A report in today’s Irish Independent said that local Fianna Fáil TD Eugene Murphy is among a number of newly elected TDs and out-going County Councillors who are set to receive a taxable “retirement gratuity” payment for their years of service on Local Authorities.
Having served on Roscommon County Council since 1985 Eugene Murphy is set to receive the largest payment, estimated to be in the region of €59,000. The payment is taxable and paid in lieu of a pension.
The new TD informed the Irish Independent that he would be donating €12,500 to local causes, though he had not intended on making that public. “I never made money out of politics,” he told the paper, adding that he estimates he has donated around €70,000 to community groups in his area over the years.
Of the retirement gratuity, he said: “We don’t get a pension but I do accept it’s a very substantial amount of money, particularly with the state of the country now, and that’s why I’m donating so much of the money back.” He concluded by saying that he would use some of the cash for his election costs.
Since 2002, councillors have been paid an annual salary known as a ‘representational payment’. This is around €16,700 for what is considered a part-time job, although many work in the roles on a full time basis.
The “retirement gratuity” is paid to those representatives who are aged 50 years old and over after they leave the local authority. Newly appointed Minister for Agriculture Michael Creed TD is in line to receive a retirement gratuity worth €34,386 from Cork County Council however when contacted by the paper he said that he would be contacting the authority seeking to have the payment deferred for the duration of his ministerial career.
The full article can be viewed here