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Saturday, January 21, 2012

MP pension scam

The federal Tories have promised to reform the MP pension plan, and such reform cannot come too soon to suit me. The current plan amounts to little more than a scam if recent reports can be believed—and I’m convinced they are believable, coming as they do from The Taxpayers Federation and Lorne Gunter of the National Post.

CAUTION: Readers may want to hold their noses before continuing.

No MP could get elected in any riding in Canada if he or she ran on a platform that stipulated a tax-funded pension for MPs based on the following formula: for every dollar an MP contributes, working Canadians must contribute $23.30. Just imagine the reception such a candidate would receive at virtually any voter’s door in the land.

Yet, the Canadian Taxpayers Federation calculates that is precisely the case with the current MP pension plan. The federal government officially claims the taxpayer-to-MP ratio is much lower at $5.80-to-$1.00, but, apparently, this is not the case. Here’s the explanation offered by the CTF:

The hidden contributions are due to the government adding “interest” into the MP pension accounts at a rate of 10.4 per cent per year—even though MP pension funds are not invested into the market like other pension funds (e.g. Ontario Teachers’ Pension Fund).

According to the CTF, taxpayer-funded “interest” the government pays into the MP pensions results in an incredible $248,668 each year to each MP’s pension fund, while each backbench MPs may contribute a paltry $10,990 a year. Is it not a shameful scam for MPs to receive annual payments towards their retirement of nearly a quarter of a million dollars when their base salary $157,000?

As astonishing is the fact MPs are eligible to receive pensions of 50 per cent of their $157,000-a-year pay beginning at age 55, provided they serve at least six years in Parliament.

One reads about this sort of rip-off in banana republics run by dictators, but here in Canada…?

Read more from the National Post here.

© 2012 Russell G. Campbell

4 comments — This is a moderated blog and comments will appear when approved. Please don’t resubmit if your comment doesn’t appear immediately, and please do not post material that is obscene, harassing, defamatory, or otherwise objectionable.

  1. Seeing as the gold plated pension plan was imposed by jean Chretin, then it should be of no surprise that it's a complete scam and a rip off of the taxpayer.

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  2. Why do you think Jack and Olivia changed the channels by crusading for Seniors and the Wage-Gap.
    I knew Olivia was just as guity for gorging at the Public trough and collecting 2 MP salaries as they pretended to feel the pain of the lowly peons and people eating cat food to survive.
    The Socialists lovwe to demand equality and Justice, but lets not foreget what Svend Robinson did once he was about to face a Judge in a Courtroom. Svend was caught stealing a $60'000.00 item and blamed it on Homophobia, then he used his Status and Wealth to get probation which no Black Youth could ever get for the same crime.

    Nice Svend, but to make it worse ,Jack layton welcomed this convicted felon back into the NDP to run in B.C. and belly-up to the trough .
    Svend lost and then moved to Paris to work for a ECO-Fascist charity but must now face the wrath of Allah's warriors in france who attack gays and hate same-gender marriage.

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  3. Deb Gray and Stockwell Day made a living complaining about gold-plated MP pensions. And then they both dived into the trough that they complained about. Heck, Stockwell gets a fat Alberta MLA pension and a big double dip with the MP pension. There is no incentive for any MP to actually change the pension scheme.

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    Replies
    1. Let our government lead by example and not be able toreceive their pensions till 67.
      Please MP Findley quit comparing us to Greece and using phony sacre tactics to push your OAS position

      Delete

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