• Pension payouts for MLAs are not connected to contributions
• Ashton to collect $86k annually, Briese $15k, Chomiak $64K and Dewar $54K.
• MLAs qualify for severance payments of up to one year’s salary

 REGINA, SK: The Canadian Taxpayers Federation (CTF) is calling on newly elected Manitoba MLAs to reform their own pension plan. Currently, MLAs have a defined benefit pension plan that pays out specific amounts regardless of the amount they actually contribute.

“Manitobans who diligently contribute to their own RRSPs and manage their investments deserve to have MLAs that do the same,” said Todd MacKay, Prairie Director for the CTF. “MLAs should receive what they put in, rather than leaving taxpayers on the hook if their pension fund comes up short.”

MLAs contribute just 7 per cent of their salary and are then eligible to receive set payments depending on their income and years of service. For example:

• NDP MLA Steve Ashton was elected in 1981, served in cabinet, and lost his seat. The CTF estimates he’s eligible for $86,000 in pension per year for a total of $2.5 million to age 90.
• Progressive Conservative MLA Stuart Briese was elected in 2007 and did not run in the recent election. The CTF estimates he’s eligible for $15,000 in pension per year for a total of $299,000 to age 90.
• NDP MLA Dave Chomiak was elected in 1990, served in cabinet, and lost his seat. The CTF estimates he’s eligible for $64,000 in pension per year for a total of $1.7 million to age 90.
• NDP MLA Greg Dewar was elected in 1990, served as whip and in cabinet, and lost his seat. The CTF estimates he’s eligible for $54,000 in pension per year for a total of $1.6 million to age 90.

“MLAs’ pensions should be like the plans the overwhelming majority of the rest of us have and depend on the amount they actually contribute,” said MacKay. “Defined contribution RRSP-style plans are a much more reasonable system.”

MLAs also qualify for generous severance payouts whether they retire or fail to get re-elected with departing MLAs getting a minimum of $23,256 and a maximum of $93,025 depending on the number of years served.

The CTF is also hopeful the next Speaker of the Manitoba Legislative Assembly will release the MLA pension plan financial reports to the public so that taxpayers will know if they are on the hook for unfunded pension liabilities.