Fury over pension perk for minister O'Keeffe tops up €200,000 wage with €12,000-a-year payment

THE controversy over ministerial salaries and pensions was reignited last night when it emerged that a Cabinet member is being paid €12,000 a year on top of his €200,000 wage.

Education Minister Batt O'Keeffe is getting a teaching pension of €12,000 after tax, or €230.45 per week, from his time as a college lecturer -- a job he has not held since becoming a TD in 1987.

This is on top of his Cabinet salary of €200,000 plus other ministerial perks.

Mr O'Keeffe is collecting his pension -- worth more than the average social welfare payment -- as he oversees 32 budget cutbacks in schools and the Government claims it "must lead by example" in the economic downturn.

The revelation highlighted concerns that a number of TDs and ministers, who are former teachers, are operating a system whereby they are building up generous public service pensions for years during which they never actually worked in the classroom.

Mr O'Keeffe's spokesman said the pension arises from 27 years' public service working between full-time lecturing and his seven-year period in the ESB.

But for another 13 years, while he was serving as a TD, the taxpayer was funding two public sector pensions for Mr O'Keeffe -- one as a Dail deputy and one as a teacher.

And now the minister is reaping the rewards, on top of his €200,000-a-year salary.

He will also get a pension as a minister when he finishes up in Cabinet.

The minister's annual teaching pension of €11,983 is a net figure, after tax, so the sum is actually far larger.

The revelation of the minister's pensions payment also comes as the Cabinet considers reforms to the payment of pensions to sitting TDs.

The cost to the taxpayer of so-called 'Rolls-Royce' index-linked, public sector pensions is now a huge drain on the strained exchequer finances.

The Government said it was stopping the arrangement where former ministers are paid ministerial pensions while they are members of the Oireachtas. But this was subsequently watered down and the Government is negotiating a reduction in these ministerial pensions.

The 400,000 people now on the dole queues get a maximum of €204.30 a week, or €10,600 a year.

Mr O'Keeffe (64) took early retirement as a lecturer in 2005 when he was 60. However, he is now suspending the early retirement programme for teachers.

Another Cabinet member getting a teaching pension is Government Chief Whip Pat Carey, who is being paid a pension for the 30 years served in the classroom and 10 years as a backbench TD.

Independent TD Finian McGrath is also in receipt of a pension and a number of other TDs are refusing to say if they are getting one or not.

Independent MEP Marian Harkin was getting a teacher pension, but cancelled it three months ago.

The ministers can also look forward to a TD pension of around €50,000 and a ministerial pension worth €70,000.

Mr O'Keeffe's spokesman said the minister is receiving a pension as declared in his return to the Standards in Public Office Commission. "As you're aware, all issues in relation to Oireachtas members, including ministers, and teacher/lecturer leave of absence pay and pension entitlements, are under review by the Government," the spokesman said.

Fine Gael leader Enda Kenny is not getting a teacher pension at the moment.

Foreign Affairs Minister Micheal Martin, Social Welfare Minister Mary Hanafin and Transport Minister Noel Dempsey also stand to receive a teaching pension, on top of their TD and ministerial pension.

Mr Martin is refusing to quit the teaching post he has not worked in for 20 years because he is worried about losing his job as a minister and a TD.

- Aine Kerr and Fionnan Sheahan