A long standing MP can collect a $100,000 annual pension. After just 6 years as an MP you can qualify for a $27,000 annual pension. What’s even more curious is that the pension benefits are secured by tax-payers. There are no actual investments, only a big IOU on paper which is guaranteed to grow every year. So when it comes time to funding these pensions, it comes straight out of taxpayers’ pockets.
You can read more by clicking here for the original article by Joan Bryden of The Canadian Press.
Readers of this blog know that I rarely give a loud opinion, but this is madness. Government gluttony really has to stop. It used to be that you would get a lower income in exchange for great benefits and a good pension if serving the public. Today, not only can you make more than a private sector equivalent, you get a better pension and better benefits and better job security. A friend of mine who recently joined the government was telling me how his new co-workers gave him the evil eye if he didn’t use up his sick days, even when he didn’t need to. God forbid he works past 4:30pm – he might get lynched.
I don’t want to paint with broad strokes – I know there are many public servants who work very hard and deserve what they earn – but there are enough examples of mismanagement that warrant heightened scrutiny.
Note: as a point of clarification, the MP pension scheme is different than the average public servant’s pension which is actually paid into. Thanks to Big Cajun Man for his comment to those not familiar with government pensions – the vast majority of public servants do not have the gold plated plan described for MPs above.