Klein wants $502,680 severance pay
EDMONTON: If the Alberta government approves changes recommended by the all-party Member Services Committee, MLAs who retire or are defeated in 2005 stand to gain large severance packages, based on three months' pay for every year in office. The severance package will be based on the three highest-earning years of an MLA's total pay since 1989. An MLA's total pay includes the additional pay received by an MLA as Premier, Opposition Leader, Third Party Leader, Speaker, Committee Chair, Party House Leader, Party Whip, and other positions.
If the plan goes through, MLAs who retire in 2005 will receive severance pay as follows:
Premier Ralph Klein won the 1993 election in part because he scrapped the overly-generous MLA Pension Plan in place at that time. Alberta MLAs do not have a pension plan, but they earn a salary equivalent to $69,600 per year. The all-party Member Services Committee also proposes to increase the MLA salary by $6,750.
The Canadian Taxpayers Federation (CTF) is calling on the Alberta government to consult the public, and have changes go into effect only after the next provincial election. "Why didn't they talk about a 10% raise and gold-plated severance pay in the election, just five months ago " asked John Carpay, Alberta Director for the CTF. "If there are valid reasons for these increases, as Premier Klein claims, then why didn't he tell Alberta taxpayers before they voted in March "
"Premier Klein has no mandate from voters to put these changes through." added Carpay. "The average Alberta taxpayer won't receive three months' severance pay for every year worked at a job. Most Albertans earn less than $69,600 per year, and many of them still have to provide for their own pensions."
"After scoring political points by scrapping the MLA Pension Plan in 1993, this gold-plated severance package amounts to a 'back-door pension plan' on which Albertans have not been consulted. The problem here is the process. This should have been put before the taxpaying public in the election in March. Since this was not done, any changes proposed now should go into effect only after the next provincial election."
On Monday August 13 the CTF will release severance pay calculations for all 83 MLAs.
If the plan goes through, MLAs who retire in 2005 will receive severance pay as follows:
Premier Ralph Klein won the 1993 election in part because he scrapped the overly-generous MLA Pension Plan in place at that time. Alberta MLAs do not have a pension plan, but they earn a salary equivalent to $69,600 per year. The all-party Member Services Committee also proposes to increase the MLA salary by $6,750.
The Canadian Taxpayers Federation (CTF) is calling on the Alberta government to consult the public, and have changes go into effect only after the next provincial election. "Why didn't they talk about a 10% raise and gold-plated severance pay in the election, just five months ago " asked John Carpay, Alberta Director for the CTF. "If there are valid reasons for these increases, as Premier Klein claims, then why didn't he tell Alberta taxpayers before they voted in March "
"Premier Klein has no mandate from voters to put these changes through." added Carpay. "The average Alberta taxpayer won't receive three months' severance pay for every year worked at a job. Most Albertans earn less than $69,600 per year, and many of them still have to provide for their own pensions."
"After scoring political points by scrapping the MLA Pension Plan in 1993, this gold-plated severance package amounts to a 'back-door pension plan' on which Albertans have not been consulted. The problem here is the process. This should have been put before the taxpaying public in the election in March. Since this was not done, any changes proposed now should go into effect only after the next provincial election."
On Monday August 13 the CTF will release severance pay calculations for all 83 MLAs.