• Backgrounder

VANCOUVER: The Canadian Taxpayers Federation (CTF) revealed today yet another MLA perk – a change to the recommendation in the Report of the Independent Commission to Review MLA Compensation that creates the potential for full pension benefits to one-term MLAs should they go on long-term disability. 

"Politicians tried to shield themselves from accountability by handing responsibility for changes to their compensation package to a politically appointed commission," said Maureen Bader, BC Director of the CTF. "But MLAs gave themselves a costly benefit not widely available to regular taxpayers by sneaking a change in on the very last line of the legislation. They cannot duck accountability on this one." 

The Commission's original recommendation limited the pension liability taxpayers would be left with if an MLA went on long-term disability. However, MLAs added a clause in the pension legislation to take away that limit, leaving taxpayers to fund an MLA's pension contribution for as long as the MLA is on long-term disability. 

"That clause came in under the radar screen with no debate because politicians on both sides wanted it," said Bader. “It’s amazing how well politicians work together when they’re trying to line their own pockets.” 

According to CTF calculations, the Commission's original recommendation would give a one-term MLA, if disabled today, a pension of about $28,000 per year at age 65. However, the pension legislation passed by the MLAs means an MLA could get up to 70% of current salary, or a pension of more than $70,000 per year, even if the MLA only worked four years. Before the return of the gold-plated pensions, if an MLA took long-term disability payments, pension contributions would stop. 

"To get a deal like this, a person would need a gold-plated pension just like the one the MLAs gave themselves two years ago, and one that more than 75% of people working in B.C. don't have," continued Bader. 

"While no one begrudges a person disability coverage, MLAs changed a recommendation they didn't like after justifying the massive pay increases and gold-plated pensions by saying it was just going along with the Commission's recommendations," said Bader. "Politicians create their own rules and leave taxpayers on the hook for the bill."