Changes to MP Pensions Will Save Us Money
Changes to the pension plan for federal MPs will eventually see them putting nearly four times as much of their own
money towards retirement than they currently do.
Treasury Board President Tony Clement says MP contributions will jump to about $39,000 from the present level of about $11,000.
MPs will also have to wait until 65 to retire in order to collect a full pension, rather than the current retirement age of 55.
The changes are part of the government's latest mammoth omnibus budget bill, introduced today in the House of Commons.
The opposition wants the pension provisions hived off into a separate bill, but Finance Minister Jim Flaherty rejects that idea.
Flaherty said these measures were clearly outlined in the budget he brought in last March.
``That's why it's in the second budget bill,'' Flaherty said.
``I hear the opposition say that but it's really quite self-serving and it shows a lack of, it seems to me, a lack of diligence in actually studying what's in the budget. There are no surprises here.''
Opposition critics, who engineered a 24-hour voting marathon on the original omnibus bill as a form of protest in the spring
aren't so sure about the surprises and are poring over the legislation.
Flaherty said the changes are going to cost him money personally, although he says he doesn't know how much.
``I'm not in this for the money,'' he said.
Clement says the changes will move public service and MP pension contributions to a 50-50 split, similar to private sector plans.
``This is doing the right thing,'' he said.
He says the changes will save taxpayers $2.6 billion over five years.