Pension & severance your local MP entitled to...like you won't believe!!!
Former Bloc leader Gilles Duceppe, 63
$140,765 per year
Former Toronto Liberal MP Joe Volpe, 63
$120, 392 per year
Former Liberal MP Ujjal Dosanjh
$40,197 per year from federal government
$35,000 per year from BC government
Former Liberal leader Michael Ignatieff
$ ??? per year
Those pensions for retired/defeated MPs are NOT small amounts.
For ordinary Canadian retirees, the average annual retiree household income is only $42,000!!! This is another reason why political position, especially prime minister, is a lucrative career. While elected, the salary of MP is 2 to 4 times higher than national average annual income; while retired, the pension and severance packages are very generous and ensure worry-free retirement.
MPs who either lost or didn’t run line up for ‘golden parachute’ from Ottawa
If you’re the type of person who feels sorry for losers, you may want to check your emotions over the federal MPs who lost their jobs in Monday’s election.
Canada has a very generous retirement package for its Members of Parliament, virtually unmatched in the private sector unless of course you’re the CEO of a big bank.
More than 100 MPs, including separatists, will get millions in pensions, the Toronto Star reports.
For example, former Bloc leader Gilles Duceppe, 63, who advocated for the destruction of Canada, will get $140,765 per year, while former Toronto Liberal MP Joe Volpe, also 63, will pull in $120, 392 for his 23 years of service.
Sweet deal? You be the judge.
Canadian taxpayers are on the hook for $4.9 million in pension payments this year alone for the 113 MPs who either lost or didn’t run again, the Canadian Taxpayers Federation states.
Another $4.3 million will be paid out in severance, according to the federation.
“While many MPs went down to defeat (Monday), most are still big winners,” said CTF national research director Derek Fildebrandt. “Even though losing an election can be hard, MPs should find a nice soft landing with their ‘golden parachute.'”
Unlike the private sector where most pensions are defined-contributions, or RRSP-style plans, former MPs receive the same guaranteed payout regardless of how the market performs.
Old-fashioned savings for retirement aren’t required.
The federation isn’t opposed to MPs receiving benefits, but it wants pensions for former politicians similar to private-sector ones. Those supporting such golden handshakes argue higher pension benefits are needed to attract better quality candidates to public service.
And, before we end the pension story, there are always the inevitable double-dippers.
Defeated Liberal MP Ujjal Dosanjh will receive $40,197 from the federal government and another annual cheque from British Columbia for $35,000, where he served almost a decade in provincial politics, including a one-year stint as premier.
Dosanjh told the Toronto Star he was making $250,000 a year as a lawyer before entering politics for a $61,000 annual salary.
“You don’t go into politics to get rich,” he said.
Pensions for Members of House of Commons
The pension plan for Members was first established in 1952. At that time, Prime Minister Louis St. Laurent expressed concern about the reluctance of some people to run for a seat in the House of Commons because of their belief that long years spent in public service would not allow them to provide adequately for their later years. The Prime Minister believed th at the establishment of a pension plan would strengthen the parliamentary institution and attract the right kind of person to public service. Under the Members of Parliament Retiring Allowances Act, a retiring allowance (pension) is payable to former Members who have contributed to the pension plan for a minimum of six years and who have attained age 55. Should a Member retire with less than six years of service, the Member receives a withdrawal allowance in a single payment.
A former Member who is not entitled to a pension and who was a Member on the day of dissolution, but is not re-elected or did not seek re-election, is entitled to a severance allowance equal to 50% of the total of the basic annual sessional indemnity and any annual salary payable to Members occupying certain offices (such as that of a Minister, House Leader, Whip, or Parliamentary Secretary). The severance allowance is also payable to a Member who is not eligible for a pension and who resigned during an election period, following the dissolution of Parliament, or who resigned during a Parliament because of permanent illness or disability which in the opinion of the Speaker prevented the Member from performing his or her duties.
The provisions of the Members of Parliament Retiring Allowance Act continue to apply between the day of dissolution and election day. Contributions cease as of the day of the election for Members who are not re-elected.