The Canadian Taxpayers Federation (CTF) wants Manitoba MLAs elected April 19 to reform their own pensions, currently a defined benefit plan that pays out specific amounts regardless of how much they pay in.
MLAs contribute seven per cent of their salary and receive benefits specified by their income and years of service, says the CTF.
Defeated Thompson NDP candidate Steve Ashton, who served 35 years as an MLA and was a cabinet minister, may collect at much as $86,000 per year, the CTF estimates, until he reaches the age of 90, for a grand total of $2.5 million. Former Progressive Conservative MLA Stuart Briese, who was first elected in 2007 and did not run in the April 19 election, could get $15,000 per year until age 90 for a total of $290,000, the CTF estimates.
“Manitobans who diligently contribute to their own RRSPs deserve to have MLAs that do the same,” said Todd MacKay, prairie director for the CTF, in an April 21 news release. “MLAs should receive what they put in, rather than leaving taxpayers on the hook if their pension fund comes up short.”
MLAs also receive severance payouts between $23,256 and $93,025 depending on the number of years served, regardless of whether they retire from politics or run and fail to get re-elected.
“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.”
