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CTF Says NO to Pay Hike in Exchange for MP Pension Reform

Author: 2012/09/23

OTTAWA, ON: The Canadian Taxpayers Federation   (CTF) urged MPs not to give themselves a pay hike in order to off-set pension   reforms that would require higher contribution rates from MPs.

“Taxpayers know a shell   game when they see one,” said CTF Federal Director Gregory Thomas. “If MPs   agree to pay $11,000 more into their pension plan, and then vote themselves a   pay raise of $11,000, they won’t be fooling anybody. It makes a mockery of MP   pension reform and reinforces public cynicism.”

Currently, MPs contribute 7   per cent of their salary annually towards their own pension. At a base salary   of $157,731, MPs put $11,041 into their own pension each year. In 2010,   taxpayers contributed $110.7 million to the Parliamentary pension plan, while   politicians had $4.5 million in pension contributions deducted from their   paycheques, a ratio of $24.36 taxpayer dollars for $1 provided by   politicians.

“The Conservatives have an   opportunity to lead by example,” said Thomas. “Pension reform and extending the   salary freeze give the government the moral authority to tackle the issues   necessary to contain costs and balance the budget.”

The   2010 federal budget froze salaries for the Prime Minister, the cabinet and   MPs. At the time, Finance Minister Jim Flaherty said “Canadian families and   businesses have accepted the need for restraint. Fairness requires that   government too should have to keep costs under control.”

“Bravo,” added Thomas. “And   nothing has changed that would justify lifting the salary freeze. MPs should   only consider a raise once the budget is balanced.”

Earlier in the summer, the CTF launched billboards   across the country.

The CTF then followed up   that campaign by launching a 15-second digital   ad that was played 3.6 million times   in the washrooms of bars, restaurants and fitness centres across Toronto.

Last week, a plane hired by the CTF flew a giant banner around Parliament Hill carrying this message.

To read the Report on the Administration of the Members of Parliament Retiring Allowances Act for the Fiscal Year Ended March 31, 2011, click here.

To read the CTF’s MP pension report from January 2012 including estimated pension calculations for all sitting MPs click here.


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Franco Terrazzano
Federal Director at
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Federation

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