EDMONTON: The Canadian Taxpayers Federation (CTF) today released calculations today showing the impact on Alberta MLA compensation as a result of Ottawa's decision yesterday to raise the maximum RSP contribution limit from $13,500 to $15,500 for 2003. Since August of 2001, Alberta MLAs have been paid an "RSP allowance" based on 50% of the maximum allowable RSP limit, as part of their remuneration. Increases to this limit were first announced in the federal budget in February, and have now become law as a result of yesterday's vote by MPs.

The maximum allowable RSP contribution limit was $13,500 in 2002. That rises to $15,500 for 2003, to $16,500 in 2004, and to $18,000 in 2005. Ottawa's decision means that the RSP allowance paid by Alberta taxpayers to Alberta MLAs rises from $6,750 in 2002, to $7,750 in 2003, to $8,250 in 2004, then $9,000 in 2005. Alberta MLA severance pay, based on one quarter of the MLA's total earnings after March of 1989, will also rise accordingly.

Alberta MLA compensation

April 2000 -- $67,246
($39,720 salary + $19,860 tax-free allowance with real value of $27,526)
April 2001 -- $69,501
($41,052 salary + $20,526 tax-free allowance with real value of $28,449)
August 2001 -- $76,251
($6,750 per year "RSP allowance" added to $69,501)
April 2002 -- $78,201
($42,204 salary + $29,247 [real value of tax-free $21,102] + $6,750 RSP)
March 2003 -- $79,201
($42,204 salary + $29,247 [real value of tax-free $21,102] + $7,750 RSP)
"After factoring in the RSP allowance and the effect of not paying tax on one third of one's salary, MLAs earn the equivalent of $79,201," stated CTF-Alberta director John Carpay.

"The issue here is one of transparency. The RSP allowance received by MLAs and paid for by Alberta taxpayers is tucked far away in the small print of the Members' Guide. This RSP allowance is not mentioned at all on the 'MLA remuneration' portion of the web site of the Legislative Assembly. Taxpayers have a right to know exactly how much their MLAs earn, and this information should be readily accessible - like the MLA salary and the MLA tax-free allowance," added Carpay.

"Alberta should follow the example of B.C., Manitoba, and Ontario by paying MLAs one simple, straight-forward salary, easily understood by everyone, with no room for confusion. For example, MLAs in B.C. earn $72,100 but without a tax-free portion or an RSP allowance. According to the MLA remuneration section of the Alberta Legislative Assembly web site, Alberta MLAs earn $63,306. But in fact Alberta MLAs receive take-home pay equivalent to an Albertan earning $79,201," concluded Carpay.