ONE MORE senior civil servant is entitled to retire with a pension package under the same scheme as the former secretary general to the government Dermot McCarthy. Mr McCarthy retired in July with an overall package worth €713,000.
The secretary general at the Department of Jobs, Enterprise and Innovation, Seán Gorman, can also retire under the terms of the top-level appointments committee (TLAC), which Minister for Public Expenditure Brendan Howlin has committed to overhauling. Mr Gorman has notified his intention to retire before March.
Mr Howlin told the Dáil yesterday he understood “one more individual” would qualify under the appointments committee’s terms. He did not name Mr Gorman. “I have a particular problem with the TLAC severance payment and I have asked the department to see how I can deal with it. In essence, I have sought a way of abolishing it.
“I want to make clear that I am not interested in grandstanding on this. I do not want to make a pretence that I can do something if I cannot do it and I end up sending lawyers to the High Court costing us more money.
“I understand one more individual who would qualify under the TLAC terms, and not 55 as quoted in the newspapers, has notified the department of retirement prior to the end of February. I am not sure what I can do about this. I have asked the department to examine it. There may be more who have yet to notify the department.”
Mr Gorman was previously assistant secretary in the labour force development division of the Department of Jobs, Enterprise and Innovation. His responsibilities included labour market policy, economic immigration and management of the European Social Fund in Ireland. He was also the representative of the Minister on the board of Fás. He previously served on the boards of Cert/Fáilte Ireland, the State tourism agency, and Shannon Development.
The TLAC was established in 1987 to bring younger people into top levels of the Civil Service.
A €200,000 maximum pay rate for new secretaries general of government departments was introduced in June this year, representing a reduction of almost 30 per cent on 2008 pay rates. Current secretaries general effected waivers to bring their remuneration within the new limit.
The issue of Mr McCarthy’s package was raised in the Dáil by Fine Gael TD Derek Keating during the new “topical issues” slot.
In addition to his annual pension of €142,670, Mr McCarthy was also paid a once-off lump sum of €428,011. He was also entitled to another special severance payment of €142,670. The overall package was worth €713,000.
On retirement, all public servants are entitled to a lump sum, worth 1.5 times the final salary. The sum is untaxed for all but the highest earners and has become contentious in recent years.
While Mr McCarthy’s annual salary fell from €285,000 to €208,000 due to pay cuts affecting top public servants and ministers, his final salary for pension purposes remained the original figure of €285,000, leaving him a lump sum of €428,000.
