EDMONTON: The Canadian Taxpayers Federation (CTF) today released its calculation of the severance pay to be received by two Alberta Liberal MLAs resigning to run in the federal election. Ken Nicol (Lethbridge) and Debby Carlson (Edmonton-Ellerslie) were both elected in 1993.

MLA severance pay is calculated on the basis of three months' salary for every year in office, based on the MLA's highest-earning years as Premier, Opposition Leader, Opposition House Leader, Speaker, Minister or Committee Chair. Private sector severance pay averages only one month for each year of employment; severance pay of three months for every year worked is highly unusual.

Premier Klein will receive severance pay of $569,000 if he retires in 2005.

"It's up to MLAs of all three parties to make their remuneration transparent," stated CTF-Alberta Director John Carpay.

"The government's main web page on MLA remuneration lists only the MLA salary and tax free allowance. To find the extra RSP allowance and fat severance pay packages, you have to dig through the small print that is hidden away elsewhere on the web site. There is no reason why the main web page on MLA remuneration shouldn't list the MLAs' RSP allowance and the generous severance pay packages," continued Carpay.

"In 2001, the Liberal MLAs on the Members' Services Committee voted in favour of these fat severance pay packages. They agreed whole-heartedly with Premier Klein's Tories on this issue," concluded Carpay.