The premier is defending MPP severance packages.

Dalton McGuinty says the current pay out is better than when the system changed in 1996. He says under the old pension play, he would receive $70,000 a year after he retired, noting if he lived another 25 years that would amount to $3.7 million in taxpayer money.

McGuinty says now, he will only get around $300,000. He calls it a healthy development.

PC House Leader Jim Wilson agrees with the premier, calling this a better deal for taxpayers. He says since Queen's Park is the only legislature in Canada that doesn't have pensions.

NDP MPP Peter Tabuns says it's reasonable that people who take the risk to live a public life have a severance package.