FED: MPs’ Pension Trough Day Greeted By 75 Pink Pigs

OTTAWA: Today the Canadian Taxpayers Federation (CTF) “decorated” the lawn of Parliament Hill with 75 pink plastic pigs to highlight the number of MPs who will become pension-eligible on June 28th. The CTF also renewed its call for Parliament to reform the gold-plated MP pension plan, bringing it into line with private sector pension plans.

The CTF also released pension estimates for each of the 75 MPs, including annual pension entitlement (in today’s dollars) as well as potential lifetime earnings.

“MPs enjoy by far the most lavish pension plan in Canada. The MP pension-hogs need to get their snouts out of the trough and lead by example by reforming the plan,” said CTF Federal Director Kevin Gaudet.

In the media:

MPs board gravy train (Ottawa Sun, June 15, 2010)

Parliament Hill or Animal House (CBC, June 15, 2010)

CTV video on CTF Pig Brigade (CTV News, June 15, 2010)

Global video on CTF pigs on Parliament Hill (Global National, June 15, 2010)

MPs elected in the June 28, 2004 General Election will have served the minimum six-years necessary to qualify for the lavish pension which may begin at the age of 55. Most pension plans in the private sector - where there are any - match $1 for $1 dollar. For every dollar contributed to the MPs’ pension plan, it is topped up with $4.50 of taxpayer money. Further, most private sector pension plans are “defined-contribution” whereas MP and most other public sector pension plans are the more lavish “defined-benefit” pension plans.

Annual MP pension amounts are determined by a formula awarding 3 per cent of an MP’s best five-years of earnings for each year of service. Additional positions (such as leaders, ministers and committee chairs) receive an increased percentage in proportion to their salary. Even upon leaving Parliament, MP pension payments continue to increase based on a formula averaging 3.3 per cent every year.

Class of ‘04 pensions vary from a ‘low’ of $32,313 to as much as $44,135 per year. The amount an MP is eligible to collect continues to increase the longer they serve. Lifetime estimates range from $172,587 to $1,195,273. If the entire Class of ’04 retired on December 31, the CTF estimates that they would collect more than $59.9 million, using a life expectancy of 75-years.

Surrounded by a herd of 75 ornamental pigs on Parliament Hill, CTF Federal Director Kevin Gaudet denounced the pension plan, “MPs enjoy the most generous retirement package in Canada. For only six-years work, MPs can collect on average $788,000 in pension payouts over their lifetime, a figure that continues to grow at an astounding rate the longer they sit in Parliament. Pension reform in Canada should start at the top with MP pension reform.”

The CTF has been a long-standing opponent of “gold-plated” MP pension plans, garnering front-page national media attention in 1995 when it similarly decorated Parliament Hill with ornamental pigs.

Read backgrounder here.

By: Kevin Gaudet
Posted: June 15, 2010
Topic: Federal

Contact the regional director Gregory Thomas for further information.

Type: News Releases

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Comments

Thu, 2010-06-17 09:32 — An Anonymous Taxpayer

W.S.I.B. pension reduction

My W.S.I.B. pension was reduced by the same amount I received after applying for the Federal OAS in 1996, an annual figure of + or - $4000.oo. This has put me under financial stress ever since and now with the looming HST it will be even harder to make ends meet. I am aware that we are dealing with two entities, Federal and Provincial, but why doesn't the Federal government have legislation to prevent the Provinces from reducing the Provincial pay outs. I don't see it as double dipping and believe W.S.I.B. in Ontario is crossing a line which they should have no access to should we have the legislation to prevent it.

Let's face it W.S..I.B. are famous for being cheap skates but this goes too far. As an injured worker they have effectively lowered the percentage award granted in 1986 and let's not get onto the financial awards their CEO's get annually and the wage scale enjoyed by the mucky mucks in that pristine institution.

Ron Lehman, Orangeville, ON.

Wed, 2010-06-16 11:28 — An Anonymous Taxpayer

Nortel Pensioners

I think rather than pink pigs, the association should have invited Nortel pensioners to protest on Parliament Hill. We did so last year, so, we have the experience. How is it that a Nortel pensioner with 35 years of paid time into a pension fund is now in jeopardy of losing that pension? Never, ever, did we expect to be on Parliament Hill for a protest. It sure felt different from when we were there on Canada Day. It will never be the same again. Nortel pensioners are being faced with losing their pension at a vulnerable time in there life, older, more demands on the health care system and what toll will this take on us?

What is the Harper government doing about this dilemna?

Marcel and Barb Simard

Kingston

Tue, 2010-06-15 18:34 — An Anonymous Taxpayer

Loved it.

I'm a CTF member from Moncton, NB, who happened to be in Ottawa today and saw the pigs being set up. I love the symbolism, and touch of humor that you bring to a serious problem. Keep up the good work.

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