Oireachtas Joint and Select Committees

Wednesday, 21 September 2016

Public Accounts Committee

Special Report No. 91 of the Comptroller and Auditor General: Management of Severance Payments in Public Sector Bodies

1:30 pm

Mr. Seamus McCarthy:

May I make a point? It arises in regard to the cases of the two chief executives. The termination benefit they received was bigger payments of pension earlier. It might be helpful for public bodies and the Department, when making decisions about the value of the agreement being made, to put a valuation on the added years. There is a very well-established methodology for looking forward and saying we expect to pay the pension for so many years into the future and for outlining the income of the person is getting and what it is worth today. If on the termination of a chief executive's contract in the future, a public body disclosed that he or she was given added years for pension purposes and the value of that based on actuarial advice, it would be helpful from a public accountability point of view in knowing what was happening in terms of the termination of a contract with an individual.

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