Golden handshakes: Michael Noonan, former Taoiseach Enda Kenny and ex-Sinn Féin president Gerry Adams are among 18 TDs retiring ahead of the election

Retiring TDs are set to share in an estimated €22m pension bonanza as political parties scramble to deal with the fallout from the controversy surrounding the increase in the pension age for voters.

Analysis of the 17 retiring TDs, including Enda Kenny, Michael Noonan and Gerry Adams, shows they will be entitled to massive golden handshakes and substantial pensions after stepping down ahead of the election.

Meanwhile, public anger is growing over Government plans to increase the age for the State pension from 66 to 67 years old next year. Last night, Taoiseach Leo Varadkar said Fine Gael would introduce a transitional pension for people waiting to receive the State pension and it would match what they were entitled to.

"There are people who are required by their contracts to retire at 65 or 66, before the new retirement age, and they don't want to have to sign on and we hear that, we get that, we accept that's a problem," he said.

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However Social Protection Minister Regina Doherty seemed to contradict him, saying the transitional pension will only apply to those retiring at 66.

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Fine Gael and Fianna Fáil have struggled to offer a coherent policy on the pension age, while Sinn Féin has pledged to reduce it to 65 and the Labour Party said it would stop it from increasing to 67.

It also emerged that public sector workers are not affected by the pension age change because they receive a substitute payment between when they retire and when the State pension kicks in.

Private sector workers are forced to sign up for Jobseeker's Benefit if they retire before 66.

Canvassing in Adare, Co Limerick, last night, Mr Varadkar said his party was working on the details of the transition pension, adding he accepted it was a problem that people aged 65 or 66 have to sign on for a Jobseekers' payment before they can get the State pension.

"So we're working on a proposal to put in place a form of state transition pension that means that people will in those circumstances be able to get their pension early," he said.

Asked if it would be the same amount as the State pension of just under €250 per week, he said: "That's the plan."

He said Fine Gael expected to have a costed plan to introduce the transition payment included as part of its general election manifesto which will be published later this week.

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However, Ms Doherty appeared to contradict Mr Varadkar. In a statement issued late last night, she stipulated that the transition pension will be for those retiring at 66 and made no mention of those retiring at 65.

"Tonight, I can confirm that this new transition pension will be paid at a rate equivalent to the Contributory State Pension. This change provides financial certainty to people retiring at 66," she said.

Fianna Fáíl is also promising a transitional payment matching the State pension for those waiting for the payment.

Meanwhile, it can be revealed that former taoiseach Enda Kenny, who was a TD for 42 years, will receive an estimated retirement lump sum of around €140,399 along with an annual payment of about €46,800.

Mr Kenny's pension would be worth more than €3.2m if it was bought on the private market at today's rates.

Mr Noonan is estimated to receive a similar lump sum and pension as his former cabinet colleague and long-time political ally.

The long-time Limerick City TD's pension would be worth around €2.7m if it was bought from a private pension company.

Former Ceann Comhairle Seán Barrett is also entitled a similar pension to his Fine Gael colleagues as he has worked the maximum number of Dáil years to receive a full pension.

Mr Barrett's pension would be worth around €2.8m if bought from a private firm.

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The pension details were compiled by financial analyst Karl Deeter, who previously estimated the worth of TDs for the 'Sunday Independent's' Political Rich List.

Mr Deeter told the Irish Independent: "Political pensions are exceptionally generous. Even with reforms, it puts politicians above regular people and this should be looked at."

Mr Deeter's figures show controversial Fine Gael TD Dara Murphy will be entitled to a €63,179 lump sum and €21,060 annual pension once he reaches 66. Mr Murphy's entire pension would be worth €687,988 if bought from a private company.

Former Sinn Féin leader Gerry Adams, who was a TD for nine years, is entitled to an estimated lump sum of around €63,000 and an annual pension of €21,060.

The cost of Mr Adams's pension in the private market would be an estimated €686,592. Mr Adams's Sinn Féin colleagues Martin Ferris (€1.5m) and Caoimhghín Ó Caoláin (€1.7m) are also set to receive substantial pension payments.

A Sinn Féin spokesperson confirmed the retired TDs were entitled to keep their full pensions under party rules.

"Oireachtas pensions are a matter for individuals and the party has no role whatsoever in what is paid to former TDs or what they do with their payments," he said.

There are no figures for Fianna Fáil TDs as none choose to retire ahead of this General Election.

However, there was public anger ahead of the 2011 general election when the pension entitlements of retiring Fianna Fáil ministers were revealed.

TDs could previously get their pensions from the age of 50, but this has since changed and they now are entitled to the payments only when they reach 66.

Irish Independent