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Quitters Big Winners in Severance Jackpot

Author: Maureen Bader 2009/04/20
  • Full eligibility puts taxpayers on hook for more than $127,000 per MLA.
  • Taxpayers to fund $1.5-million severance for 12 MLAs not running on May 12.
  • A changeover of 41 MLAs, as in the 2005 election, could create a payout of $5.2-million.

VANCOUVER: The Canadian Taxpayers Federation (CTF) uncovered today that MLAs who quit, retire or are defeated in the May 12 election are eligible to pocket 15 months of full salary and benefits, no matter how long they served. This bonanza came out of the Report of the Independent Commission to Review MLA Compensation that extended severance to quitters, increased the minimum payout, and removed time limits so that even one-term MLAs can get assistance for 15 months. 

"B.C. MLAs happily accepted a dole program that rewards quitters and could pay more than a full year of salary and benefits for just four years of service," said Maureen Bader, BC Director, CTF. "With MLA base salaries shooting up to $101,859 per year on April 1, this handout could surpass $5-million in this election alone. B.C. MLAs have hit the jackpot." 

Under the previous legislation, quitters received no severance, the program had a two-month minimum and paid-out one month of salary per year of service. A one-term MLA could get up to four months of salary. The new program however, has a four-month minimum and benefits are no longer based on the length of time served. That means  MLAs, even quitters, can get up to 15 months of severance with full benefits even after serving for only four years. 

"Taxpayers worried about their own jobs can only dream about the over-the-top benefits MLAs jumped on board for," continued Bader. "If a private sector employee quits or is fired with cause, which is what being defeated is, they don't get a severance payment. The same should hold for MLAs." 

If an individual MLA gets a job before the end of the 15-month period, the MLA must inform the legislature so that payments are terminated -- the legislature has no process in place to check up on MLAs. Also, if that job has a salary below $101,859, the taxpayer is on-the-hook for the difference. In addition, if the MLA quits or is fired from that job before the end of the 15-month period, the MLA goes back onto the government dole for any months remaining. 

"This pocket-lining exercise shows how MLAs feast on pork," said Bader. "The severance jackpot must end." 


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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