pay their tax and pensions etc. people who pay tax don’t all have pensions yet end up paying for the pensions of the civil servants. We should burn the bond holders and live within our means. Which means no borrowing to keep the croke park deal going strong.

    Reply
  • Existing pension levy on public servants of 7% is tax deductible so it is only 3-3.5% for higher tax band. For a private sector worker to secure the same package they would have to pay multiples of this. For example the pension fund of a retiring guard would cost their private sector neighbour €1.2 million. Yes public sector workers pay their pensions but get back far more than they put in. Two tier society.

    Reply

Add New Comment