EDMONTON: The Canadian Taxpayers Federation (CTF) today released calculations showing that proposed new MLA severance pay could cost Alberta taxpayers more than $17 million. Currently, MLAs who retire or are defeated receive two months' severance pay for every year served, calculated on the MLA's salary only, to a maximum of 24 months of pay, or $123,156.

Last Tuesday August 8, the all-party "Members' Services Committee" proposed increasing MLA severance packages to three months' pay for every year served after 1989, calculated on total compensation including additional pay received by the MLA as Premier, Opposition Leader, Speaker, and other positions.

The Alberta Legislature is not bound by the Committee's proposal, and has jurisdiction to accept or reverse its recommendations. The Committee also proposed increasing MLA salaries by $6,750 per year as an "RRSP allowance", adding this to the current salary of $41,052 and the tax-free allowance of $20,526.

None of the Committee's recommendations were discussed or put to voters by any of the three major parties in the provincial election, held just five months ago.

If Premier Klein approves of the proposal, his own severance pay will more than quadruple, from $123,156 to $529,680. Opposition Leader Ken Nicol can expect his severance pay to almost triple, from $123,156 to $356,112. Total severance pay for all 83 MLAs, if all retired or were defeated in 2005, would cost Alberta taxpayers $17,693,087. The 24-person cabinet alone would cost taxpayers $8,601,552 in severance pay.

"Premier Klein won the 1993 election in part by abolishing the lucrative MLA pension plan, but now it looks like he is trying to bring it back through the back door," stated CTF-Alberta director John Carpay. "Premier Klein showed real leadership in 1993 - will he now quietly go along with the recommendation of a committee "

"Alberta taxpayers don't get anywhere near three months' pay for every year of service when they lose or quit their jobs. This proposal for gold-plated severance packages is obscene, and an insult to Albertans," added Carpay.