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Taxpayers Federation calls for MLA pension reform

Author: Todd MacKay 2017/01/12

WINNIPEG, MB: The Canadian Taxpayers Federation (CTF) is calling on MLAs to reform their pension plan in recommendations presented to the Commissioner for MLA Pay, Allowances and Retirement Benefits. The CTF also recommended making the MLA pension report public and reducing MLA salaries by 5%.

“Most Manitobans depend on their own savings for retirement and the MLA retirement plan should reflect that reality,” said Todd MacKay, Prairie Director for the CTF. “Rather than a defined-benefit pension that entitles some MLAs to seven-digit payouts regardless of the amount they contribute, MLAs need to establish a retirement plan based on matching RRSP contributions.”

MLAs contribute 7% of their salary and are then eligible to receive set payments depending on their income and years of service. For example, under the current plan: former Progressive Conservative MLA Stuart Briese is entitled to an estimated lifetime MLA pension totaling $299,000 and former NDP MLA Steve Ashton is entitled to an estimated $2.5 million.

More importantly, unfunded pension liabilities are a serious issue in Manitoba. Actuarial experts project that government employee pensions will have to pay out $2.3 billion more than the amount actually in the funds. These unfunded liabilities ultimately fall on taxpayers. In 1977, Saskatchewan Premier Allan Blakeney addressed this issue by making government employee pensions defined-contribution plans that pay out only as much as is actually in the fund. Manitoba needs to implement these reforms as well.

“It will take time to reform all government employee pensions, but MLAs can take the lead by immediately reforming their own retirement plan,” said MacKay. “It is fundamentally unfair and irresponsible for MLAs to give themselves better pension plans than those available to most Manitobans.”

The CTF recommended that MLAs implement a retirement plan where they contribute up to 8% of their incomes to their own RRSPs and are then eligible for a matching government contribution. The CTF also recommended making the MLA pension report public and reducing MLA salaries by 5%. The full recommendations are available here: http://www.taxpayer.com/media/MB-MLA_Compensation_Recommendations_CTF.pdf.

For more information, please contact:

Todd MacKay – CTF Prairie Director – 306-582-7717 – [email protected]


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