Corrupt NSW pollies stripped of pensions

Dominica Sanda

Corrupt former NSW ministers Eddie Obeid and Ian Macdonald will be stripped of their taxpayer-funded pension entitlements under legislation introduced by Premier Gladys Berejiklian.

The premier on Tuesday said the laws would result in politicians being stripped of their pension if convicted of a serious criminal offence committed during their time in office - even if they are convicted after leaving politics.

The move is targeted at former Labor politicians Eddie Obeid and Ian Macdonald, who have been convicted of misconduct in public office. Obeid is behind bars while Macdonald is awaiting sentence.

Obeid was sentenced to a minimum three years' jail after being found guilty in mid-2016 of lobbying a senior public servant in a 2007 phone call about a series of lucrative Circular Quay leases without revealing his family's stake in them.

Macdonald was found guilty in late March of misconduct charges over a valuable Hunter Valley mining licence he granted in 2008 to a company chaired by his "mate", ex-union boss John Maitland.

"Unless these changes are made, politicians convicted of serious criminal offences will be able to live off their taxpayer-funded pension entitlement and that's just not fair," Ms Berejiklian said in a statement on Tuesday.

"The days of Obeid, Macdonald and their cronies benefiting at the expense of the people of NSW are over."

Opposition Leader Luke Foley has previously noted he supports legislative change to strip corrupt politicians of their taxpayer-funded perks.

"I propose we work together to restore the community's trust in our parliament and democracy ... and ensure a proper penalty regime is in place to respond to recent events," Mr Foley said in a letter to then premier Mike Baird in September 2016.