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MLA pay rises to $78,545 on Monday

Author: John Carpay 2002/03/25
EDMONTON: Alberta MLAs will receive their third raise in two years this Monday April 1. The salaries and tax-free allowances of the Premier, Opposition Leader, Speaker, Cabinet Ministers, and all MLAs will increase approximately 3.3% pursuant to the "average weekly earnings" index for Alberta as recorded by Statistics Canada. Alberta MLAs remain the third-highest paid in Canada, after politicians in Ontario and Quebec.

As of Monday April 1, Alberta MLA pay will rise from $76,251 to $78,545. The current $76,251 is as follows: a salary of $41,052, plus a tax-free allowance of $20,526, plus an "RSP allowance" of $6,750. The $20,526 tax-free allowance is the taxable equivalent of $28,449. The $6,750 "RSP allowance" is pegged at one half of the maximum allowable annual RSP contribution, which is determined by Ottawa. If the federal government raises the maximum RSP contribution limit, Alberta MLAs will automatically get a raise, without the matter being discussed or voted on.

MLA severance pay will also increase 3.3%, as it is based on three months' salary for every year in office, based on the MLA's three highest-paid years as Premier, Speaker, Cabinet Minister, Opposition Leader, Committee Chairman, or other position. If all 83 MLAs quit in March of 2005, Alberta taxpayers will be on the hook for over $18 million in severance pay, including $547,159 for Premier Klein; $490,485 for Speaker Ken Kowalski; $367,864 for Liberal Opposition Leader Ken Nicol; and $141,166 for ND Leader Raj Pannu.

The Canadian Taxpayers Federation (CTF) renewed its call on the government to repeal the severance pay increases approved at a quasi-secret meeting of the all-party Members' Services Committee on August 7, 2001. Notice of these meetings is limited to the posting of a sheet of paper on a bulletin board on the inside of the Legislature.

"Theoretically these meetings are open to the public, but the public has no way of knowing when and where they will take place," stated CTF-Alberta director John Carpay.

"MLAs of all three parties chose to make an issue of their compensation on August 7, 2001. This issue is not going away until MLAs repeal the obscene increases which they approved in the summer. A fair and open process, with real public input, should be put in place to determine MLA compensation," added Carpay.

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