Alberta's MLAs will get their annual raise tomorrow, based on Statistics Canada's average weekly earnings index. These annual increases to the MLAs' salary and tax-free allowance are transparent, fair, and fully deserving of Albertans' support.

Unfortunately, many aspects of MLA compensation do not yet conform to principles of simplicity, transparency, accountability and fairness.

For example, when you log on to the Legislative Assembly's web site (www.assembly.ab.ca) and click on MLA remuneration, you won't see any mention of the extravagant severance packages which MLAs voted themselves in 2001. Nor will the main page tell you that MLAs receive an "RSP allowance" of $9,000 per year in addition to their salary and their tax-free allowance. This failure to mention the MLAs' RSP allowance and large severance pay packages on the main web page under "MLA remuneration" is a sad example of a lack of transparency.

To the average Alberta taxpayer, it's not simple to understand how much Alberta MLAs earn. They get a salary of $43,740, plus an RSP allowance of $9,000, plus a tax-free allowance of $21,870. An MLA's annual income from these three sources totals $74,610. But considering that no tax is paid on $21,870, the MLA's after-tax pay is close to that of an Albertan earning $82,000 per year. That puts MLAs in the top 10% of income-earners, which is reasonable and fair.

While earning an annual salary equivalent to $82,000, MLAs can look forward to huge severance pay packages upon retirement or defeat. MLA severance pay is based on three months' salary for every year in office, calculated on the highest-earning years as premier, opposition leader, speaker, minister, or committee chair. Ralph Klein will get $670,000 if he retires in 2008, and many ministers will each receive over $600,000 if they retire in 2008.

The 28 MLAs who retired or were defeated in the provincial election four months ago will receive $6.1 million in severance pay. Lucky recipients like Pat Nelson ($478,000), Murray Smith ($356,000), Mark Hlady ($274,000), Marlene Graham ($174,000) and Karen Kryczka ($164,000) will tell you that MLAs don't have a pension plan. What they won't tell you is that the Tories themselves loudly and publicly abolished the MLA pension plan, and used this to beat the Liberals in the 1993 provincial election. It is hypocritical for MLAs to whine about the absence of a pension plan which they themselves chose to abolish.

The Canadian Taxpayers Federation continues to ask the Alberta government to adopt principles of simplicity, transparency, accountability and fairness in MLA compensation.

Simplicity would mean paying Alberta MLAs one straight salary, as is done in B.C., Manitoba and Ontario. A Manitoba MLA earns $65,535 and pays tax on it like any other Manitoban earning $65,535, without a tax-free allowance. An Ontario Member of Provincial Parliament pays tax on her $85,240 salary like other Ontarians earning that amount. But things are not simple here in Alberta, because MLAs get their remuneration from three different sources - or four sources when you include the huge severance pay.

Transparency would mean displaying the MLAs' RSP allowance and generous severance pay on the main web page, for all taxpayers to see.

Accountability would mean public input and consultation prior to changing MLA compensation. Accountability would mean that changes to MLA compensation would not go into effect until after the next provincial election. These principles of accountability were violated in 2001, when MLAs met five months after a provincial election and voted themselves huge increases, effective immediately, without any public input or debate.

Fairness would mean bringing MLA severance packages into line with what other Albertans get. There is no job on earth which, when you quit or get fired, pays you three months' salary for every year on the job. Alberta should follow the examples of B.C., Ontario and Manitoba, which provide MLAs with one month's salary for every year in office, to a maximum of 12 months. Earning a salary equivalent to $82,000 per year is adequate and reasonable; forcing taxpayers to shell out literally millions of dollars in severance pay is not.

Until MLAs adopt these principles of simplicity, transparency, accountability, and fairness, their compensation will remain an issue.