OTTAWA: Today the Canadian Taxpayers Federation (CTF) “decorated” the lawn of Parliament Hill with 75 pink plastic pigs to highlight the number of MPs who will become pension-eligible on June 28th. The CTF also renewed its call for Parliament to reform the gold-plated MP pension plan, bringing it into line with private sector pension plans.
The CTF also released pension
estimates for each of the 75 MPs, including annual pension entitlement (in today’s dollars) as well as potential lifetime earnings.
“MPs enjoy by far the most lavish pension plan in Canada. The MP pension-hogs need to get their snouts out of the trough and lead by example by reforming the plan,” said CTF Federal Director Kevin Gaudet.
MPs elected in the June 28, 2004 General Election will have served the minimum six-years necessary to qualify for the lavish pension which may begin at the age of 55. Most pension plans in the private sector - where there are any - match $1 for $1 dollar. For every dollar contributed to the MPs’ pension plan, it is topped up with $4.50 of taxpayer money. Further, most private sector pension plans are “defined-contribution” whereas MP and most other public sector pension plans are the more lavish “defined-benefit” pension plans.
Annual MP pension amounts are determined by a formula awarding 3 per cent of an MP’s best five-years of earnings for each year of service. Additional positions (such as leaders, ministers and committee chairs) receive an increased percentage in proportion to their salary. Even upon leaving Parliament, MP pension payments continue to increase based on a formula averaging 3.3 per cent every year.
Class of ‘04 pensions vary from a ‘low’ of $32,313 to as much as $44,135 per year. The amount an MP is eligible to collect continues to increase the longer they serve. Lifetime estimates range from $172,587 to $1,195,273. If the entire Class of ’04 retired on December 31, the CTF estimates that they would collect more than $59.9 million, using a life expectancy of 75-years.
Surrounded by a herd of 75 ornamental pigs on Parliament Hill, CTF Federal Director Kevin Gaudet denounced the pension plan, “MPs enjoy the most generous retirement package in Canada. For only six-years work, MPs can collect on average $788,000 in pension payouts over their lifetime, a figure that continues to grow at an astounding rate the longer they sit in Parliament. Pension reform in Canada should start at the top with MP pension reform.”
The CTF has been a long-standing opponent of “gold-plated” MP pension plans, garnering front-page national media attention in 1995 when it similarly decorated Parliament Hill with ornamental pigs.
Read backgrounder here.
For more information please contact:
CTF Federal/Ontario Director Kevin Gaudet
1-877-267-3218 (work) or 1-416-725-0501 (mobile)
kgaudet@taxpayer.com
