Alberta MLAs may get their fourth raise in less than two years this February, if the federal government increases the maximum annual RSP contribution limit. If Ottawa raises the maximum limit from $13,500 to $21,000 in its budget next month, Alberta MLAs will get an extra $3,750 per year, paid for by Alberta taxpayers.

But how is it possible for a decision made in Ottawa to result in Alberta taxpayers paying more money to their provincial MLAs

In August of 2001 the PC, NDP and Liberal MLAs on the Members' Services Committee voted unanimously to start paying themselves an "RSP allowance" based on 50% of the maximum allowable RSP contribution limit, which was then $13,500. Suddenly, without any public input or consultation, all 83 MLAs started receiving an extra $6,750 per year, paid for by Alberta taxpayers.

"We don't have a pension plan," said the MLAs in 2001, as if every person has a God-given right to work for a generous employer who pays for a pension plan. But in fact most Albertans don't have a pension plan. Most Albertans, if they don't want to be entirely dependent on what the Canada Pension "Plan" might pay them someday, must save up for their own pensions themselves.

In any case, it was the choice of MLAs in 1993 to abolish their pension plan, even though tens of thousands of Albertans were only asking that the plan be scaled back to something reasonable. If MLAs really needed and deserved a pension plan, why did Premier Klein get rid of it just prior to the 1993 provincial election Why did Premier Klein abolish the MLA pension plan loudly and publicly in 1993 and then stay out of sight when an "RSP allowance" was quietly introduced in 2001

The Canadian Taxpayers Federation is not opposed to MLAs having a reasonable pension plan, or an "RSP allowance," or a pay increase. But MLA compensation must be the result of a fair, open and transparent process which allows for public input and consultation.

This current policy of setting MLAs' "RSP allowance" at 50% of the maximum annual contribution limit has the practical effect of enabling Liberal Finance Minister John Manley to increase (or decrease) the remuneration received by Alberta MLAs and paid for by Alberta taxpayers. Alberta's MLAs should not have delegated this power to federal politicians 2,500 miles away.

Alberta taxpayers - including MLAs - would do better if Alberta followed the examples of B.C., Manitoba and Ontario. These provinces pay their politicians a straight salary, just like a salary earned by anyone else, without a tax-free allowance and without an "RSP allowance."

However, as long as Alberta's MLAs insist on paying themselves a separate "RSP allowance," its amount should be determined in Alberta by Albertans, and not according to the whims of federal tax policy.

The Members' Services Committee meets on Tuesday January 29. In the interest of transparency and accountability, the PC, NDP and Liberal MLAs on this committee will (hopefully) change the current policy. This will be their last chance to do so before the federal budget next month.