- Axworthy Scores Second Largest Pension Bonanza -

Pension payouts

Severance payouts

WINNIPEG: Canadian taxpayers are on the hook for a minimum of $19 million in severance and MP pension payouts following the last federal election. The Canadian Taxpayers Federation (CTF) today released a list of projected MP pension and severance payouts for defeated and retiring MPs.

Thirty-two retiring or defeating MPs will collect over $18.8 million in future pension payments and another 17 defeated or retiring MPs will pocket over $269,000 in severance payouts.

"The cost of government is staggering," noted CTF provincial director Victor Vrsnik. "The real cost of the federal election was much more than $200 million. Once an estimated $33 million in election refunds to the political parties and individual candidates is factored in, plus this bill of $19 million in pensions and severance, we're well over the $250 million marker."

The biggest pension winners include former independent MP John Nunziata at $2.1 million in future benefits, followed closely by long-time Manitoba Liberal Cabinet Minister Lloyd Axworthy at $1.5 million. Other Manitoba pensioners include former Liberal MP David Iftody and former Independent MP Jake Hoeppner, who will walk away with a $703,099 and a $245,363 pensions respectively.

Defeated or retiring MPs who have not served for six consecutive years are eligible for a minimum severance payment equal to one month of the annual MPs salary for each year served. MPs who have served six years and are members of the MP pension plan qualify for an annual pension at age 55 equal to 4% of their annual average income earned as an MP multiplied by their years of elected service and indexed for inflation.

"Fear not for retiring MPs. Most of them will receive benefits from the second richest public service pension plan in the country. Only federal judges do better," added Vrsnik.

The CTF does not oppose the principle of a pension plan for MPs. However, it has long advocated for a matching dollar-for-dollar defined contribution arrangement as opposed to the current defined benefit plan where taxpayers contribute almost $4.00 for each dollar an MP contributes.