Taxpayers on the hook for $115 million for Outgoing MP Pensions Tiffany

Lik

http://www.vancouversun.com/news ... /4721574/story.html

Outgoing B.C. MP pensions pay out big money
Taxpayers on the hook for $115 million for 113 members
By Tiffany Crawford, Vancouver Sun May 4, 2011 5:40 AM

VANCOUVER - Three departing B.C. MPs will collect more than $3 million apiece in pensions by the time they’re 80, part of the huge cost taxpayers will bear for Monday’s high-turnover election, says the Canadian Taxpayers Federation.

The payouts to the three MPs, calculated by the federation based on age, salaries and number of years in the House of Commons, are among the highest in the country.

The federation says that with 113 MPs, including 11 from B.C., either defeated or retiring, Monday’s election will be one of the most expensive in recent years in terms of payouts.

Data collected by the federation show departing MPs will collect $4.9 million in pension payouts in their first year, with another $4.3 million issued in severance cheques.

And by the time those MPs reach age 80, taxpayers will have spent a whopping $115 million.

Five of those MPs, including three from B.C., will have earned more than $3 million by the time they turn 80.

Retiring Liberal MP Keith Martin, 51, (Esquimalt-Juan de Fuca) will receive the highest amount overall, at $3.9 million.

He’s followed by Conservatives Jay Hill, 58, (Prince George-Peace River), and Chuck Strahl, 54, (Chilliwack-Fraser Canyon), each to collect $3.3 million.

Conservative Gary Lunn, 54, who lost the battle in Saanich-Gulf Islands to Green party leader Elizabeth May, is close behind at $2.2 million, while departing B.C. Interior Tories Jim Abbott, 68, (Kootenay-Columbia) and Stockwell Day, 61, (Okanagan-Coquihalla) each will receive $1.6 million.

Conservative John Cummins, 68, who retired in Delta-Richmond East, will collect $1.3 million.

“Even though losing an election can be hard, MPs should find a nice soft landing with their golden parachute,” said Derek Fildebrandt, national research director for the federation.

Fildebrandt said politicians do not make public their pension amounts, so the federation calculates how much they’ll receive based on salaries, age and years of service.

“They do not want us to know how much they make,” said Fildebrandt, “So we make it our business to make sure the taxpayer knows.”

Defeated or retiring MPs are eligible to collect a fully indexed pension at age 55 if they have served at least six years in the House.

Those who have not served the minimum years and receive no pension collect a severance equal to 50 per cent of their total salary.

Lump sum severance payments range from a low of $78,866 to a high of $116,624, the amount defeated Liberal leader Michael Ignatieff will receive.

Read more: http://www.vancouversun.com/news ... .html#ixzz1LP19LsRB

Lik

Politicians and their golden parachutes are too ridiculously high. According to the Vancouver Sun news article:

The federation argues the current pension plan, which requires taxpayers to pay $4 for every $1 contributed by an MP, is too steep.

Most jobs don't even offer any sort of pension packages nowadays. Even for the ones that do (usually provincial or government positions, which are generally lower paid than comparable jobs in the industry, but have far higher job security), pension contribution are usually matched by the employer dollar-for-dollar only.

If there are any parties that supports politician pension reform, I will most gladly give them my vote, regardless of where on the political spectrum they are on.

-Lik