The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
On the sixth anniversary of the 2006 federal election, the Canadian Taxpayers Federation has released a report estimating that the cost to retire the entire 41st Parliament in 2015 is at least $262 million in cumulative pensions and $15 million in severance payoffs. The CTF's report estimates that if every current MP were to stay in office until 2019, the pension tab would soar to $436 million, with an additional $9.8 million in severance payoffs. 'These are conservative estimates _ no pun intended,' said Gregory Thomas, CTF federal director. The CTF has also discovered that while officially taxpayers contribute $5.80 for every $1 contributed by an MP to an MP's pension account, the true amount is actually $23.30 for every $1 given by the MP. 'Interest' The hidden contributions are due to the government adding 'interest' into the MP pension accounts at a rate of 10.4 per cent per year _ even though MP pension funds are not invested into the market like other pension funds. This taxpayer-funded 'interest' results in taxpayers contributing $248,668 each year to each MP's pension fund, while backbench MPs can contribute as little as $10,990 per year. The base salary for an MP is $157,000. The government's chief actuary said in 2010 that the interest rate MPs are paying themselves 'is not appropriate' recommending it be cut by half. The actuary found the plan's excess, or surplus, had climbed to $175 million in 2010. 'Teachers, bus drivers, farmers, cops, small business owners, would all love to get a pension at age 55 after only six years of service,' said Thomas. 'We're putting more into MP's pension plans than we are paying them each year, and they only contribute $10,990 of that to this gold-plated pension scheme. It's a national disgrace.' Thirty-nine MPs become eligible for the MP pension plan today after six years of service. The 'Class of 06' will be eligible for a collective $1,927,000 in annual pensions in 2015, adding up to $29.1 million by age 80. The CTF is calling on MPs to shut down the current MP pension scheme and join the new Pooled Registered Pension Plan (PRPP) like any other Canadian worker. Further, taxpayer contributions should be capped at a dollar-to-dollar level. _ Compiled from a Canadian Taxpayers Federation news release
