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Lavish MP pensions on chopping block
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abc
Jan 10, 2012, 11:57:33 AM1/10/12
to
Lavish MP pensions on chopping block
John Ivison Jan 10, 2012
Stephen Harper is prepared to include MP pensions in his government's new
austerity measures.
Members of Parliament are likely to see the generous terms of their
gold-plated pensions significantly eroded as part of the Harper
government’s deficit reduction budget this spring.
Stephen Harper had hinted in an interview last week that part of the
strategy to reduce the deficit will include changes to programs that are
likely to see ballooning costs as the number of retirees increases, such
as public service pensions and Old Age Security. “We’ve got to make sure
that we have, with an ageing population, a series of programs that are
sustainable over the long-term,” he said.
As the National Post has written, the government is considering moves
that could phase out lucrative defined benefit pension schemes for new
hires in the public service and raise the age at which Canadians qualify
for OAS from 65 to 67.
Related
John Ivison: Public pensions a fat target for Conservatives
However, the Prime Minister knows that he cannot ask public servants and
Canadian seniors to suffer austerity measures while MPs benefit from one
of the most lavish pension plans in the country. Possible reforms to the
MPs’ scheme could include raising the minimum retirement age (currently
55) to lengthening the period of time it takes to qualify for a pension
(currently just six years).
Senior sources said that a decision on public service pensions has not
yet been made, largely because of legal and legislative barriers to
unilateral changes. But the source confirmed the government could still
move on MPs’ pensions, even if it holds off on reforms covering the
bureaucracy. He said all three strands of pension policy are linked as
part of the government’s plan to make sure there is sustainability and
fairness in the system.
Ian Lee, a professor at Sprott Business School, said the government would
be smart to address what he called “the profound unfairness of MPs’
pensions” before it moves on broader reforms.
“The government cannot ask ordinary Canadians to put their shoulder to
the wheel and carry to the burden of austerity – if the elites are not
sharing in the pain,” he said.
MPs’ pensions have long been a lightning rod for criticism. Preston
Manning and his Reform Party MPs “opted out” of the government pension
plan when they came to Ottawa in 1993, but opted back in when then-prime
minister Jean Chrétien gave them the chance in 2000.
The formula that determines MPs’ pensions has been reduced since then but
remains extremely prodigal. The latest numbers show that taxpayers pay
$5.50 for every $1 that MPs and senators contributed to their pension
plan. Most private schemes call on the employer to contribute $1 for
every $1 added by the member. The parliamentary pension scheme paid out
$48.8-million in the 2009/2010 fiscal year to 503 former MPs and senators
collecting pension benefits. The report said 117 of them received more
than $70,000 a year, with the average for senators being $56,512 and for
MPs $53,586.
Since then, 113 more MPs were defeated at the last election and will
receive millions more in pensions and severance payments. There was an
outcry last May when it emerged that defeated Bloc Québécois leader,
Gilles Duceppe is in line to receive $140,000 a year from taxpayers,
despite devoting his career to breaking up the country.
Handout
MP Pierre-Luc Dusseault can aim for Freedom 25.
MPs are eligible for a pension after serving in the House for six years,
and pensions are calculated on the best five earnings years. On a current
salary of $157,000 a year, MPs qualify for an indexed lifetime pension of
$27,000 when they reach 55. That means a six-year MP who reaches the age
of 80 could receive a minimum of $675,000.
The absurd munificence of the scheme is apparent from just one example:
Pierre-Luc Dusseault, who became Canada’s youngest ever MP when he was
elected as a member of the NDP in Sherbrooke, will qualify for his
pension before his 26th birthday, if he is re-elected.
As Sprott’s Mr. Lee put it: “Presently there are three classes of
Canadians concerning pensions: First-class Canadians who receive MPs
pensions; government-class Canadians, who get public service pensions,
with retirement at 50 or 55; and cattle-class Canadians, who collect OAS
at 65. Or, as Orwell said: ‘All animals are equal, but some animals are
more equal than others’.”
John Ivison Jan 10, 2012
Stephen Harper is prepared to include MP pensions in his government's new
austerity measures.
Members of Parliament are likely to see the generous terms of their
gold-plated pensions significantly eroded as part of the Harper
government’s deficit reduction budget this spring.
Stephen Harper had hinted in an interview last week that part of the
strategy to reduce the deficit will include changes to programs that are
likely to see ballooning costs as the number of retirees increases, such
as public service pensions and Old Age Security. “We’ve got to make sure
that we have, with an ageing population, a series of programs that are
sustainable over the long-term,” he said.
As the National Post has written, the government is considering moves
that could phase out lucrative defined benefit pension schemes for new
hires in the public service and raise the age at which Canadians qualify
for OAS from 65 to 67.
Related
John Ivison: Public pensions a fat target for Conservatives
However, the Prime Minister knows that he cannot ask public servants and
Canadian seniors to suffer austerity measures while MPs benefit from one
of the most lavish pension plans in the country. Possible reforms to the
MPs’ scheme could include raising the minimum retirement age (currently
55) to lengthening the period of time it takes to qualify for a pension
(currently just six years).
Senior sources said that a decision on public service pensions has not
yet been made, largely because of legal and legislative barriers to
unilateral changes. But the source confirmed the government could still
move on MPs’ pensions, even if it holds off on reforms covering the
bureaucracy. He said all three strands of pension policy are linked as
part of the government’s plan to make sure there is sustainability and
fairness in the system.
