After just six years of service, MPs are eligible to receive one of the richest pensions in the country, and taxpayers are paying for it. Taxpayers contribute $24.36 for every $1 contributed by an MP into an MP's pension account.
How is that possible?
Unlike normal pension plans, the MP pension fund is not actually invested into the market. By cabinet order, the fund is simply credited with 10.4% annual interest, courtesy of taxpayers. So generous is the MP Pension Plan that it is not even legal under the Income Tax Act which mandates that no registered pension plan can exceed an accrual rate of 2% of salary for each year worked. (MPs have rigged up two funds to get around the law).
In 2010-2011, all sitting MPs and Senators contributed a combined $4.5 million towards their pension fund. Between official contributions and 'interest' payments, taxpayers put in $110.7 million.
This needs to change. Visit www.taxpayer.com to sign the petition and help us put an end to MP's gold plated pensions.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey