Ireland's Minister for Justice to receive $418,000 in first year after retirement

READ MORE- Irish Minister for Justice will step down after General Election 2011

Minister for Justice Dermot Ahern is set to receive almost $418,000 (€320,000) in the 12 months proceeding his retirement from Irish parliament.

The huge fund will be a combination of pensions payments and once off payments.

More than $228,000 (€175,000) will be tax free. A year after he retires, Mr Ahern will benefit from a combined annual ministerial and TD's pension of more than $167,000 (€128,300), more than he stands to earn if he remains a TD. The Louth TD currently earns over $128,000 (€98,400).

Mr Ahern will benefit from five separate arrangements in the 12 months following his retirement. His Parliamentary salary has dropped from $139,000, it is his former higher salary that will be taken into account for pension purposes.

A solicitor by profession, he will be paid a tax free lump sum, totaling 1½ times his salary, to which all public servants are entitled to upon retirement. He will also avail of tax-free termination allowance especially for members of the Oireachtas, which will amount to two months salary totaling $23, 216 (€17,763).

The Justice Minister will also enjoy slightly higher pension payments for the first year due to a termination payment allowance which will issue his pension at 75 percent of his salary for the first six months, before dropping to 50 percent.

Mr Ahern (55) will be entitled to collect his pension as soon as he retires from the Irish parliament.

Yesterday Mr Ahern made the announcement that he planned to stand down after next year's general election due to health reasons.

Speaking on RTÉ's Today with Pat Kenny yesterday, he said he has been advised to reduce the pace of his life.

"I canvassed in Donegal and I physically was not able to move after one days canvassing because of the pain. That is something I am going to have to live with but I’m told if I am to have any chance of that dissipating obviously my pace of life has to change somewhat,” he said.