MP's pensions

[Topaz]

It was brought to my attention that the MP's after 6 years can get a pension of at least $100,000. yrly after they turn 55. Now why do they get to get their pensions at 55 when most Canadian have to wait til 65??? Any why 100,000? They get back $4 for every $ they put in, so is that why we have people running for government...the money and the pensions??? Since we have people cutting back on their wages and pensions isn't it time the governments do the same??? Thoughts http://www.upi.com/Top_News/2006/01/25/Can...26371138241763/

[Michael Hardner]

The Reform Party said they would do something about this. But they didn't.

[August1991]

As I understand it, the base pay of a federal MP is about $150,000. After 6 years sitting in the house, an MP at 55 is entitled to 30% of their average income over the previous 6 years. This percentage rises by 5% for each year of service up to a maximum of 75%.

So, if an ordinary backbencher age 55 were to retire now after 15 years sitting, he/she would receive about $113,000 annually. (This pension is indexed to inflation and is addition to any other pension.) If the MP sits on committees or is a cabinet member, then the salary is higher and the pension too. MPs also receive a severance package of 50% of their salary of they are defeated.

Link

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The BQ has a policy of changing MPs in part to take advantage of the generous pension. To do this however, the MPs must sit at least 6 years:

But the six-year rule means the parliamentarians first elected to the Commons in the 2004 campaign -- we count 83 in total -- won't hit the cash-for-life jackpot unless they keep their jobs until at least June 28 of next year.

....

The Bloc Quebecois MPs, for instance, could not possibly be influenced by the fact 39% of them were elected in 2004, and would get squat for pensions if they pulled the plug on the government this year. Could they hold their separatist noses another 13 months in return for so many subsequent years of sucking pensions out of the country they fought to break up? Mon Dieu, don't even think about it.

Weston

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Trudeau brought in this generous pension scheme for MPs in the 1970s when he also increased MP funds for riding offices and research staff. Ostensibly, this was to improve the quality of candidates running for office and to discourage MPs from taking bribes. The generous pension was also an incentive for older MPs to retire rather than hang around forever.

It's an interesting fact that members of Canadian legislatures earn considerably more than their American equivalents.

I posted this some time ago comparing Maine legislators to NB:

But what's this I read that NB (pop. 760,000) has 55 MLAs. 55! And each one earns $60,000 per year plus a tax-exempt annual "office" allowance of $25,000. [Link]

What earth shaking decisions does NB face that require all that brain power? What heavy responsibilities justify that salary?

BTW, Maine with about 1.3 million people has about 150 members in its House. They each earn around $10,000 annually. [Link]

[Jerry J. Fortin]

A generous pension to say the least. Yet is seems to do little to prevent the corruption of officials, look at what happened to Brian.

[Topaz]

We all must admit that since the "new" conservatives have been in power they haven't done much and they have had more time off than I can remember a Parliament having. Its no wonder people who have no political experience want to go to Ottawa for the perks and that is what wrong with most of the members that are Tories.

[Smallc]

A generous pension to say the least. Yet is seems to do little to prevent the corruption of officials, look at what happened to Brian.

There was a panel of experts on The Current a few weeks ago. They were talking about Mulroney and the British MP scandal. According to them, those kinds of things can't happen in Canada anymore because of the rules that we have in place. There are things that happen, but politics in Canada is actually quite devoid of corruption, according to them. I would say that they're right. There will be problems here or there, but there won't necessarily be huge problems as seen today in the UK.

[August1991]

There was a panel of experts on The Current a few weeks ago. They were talking about Mulroney and the British MP scandal. According to them, those kinds of things can't happen in Canada anymore because of the rules that we have in place.

You would hear something like that on the CBC, wouldn't you.

Then again, the federal Liberal sponsorship scandal came to light because of investigative work by the Bloc Québécois and the G&M.

[Smallc]

And there are a great many rules that have been put in place since that scandal, aren't there?

[capricorn]

We all must admit that since the "new" conservatives have been in power they haven't done much and they have had more time off than I can remember a Parliament having.

No, we must not all admit that. All the opposition has said about the Harper government is that there is not enough stimulus spending and they're being scrooges with the EI system. Other than that, the government seems to be humming along fine, even with an extended Christmas break.

Its no wonder people who have no political experience want to go to Ottawa for the perks and that is what wrong with most of the members that are Tories.

Yeah, as if newly elected MPs from all other parties don't see the plum benefits of elected office. Oh, those opportunistic Conservatives! Every other MP is answering to a higher calling.

[August1991]

And there are a great many rules that have been put in place since that scandal, aren't there?

Smallc, are you so small clueless?

[Smallc]

Why am I clueless? Because I trust the system that usually seems to find wrongdoing and then corrects it? I have faith in the systems that we've put in place in this country because they've served us well for a long time. I'm also more likely to believe a group of political science and history professors than a bunch of cynics.

[Muddy]

The Reform Party tried to change the system by example because they were never in power. The liberals ,NDP and the old PC Party laughed at them as I suspect some here did at the time. Most caved in after they became the CA then CPC. I know Werner Schmidt and I believe Preston Manning stuck it out. It was not the CP and Harper who gave us the Gold plated with Platinum trim MP pensions. It was the Liberals, lets make that perfectly clear.

[Dave_ON]

The Reform Party tried to change the system by example because they were never in power. The liberals ,NDP and the old PC Party laughed at them as I suspect some here did at the time. Most caved in after they became the CA then CPC. I know Werner Schmidt and I believe Preston Manning stuck it out. It was not the CP and Harper who gave us the Gold plated with Platinum trim MP pensions. It was the Liberals, lets make that perfectly clear.

So tell me does maintaining the status quo make them better or worse than the Liberals? I get so very tired of the CPC line that the Liberals are the ruination of our country. If they felt so strongly about it, they'd change it, truth is it's easy to critisize how the man is charge is doing a horrible job and how if you had his job you'd do so much better. Well the CPC has had the job for nigh on 3.5 years and so far it's the status quo. Now queue up the slew of "they tried but the Liberals wouldn't allow it" posts, this excuse is also wearing rather thin. When will the CPC start taking responsibility for their own actions, or perhaps more accurately inactions?

[August1991]

Why am I clueless? Because I trust the system that usually seems to find wrongdoing and then corrects it? I have faith in the systems that we've put in place in this country because they've served us well for a long time. I'm also more likely to believe a group of political science and history professors than a bunch of cynics.

I'm not a cynic in ordinary life with ordinary people but having spent several years working in Ottawa along side both politicians and bureaucrats, I developed a healthy cynicism for what you call "the system". Government actions lead more often than not to unintended consequences.

IMV, it is not rules that keep people honest but rather well placed incentives. Quis custodiet ipsos custodes?

[Muddy]

Dave On , I don`t believe the CPC has ever had a policy of changing the MP`s pension . It is a no starter as the Reform Party found out. People just don`t care. Don`t forget that once elected all MP`s get the title Honourable! A few earn the title once in office. Few are deserving.