AIB's current CEO David Duffy has written to all people at a senior level at the bank, who were involved in critical roles from 2005 to 2008, in relation to foregoing a portion of their pensions.
Mr Kenny was responding to a question asked by Sinn Féin's Mary Lou McDonald during Leaders' Questions in the Dáil today.
Ms McDonald said that Mr Sheehy's reduced pension was the type of money the average person would only see if they "won the lotto". She asked Mr Kenny what further steps the Government would take to further tackle bankers' pensions.
However, Mr Kenny re-iterated that the Government is legally prevented from interfering in such contractual pension arrangements.
"I'm glad to note that the former chief executive Mr Sheehy has made a personal decision in regard to the level of pension he intends to draw," Mr Kenny said.
"These persons have been in receipt of pensions under contractual arrangements which I can't change, and which the Minister for Finance cannot change, and which under our Constitutional law are recognised as a property right,'' he added.
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