MLA Transition Allowances 2008

EDMONTON: The Canadian Taxpayers Federation (CTF) today released the estimated "transition allowances" paid to retired or defeated MLAs following the 2008 General Election.

There were 33 retired or defeated MLAs after the March 3rd vote, 20 of which retired and 13 of which were defeated. The transition allowance payment is based on three months salary for each year served as MLA. The payments range from a low of $11,511 to defeated Liberal MLA Craig Cheffins to a high of $601,744 to retired PC MLA Mike Cardinal.

In total, taxpayers will pay an estimated $8,126,106 in transition allowances.

"We have to decide whether this is some sort of severance payment or a form of retirement payment," stated CTF-Alberta director Scott Hennig. "But, either way, just like the one-third tax-free portion of their salary, the transition allowance is a double-standard."

"Few workers get more than two-weeks severance for each year of employment, let alone three months, and no one gets paid severance for quiting or retiring," said Hennig. "Conversely, if this is intended to be a retirement payment, then taxpayers shouldn't be funding MLA RRSP contributions as well."

MLAs are currently provided with a RRSP allowance equal to 50 percent of the maximum RRSP contribution limit. (Limit is $20,000 for 2008)

The current transition allowance formula was passed by the all-party Member Services Committee shortly after the 2001 election.

Defeated and retired MLAs under the age of 70 are also eligible to stay on the Members' Extended Benefits Plan, with taxpayers continuing to pick a portion of the premiums for up to five years.

CTF estimated calculations for each of the 32 retired or defeated MLAs can be found on-line here: MLA Transition Allowances 2008.


Alberta Election 2008

Throughout the 2008 Alberta Provincial election, the CTF provided regular updates which are listed below. This included our "Spend-o-meter" which provided an update of the spending promises:

• All parties respond to CTF questionnaire
• A present for our next premier
• Costed out platforms welcomed by CTF
• PC Party responds to CTF's platform costing request
• Provincial election spend-o-thon
• Clearing the air on health care premiums
• Healthcare Premium Victory
• Pre-election spending spree tops $1.3 billion
• Spend-o-Meter (Jan 31, 2008)
• Spend-o-Meter (Feb 1, 2008)