Minister for Public Expenditure and Reform Brendan Howlin is looking at ways to end the practice of Secretaries General of Government departments getting a severance payment upon retirement after a seven-year contract.
Tánaiste Eamon Gilmore made the announcement in response to a question in the Dáil from Independent TD Shane Ross.
Mr Ross called on the Government to abolish lump sums at the top of the civil service in light of the deal received by retired Secretary General Dermot McCarthy.
Shane Ross said Mr McCarthy's pension was 'salt in the wounds' of those who had their pensions levied and 'plundered' by the Government.
He also wants the Tánaiste to ask Mr McCarthy to give back the lump sum element of his deal because he is on an "enormous pension".
The Tánaiste said the levels of pensions paid in future would be reduced because of the capping of salaries of higher civil servants, but did not address the issue of Mr McCarthy's lump sum.
This afternoon, Minister Howlin told the Dáil that he has a problem with the Top Level Appointments Commission, or TLAC, severance payments which form one element of the pension arrangements of senior civil servants.
He said he would like to abolish it.
Speaking during the Topical Issue Debate, Brendan Howlin referred to it as the "more dubious" element of such pension agreements.
The minister went on to say that such elaborate lump sum payments will be reduced as of the end of February 2012.
He said there was just one more person due to retire before these changes are introduced.
Minister Howlin also said he would be introducing a single pensions Bill this term, which will alter how all pensions are determined.
He said the Bill will provide for a "career-average" calculation and not just the salary level at the end of a career.
Mr Howlin said this will affect those high up in the civil service most.