Ian Lee, a professor at Sprott Business School, said the government would
be smart to address what he called “the profound unfairness of MPs’
pensions” before it moves on broader reforms.
“The government cannot ask ordinary Canadians to put their shoulder to
the wheel and carry to the burden of austerity – if the elites are not
sharing in the pain,” he said.
MPs’ pensions have long been a lightning rod for criticism. Preston
Manning and his Reform Party MPs “opted out” of the government pension
plan when they came to Ottawa in 1993, but opted back in when then-prime
minister Jean Chrétien gave them the chance in 2000.
The formula that determines MPs’ pensions has been reduced since then but
remains extremely prodigal. The latest numbers show that taxpayers pay
$5.50 for every $1 that MPs and senators contributed to their pension
plan. Most private schemes call on the employer to contribute $1 for
every $1 added by the member. The parliamentary pension scheme paid out
$48.8-million in the 2009/2010 fiscal year to 503 former MPs and senators
collecting pension benefits. The report said 117 of them received more
than $70,000 a year, with the average for senators being $56,512 and for
MPs $53,586.
Since then, 113 more MPs were defeated at the last election and will
receive millions more in pensions and severance payments. There was an
outcry last May when it emerged that defeated Bloc Québécois leader,
Gilles Duceppe is in line to receive $140,000 a year from taxpayers,
despite devoting his career to breaking up the country.
Handout
MP Pierre-Luc Dusseault can aim for Freedom 25.
MPs are eligible for a pension after serving in the House for six years,
and pensions are calculated on the best five earnings years. On a current
salary of $157,000 a year, MPs qualify for an indexed lifetime pension of
$27,000 when they reach 55. That means a six-year MP who reaches the age
of 80 could receive a minimum of $675,000.
The absurd munificence of the scheme is apparent from just one example:
Pierre-Luc Dusseault, who became Canada’s youngest ever MP when he was
elected as a member of the NDP in Sherbrooke, will qualify for his
pension before his 26th birthday, if he is re-elected.
As Sprott’s Mr. Lee put it: “Presently there are three classes of
Canadians concerning pensions: First-class Canadians who receive MPs
pensions; government-class Canadians, who get public service pensions,
with retirement at 50 or 55; and cattle-class Canadians, who collect OAS
at 65. Or, as Orwell said: ‘All animals are equal, but some animals are
more equal than others’.”
abc
Jan 10, 2012, 12:11:31 PM1/10/12
to
Leave untouched the age at which Canadians qualify for OAS. Keep it at 65.
Do not increase it to 67.
Reform the qualification to receive MP's pensions and public service
pensions. Bring them up to match those of ordinary canadians.
Everybody at 65; with so many years of seniority/service.
Once and for all, make everybody equal and bring social equality.
There is already inequity in the earnings.
In article <20120110-1...@abc.shawnews.vc.shawcable.net>,
a...@a123.ca says...
John Fleming
Jan 10, 2012, 9:40:15 PM1/10/12
to
On Tue, 10 Jan 2012 08:57:33 -0800, while chained to a desk
in the scriptorium abc <a...@a123.ca> wrote:
> $Lavish MP pensions on chopping block
> $
> $John Ivison Jan 10, 2012
> $
> $Stephen Harper is prepared to include MP pensions in his government's new
> $austerity measures.
Give the parliamentary pension plan the same terms as the
public service pension plan.
--
John Fleming
Edmonton, Canada
Old MacDonald had a farm E-I-E-I-O
And on that farm he had a genome E-I-E-I-O
With a SNP SNP here and a SNP SNP there,
Here a SNP, there a SNP, everywhere a SNP SNP
Old MacDonald had a farm E-I-E-I-O
in the scriptorium abc <a...@a123.ca> wrote:
> $Lavish MP pensions on chopping block
> $
> $John Ivison Jan 10, 2012
> $
> $Stephen Harper is prepared to include MP pensions in his government's new
> $austerity measures.
Give the parliamentary pension plan the same terms as the
public service pension plan.
--
John Fleming
Edmonton, Canada
Old MacDonald had a farm E-I-E-I-O
And on that farm he had a genome E-I-E-I-O
With a SNP SNP here and a SNP SNP there,
Here a SNP, there a SNP, everywhere a SNP SNP
Old MacDonald had a farm E-I-E-I-O
Greg Carr
Jan 12, 2012, 4:15:48 PM1/12/12
to
On Jan 10, 9:11 am, abc <a...@a123.ca> wrote:
> Leave untouched the age at which Canadians qualify for OAS. Keep it at 65.
> Do not increase it to 67.
>
> Reform the qualification to receive MP's pensions and public service
> pensions. Bring them up to match those of ordinary canadians.
>
> Everybody at 65; with so many years of seniority/service.
>
> Once and for all, make everybody equal and bring social equality.
>
> There is already inequity in the earnings.
>
> In article <20120110-165733.26...@abc.shawnews.vc.shawcable.net>,
> Leave untouched the age at which Canadians qualify for OAS. Keep it at 65.
> Do not increase it to 67.
>
> Reform the qualification to receive MP's pensions and public service
> pensions. Bring them up to match those of ordinary canadians.
>
> Everybody at 65; with so many years of seniority/service.
>
> Once and for all, make everybody equal and bring social equality.
>
> There is already inequity in the earnings.
>
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