- CTF Reacts to Proposed MP Pension Plan Revisions; Urges Government to Fundamentally Change MP Compensation -

Pension Fact Sheet

OTTAWA: The Canadian Taxpayers Federation (CTF) has responded to media reports that the federal government is once again planning "back door, secret, no vote" changes to the MP pension plan, perhaps as early as next month.

"Here we go again. It's one set of rules for the politicians as they line their pockets at taxpayers' expense, and another set for those whom they govern," said CTF federal director Walter Robinson. "These changes would apply to the class of '93 and would mostly benefit departing Liberal MPs who decide not to run or are defeated in the next federal election."

Media reports indicate that government House Leader Don Boudria is looking to extend severance payout provisions (currently only available to MPs not participating in the gold-plated MP pension plan) to all MPs elected between 1993 and 1997. In return for parliamentary support of these changes, MPs (mostly Canadian Alliance members) who opted out of the plan on principle would be given an opportunity to opt back into the MP pension plan.

"This is the tradeoff that MPs made in 1995 and 1998. If they opted out of the plan and saved taxpayers millions of dollars in future pension payouts, they are entitled to a small transitional severance allowance. But if they stayed in the plan, we must not forget that they will still be eligible to collect a generous pension when they turn 55, a full ten years before most Canadians are entitled to collect CPP," added Robinson.

"This is a case of trying to have their cake and eat it too. It's cut and dry. If you're in the second most generous pension plan in the country; no severance, period," stated Robinson. "We made this an issue in 1998 during our Principles before Pensions campaign and we're prepared to do it again. If MPs, through their greed, wish to give Canadian taxpayers a collective Trudeau salute, we're prepared to make this an issue all summer long as MPs do the barbeque circuit."

"It's time for Mr. Boudria and his colleagues from all parties to come out of the shadows and embrace our principles of simplicity, transparency and fairness - which we've articulated for a decade - for MP compensation," concluded Robinson. "Ending the convoluted layering of allowances, having fully taxable salaries and implementing a matching dollar for dollar group RRSP pension scheme are the essential elements of a revamped MP compensation plan. Sadly, the political will to make these changes has given way to cowardice, greed and secrecy."