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Gold Plated Member of Parliament Pension Plans

 

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.

Related posts:

  1. The Individual Pension Plan (IPP) – Convert your RRSP to a Defined Benefit Pension Plan
  2. Canada Pension Plan: Good for another 75 years…
  3. The Pooled Registered Pension Plan – Oops

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About Preet

Preet Banerjee is a Canadian personal finance commentator. He is a television host for The Oprah Winfrey Network, a Money Expert for The W Network, a personal finance columnist for The Globe and Mail, and a regular panellist on CBC's The National with Peter Mansbridge. He also appears frequently as a guest commentator on a variety of other programs and media.

Comments

  1. Public Servants (those in the union) pay for their pension, the fact that the MPs (even the ones who want to separate from Canada?) get pensions that are truly obscene.

  2. Mike says:

    I doubt any of his co-workers would know if he worked late. They will be long gone. ;)

  3. Bryan says:

    This makes my stomach turn, thanks for publishing this, it needs all the publicity it can get. Please everyone, spread it around.

  4. Alex says:

    So what else is new? Would you refuse free money? Doesn’t really matter who you elect.

  5. Brian says:

    @Alex: Information like this could with enough support affect change in government compensation. Good on Preet for bringing it to light, it is OUR money after all.

  6. dlm says:

    Have you ever seen a politician who was not wealthy by the time they leave? They shouldn’t vote on their own pay and they shouldn’t get more than the average Canadian. And yes the average Canadian could do the job as well if not better.

  7. dj says:

    Do you know how many MP’s got voted in because they said “Pension Reform for MP”. Even Danny Mc Taiban back down when Jean Cash Cow give him a back door in.

  8. Great pieces of information! I will also share them to all my friends.
    thank you.

  9. Kevin says:

    Wow, $100,000 per year! Sign me up!

    Actually, I wouldn’t want to sign up for this knowing that others are forced to pay for it. There are just so many things wrong with this…. It seems that in any society, the parasites will keep growing and feeding off the rest of society, if left unchecked. There are some great websites out there that have written tons about this; search for “Let a thousand nations bloom” or “Campaign for liberty”.

    So, when does the gluttony stop? Certainly they’re not going to vote down their own salaries or pensions.