OTTAWA, ON: The Canadian Taxpayers Federation released its calculations of estimated pension or severance payments paid to the 51 members of Parliament who were either defeated in the federal election or did not seek re-election.
“Taxpayers shouldn’t feel too bad for the politicians who lost the election because they’ll be cashing big severance or pension cheques,” said Franco Terrazzano, Federal Director with the CTF. “Thanks to past pension reforms, taxpayers will not have to shoulder as much of the burden as they used to. But there’s more work to do to make politician pay affordable for taxpayers.”
Defeated or retiring MPs will collect $1.4 million in annual pension payments, reaching a cumulative total of $42 million by age 90. In addition, $3.3 million in severance cheques will be issued to some former MPs.
Four former MPs will gather more than $100,000-plus a year in pension income. These pension payments will cost more than $13.6 million if these MPs continue to collect the pension to age 90. The four former MPs include:
Members of parliament received two pay raises during the pandemic, ranging from an extra $6,900 for a backbench MP to $13,800 for the prime minister.
The CTF is calling for politician pay and pension reform, in light of the $1-trillion federal debt. Reforms should include transitioning the MP pension plan to a matching RRSP-style pension, ending severance payments and reversing the pandemic pay hikes.
“There’s one trillion reasons why politician pay and benefits need to be more affordable,” said Terrazzano. “Taxpayers need to see leadership at the top and that means reforming pensions and reversing the pandemic pay raises that MPs pocketed.”
The pension and severance calculations for each defeated or retired MP can be found here.