Former Taoiseach (Prime Minister) Bertie Ahern will receive a special "golden parachute" severance payment of $95,000 because he is no longer a government minister.

News of the payment, available under a scheme that Ahern himself signed in 1992 when he was finance minister, drew criticism from Fine Gael enterprise spokesman Leo Varadkar. He claimed large severance payments for retiring ministers does little for the credibility of politicians at a time they are calling for cutbacks.

Ahern, who is still in the Dail (Parliament) on the back benches, continues to draw an annual $140,000 salary as a TD (member of Parliament).

With Dail service unbroken since 1977 and more than 10 years as taoiseach, Ahern will qualify for maximum retirement pension of around $300,000 when he leaves national politics altogether. He is not expected to contest the next general election.

Details of the special payout were obtained by RTE through the Freedom of Information Act which also revealed that two former junior ministers, Michael Ahern and John Browne, who were demoted in May, will receive almost $75,000 golden parachutes in addition to their $140,000 salaries as TDs.

Donegal TD Pat "The Cope" Gallagher, a former junior minister who was also overlooked when the new administration was being formed by new Taoiseach Brian Cowen, did not opt for the special payment scheme.

Browne and Michael Ahern said they are entitled to their payments and are doing nothing wrong and are operating under legislation as laid down by both houses of parliament.

The news follows reports that $4.2 million was paid out in severance payments to 53 former TDs and a senator who failed to get re-elected at the last general election.

Varadkar asked why the special payments were not scrutinized by the Department of Finance at a time when the public finances were under huge pressure. "I think it should be looked at during a time when the government is supposed to be reining in public spending. When Germany had a similar crisis six or seven years ago, they actually did cut back on ministerial pay and perks," he said.

"Members of the government and all politicians would have more credibility with the public if we practiced what we preached."

A spokesman for the Finance Department said there were no plans to adjust pay and allowances for TDs, senators or ministers in the forthcoming budget, though he said these matters were kept under periodic review to ensure value for money.

The spokesman explained that ex-ministers are entitled to be paid in full from the time they resign from office, irrespective of whether or not they continue serving as TDs.

Several senior opposition TDs, including Fine Gael leader Enda Kenny and former leader Michael Noonan, are in receipt of ministerial pensions.