Banking ‘fat cats’ spare their own pensions but ‘savage’ workers’ fund at Permanent TSB

Low-paid banking officials have been hit with pension cuts rather than the “fat cat” senior executives the Government pledged to tackle, the Dáil has heard.

Fianna Fáil leader Micheál Martin called on Taoiseach Enda Kenny to get the Minister for Finance to intervene with senior executives of the State-controlled Permanent TSB who decided to cease contributions to the defined benefit pension scheme, effectively winding it up.

Some 70 per cent of ordinary workers faced devastating losses of anywhere between 50 and 70 per cent of their pensions, he said. “Those who expected to receive a pension of €30,000 a year on retirement will now only receive €5,000 a year.”

'Fat cat'
Mr Martin said the "fat cat" senior executives "will not take any hit on their own pensions" or their pay, "but they decided unilaterally to hit the workers via their pensions".

Mr Kenny said, however, "this is an internal decision that has been taken by management and it has nothing to do with the Minister for Finance".

'Grandstanding'
Mr Martin said the Taoiseach had previously been "grandstanding . . . saying this was all about the fat cats in banks and they they would have to lead by example". This was their example following the demand by the Minister for Finance that banks should reduce pay by between 6 per cent and 10 per cent. The company's decision to withdraw its annual €127 million contribution to the pension scheme would mean "savaging the pensions of workers".

He accused the Government of washing its hands of the issue, a claim Mr Kenny denied. He said Mr Martin was asking him to intervene in an issue that was before the Labour Court.