The State’s only directly elected mayor asked for enhanced pension terms that would build up as quickly as that of a junior minister and faster than other public servants.
John Moran, the Mayor of Limerick, raised the possibility with government officials after he took office, saying the unique nature of the role justified a better retirement plan.
Internal records detail how the Department of Housing supported his request and prepared a formal business case for government.
However, the Department of Public Expenditure rejected the proposal and said standard pension rules would apply instead.
The documents also reveal that when the directly elected mayor post was created, no provision was made for how pension arrangements would operate.
When the business case was prepared, Mr Moran was being paid a salary of almost €160,000 per year with officials drawing comparisons between his role and that of a government minister.
In the document, officials said the Mayor of Limerick was different to “an employee” and could serve only a maximum of two five-year terms.
It said Mr Moran had no contract of employment and that “by way of analogy” the post was akin “to that of a Minister for Limerick.”
The business case explained how staffing arrangements for the post were organised like that of a junior minister.
It said enhanced pension arrangements were in place for the President, the judiciary, ministers, and members of the Oireachtas.
“Standard accrual for the office of the Mayor of Limerick would make this an outlier among those holding fulltime elected office in Ireland,” the business case explained.
It said giving only a standard pension would create “an anomaly” and said the risk of “contagion” – that is, others seeking similar special arrangements – was low.
The business case argued that council CEOs were staff members while local councillors had their own arrangements for gratuity payments on leaving office.
Its conclusion said: “The Mayor of Limerick is a directly elected, fulltime representative. All other comparable fulltime elected representatives have fast accrual pension provisions.
“This is to provide some security for roles which are subject to the will of the electorate, and to make the profession of politics an attractive choice that people can reasonably make.”
It said if a fast accrual pension was in place for Mr Moran, the only other foreseeable roles it could apply to would be directly elected mayors for other councils, potentially up to thirty.
The document explained: “There are no foreseeable risks of contagion to local authority members, or to local authority employees, who have separate arrangements.”
It said the Mayor of Limerick should be given a fast accrual pension “at a minimum” as good as those applying to a TD or Senator.
However, the business case said that Mr Moran felt the post should be treated like that of a junior minister.
It said: “To note, the Department has been engaging with the current incumbent of the Office of Mayor of Limerick, whose position is that the Mayoral role should attract a fast accrual rate equivalent to that of a Minister of State.”
The enhanced pensions allow politicians to build up pension benefits more quickly than ordinary public servants to reflect the uncertainty of the job.
TDs and Senators generally build entitlement at about 2.5% of pensionable pay for each year served, while ministers and ministers of state can accrue benefits at roughly 5% a year for time spent in those offices.
They do, however, pay higher pension contributions in return.
The request for an accelerated pension for Mr Moran ultimately fell on deaf ears in the Department of Public Expenditure (DPER).
In an email, a Department of Housing official wrote: “Last year, you raised the issue of having a pension with an accrual rate faster than standard to take account of the particular nature of the role of Mayor.
“The Department was supportive of exploring such an arrangement and made a business case to DPER.”
The official said DPER had carried out its own detailed analysis of the request.
However, she wrote: “[DPER] has now written to advise that the pension terms for the role of Mayor must be compatible with the salary level sanctioned for the role.
“This salary level is Chief Executive, Local Authority Level V, and therefore they have conveyed approval for a standard accrual only pension for the holder of the office of Mayor.”
Asked about the records, Limerick City and County Council said discussions were still ongoing over how the pension issue would be handled.