Reform MP Pensions

After just six years of service, MPs are eligible to receive one of the richest pensions in the country, and taxpayers are paying for it. While officially taxpayers contribute $5.80 for every $1 contributed by an MP to an MP’s pension account, the true amount is actually $23.30 for every $1 contributed by the MP.

The vast majority of Canadians working in the private sector have no employer pension plan. Those few who do, normally have defined-contribution, RRSP-type plans, which at best match workers' contributions – that’s $1 for $1. Most Canadians have to save for their retirement the old-fashion way. MPs by contrast are guaranteed a steady payout regardless of how investments and the market perform.

Check out how much these MPs are taking home. In January, the CTF released a report estimating that the cost to retire the entire 41st Parliament in 2015 is at least $262 million in cumulative pensions and $15 million in severance payoffs. If every current MP were to stay in office until 2019, the CTF estimates the pension tab would soar to $436 million, with an additional $9.8 million in severance payoffs. Click here to see the calculations.

The CTF supports a pension and severance package for our outgoing Members of Parliament. But one that meets taxpayer expectation and falls within private sector norms. We feel taxpayers should match MP pension contributions dollar-for-dollar. Further, those elected officials who are convicted of crimes should have the taxpayer-funded portion of their pension revoked.

With our supporters' help, the CTF has successfully fought to bring dollar-for-dollar defined-contribution pension plans to Saskatchewan, Manitoba, and Ontario. If we’re ever going to see real pension reform for government bureaucrats, MPs are going to have to lead by example.

Use the buttons below to donate to the campaign, contact lawmakers, and sign the petition demanding pension reforms.  

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