The decision to apply a second cut to public service pensions over €100,000 was done in the interest of fairness, Minister for Public Expenditure and Reform Brendan Howlin said today.
Mr Howlin said the cut, which will save the Exchequer €400,000 a year, is part of an “extremely difficult process” aimed at undoing “decades of profligate pay and pension provisions”.
The measures will affect about 250 retired taoisigh, ministers and judges as well as heads of semi-States and universities and Garda commissioners. They will see their pension entitlement above €100,000 reduced by 20 per cent, on top of a 12 per cent reduction on pensions above €60,000 which was introduced last January.
Speaking on RTÉ radio this morning, the Minister said that in the “context of the financial emergency", there is a need to reduce the pension bill.
“Everybody has to burden share in relation to this…we need to go further and I’ve been looking at ways of doing this over time,” he added.
Mr Howlin said he did not want to frighten ordinary public servants, adding yesterday’s “measures were to look at the top end and we’ll continue to look at the top end on a fairness agenda”.
“We have to have a balance in relation to what has to be done.”
The Minister also refused to rule anything in or out in terms of the budget, adding “everything is on the table”.
