- CTF Releases $19 Million List of Severance and Pension Recipients from Election 2000 -

Pension payouts

Severance payouts

OTTAWA: The Canadian Taxpayers Federation (CTF) today released a list of projected MP pension and severance payout amounts that will go to defeated and retiring MPs. Canadian taxpayers will be on the hook for a minimum of $19 million in severance and MP pension payouts. 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 this recent election to taxpayers is much more than $200 million dollars," noted CTF federal director Walter Robinson. "When one factors in an estimated $33 million in election refunds to the political parties and individual candidates, plus this bill of $19 million in pensions and severance, we're well over the $250 million marker."

Defeated or retiring MPs who have not served for six consecutive years are eligible for a severance payment equal to one month of the annual MP's salary for every 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.

"Shed no tears for defeated or 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 Robinson. "And we should remember that our calculations are based on minimum inflation projections. These benefits are indexed for inflation and can be collected starting at age 55, a full decade earlier than when most Canadians start collecting CPP."

The biggest pension winners include former independent MP John Nunziata at $2.1 million in future benefits, followed closely by long-time Liberal Cabinet Minister Lloyd Axworthy at $1.5 million, while former NDP MP Nelson Riis will pocket $1.2 million and Christine Stewart, a former environment Minister clocks in at a cool million dollars. Retiring Alliance MP Jim Hart (who opted out of the pension plan then opted back in 1998) is projected to receive future pension payments in excess of $658,000.

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.