HALIFAX, NS: The Canadian Taxpayers Federation (CTF) is pointing out that starting (October 1st), 27 Nova Scotia MLAs can cash in on a pension for life, earned by serving just two years as an MLA.
Changes made to the MLA pensions in the spring of 2014 reduced the amount of time an MLA needs to work before being eligible for a pension. Previously, MLAs had to serve for five years and two elections. Now an MLA just needs just 24 months of service to quality (serving for one day in that month qualifies them for the entire month). This means all newly elected MLAs from the 2013 election are already eligible to collect a pension.
“Most Nova Scotians go to work for years and never get a pension, let alone one as rich as this,” said Kevin Lacey, Atlantic Director with the Canadian Taxpayers Federation. “There’s something perverse about a system where taxpayers with no pensions pay for these rich ones for their politicians.”
Despite two independent reviews and reforms in 2011 and 2014, MLA pensions remain a rich golden parachute. Last year, for every $1 contributed by politicians to the pension program taxpayers officially contributed $4.30. However, when you add in the taxpayer-funded “interest payments” it becomes a ratio of $18 to $1.* This ratio is down only slightly from 2010 when it was $6.79 to $1 or $22 to $1 when taxpayer funded interest is included.
In 2014-15, MLA pensions cost taxpayers $10.4 million.*
“It’s time for politicians to scrap this program once and for all. Our politicians are accepting fat pensions while asking Nova Scotians to accept cuts in services and higher taxes,” added Lacey.
48 of the 51 MLAs now qualify for a pension for life.
MLA pensions as of January 2016 are indexed to the rate of the public servants pension plan, and all payments into the pension plan are credited with 8.5 per cent interest per year.
* Calculated based on Financial Statements of Members Retiring Allowances Plan And Members Supplementary Retiring Allowances Plan
How the $18 to $1 contribution ratio is calculated HERE.
Particulars as to how much each individual MLA is entitled to as of December 31st, 2013 can be found HERE.
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