OTTAWA, ON: The Canadian Taxpayers Federation today released its calculations of estimated pension and severance payments paid to the 94 MPs who were either defeated or did not seek re-election in the Oct. 21 general election.
Defeated and retiring MPs will collect $3 million in annual pension payments, reaching a cumulative total of $104 million by age 90. In addition, another $5.8 million in severance cheques will be issued to former MPs. The pension and severance calculations for individual MPs are available here.
“Losing an election can be tough, but most MPs will have a soft financial landing,” said CTF Federal Director Aaron Wudrick. “The good news is that thanks to pension reforms, taxpayers will not have to shoulder as much of the burden as they used to.”
Previously, taxpayers contributed approximately $17 for every $1 contributed by an MP or Senator towards their own pension. Since 2016, it has been gradually shifting towards to a ratio of $1.60 in taxpayer contributions for every $1 put in by an MP or Senator.
Seven former MPs will gather more than $100,000-plus a year in pension income including outgoing Liberal cabinet minister Ralph Goodale ($176,000) and former Conservative cabinet minister Rob Nicholson ($158,000). In terms of lifetime estimated benefits to age 90, 12 MPs are projected to collect more than $3 million each.
“MP pension reform should serve as an example for broader public sector pension reform,” said Wudrick. “We encourage the Trudeau government to take the necessary steps to ensure government employee pensions are more in line with what the vast majority of Canadians working in the private sector expect to receive.”
The pension and severance calculations for each defeated or retired MP can be found HERE.