Fianna Fáil has published a Bankers Pensions Bill which proposes substantial cuts to the exorbitant pensions being paid to a number of the country’s retired banking executives.
 
The party’s Spokesperson on Finance, Deputy Michael McGrath stated, “The Oireachtas has a duty to respond to the justifiable public anger surrounding the extraordinary pensions being paid to some of the country’s most senior retired banking executives. The issue came to a head when AIB confirmed at a recent Oireachtas Finance Committee meeting that the Defined Benefit Pension Scheme which benefitted from a €1.1 billion bailout is the same scheme that pays enormous pensions to the bank’s retired top brass.
 
“The Fianna Fáil bill builds on the pension reductions already imposed on retired public servants and proposes tiered reductions in pension entitlements of over €100,000 by between 20% and 40% for banking executives and retired executives in the covered institutions (guaranteed banks). In view of the exceptional level of support provided by the State to the covered institutions, I believe the introduction of legislation to reduce certain pension entitlements is reasonable and justified.
 
“In recent parliamentary questions, I have asked the Minister to provide details of funds paid into the banks’ pension schemes over recent years. I have also asked the Minister to provide details of the level of pension payouts being made by the covered banks to retired executives. To date, the Minister has failed to provide these pieces of information and I am calling on him to do so without delay.
 
“Our pre-budget proposals, to be launched this week, will also include further reductions in the pension entitlements of retired senior public servants, including government ministers.
 
“On the specific issue of the remuneration levels currently being paid to senior bank executives, Minister Noonan has appointed Mercer consultants to assist his Department in reviewing pay levels across the banking system and to report before the end of year. We await the Minister’s response to this review and we expect him to deal with the fact that over 1,700 bank employees earn basic salaries of over €100,000.
 
“I am calling on the government to accept this straightforward piece of legislation to bring some semblance of justice to the pensions being paid to retired executives.”

Bill to reduce pensions of retired bank executives