CALGARY, AB: The Canadian Taxpayers Federation (CTF) reacted with mixed feelings toward the decisions of the Member Services Committee today. The Committee unanimously heeded calls by the CTF to reject a ‘targeted-benefit’ pension plan which would leave taxpayers open to future bailouts. Following this however, the Committee voted to adopt a doubled RRSP with no MLA contributions and a new severance package equal to one month for every year’s service.

CTF Alberta Director, Derek Fildebrandt measured up the Committee’s actions, “The most important thing about today’s meeting is that MLAs of all parties rejected a risky, targeted-benefit pension plan. That type of pension plan could have left future taxpayers on the hook to bailout shortfalls in that plan.”

PC MLA Steve Young motioned to adopt a doubled RRSP allowance with a taxpayer contribution of $23,000 a year with no MLA contribution, coupled with a new severance package. The Committee’s recommendations will now be debated by the legislature as a whole. 

“We won the battle against a potentially unfunded targeted benefit pension plan, but out of nowhere we are confronted with an overly generous RRSP allowance paid for 100 per cent by taxpayers. An RRSP for MLAs is a fair and safe way to plan for their retirement, but it is only fair that contributions be matched dollar-for-dollar by MLAs. MLAs need to have some skin in the game when it comes to their own pensions,” said Fildebrandt.

“Premier Redford pledged during the election that she would scrap MLA transition allowances, full stop. Not rename or reduce them, but eliminate them. If she intends to keep her pledge, then she needs to reject the Committee’s request to reinstitute them in another form, albeit a more modest one,” continued Fildebrandt.

Fildebrandt concluded, “It is a win for taxpayers that a targeted-benefit pension was rejected, but we still need to beat back the play of some MLAs to give themselves an overly generous RRSP, and go back on their pledge to scrap transition allowances.”

Wildrose leader Danielle Smith, Wildrose MLA Heather Forsyth and NDP leader Brian Mason were the only MLAs to vote against the proposal. Mason was also the only MLA to vote against the tripling of the MLA transition allowance back in 2001.