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Harper should start with MPs to reform Canadian pensions

Prime Minister Harper must reform MPs pensions first if he has any hope of looking at anyone elseB次元官网网址檚.

It might be understandable if a number of Canadians didnB次元官网网址檛 appreciate talking recently about reforming public sector pensions and Old Age Security (OAS) social assistance payments. After all, nobody likes the idea of their retirement plans changing, whether it is by way of a downturn in the market or a change in a government policy.

This is likely especially true recently, with Mr. HarperB次元官网网址檚 musings coming on the heels of two reports on MP pensions, one by the not-for-profit Canadian Taxpayers Federation and the other from the esteemed C.D. Howe Institute. What these reports made abundantly clear: Prime Minister Harper must reform MPs pensions first, if he has any hope of looking at anyone elseB次元官网网址檚.

Ultimately, Harper is quite right to tackle CanadaB次元官网网址檚 demographic dilemma: the tsunami of aging baby boomers does indeed threaten to swamp the national safety net. A bit more than $6,000 annually for OAS payments might not seem like a whole lot of money, but multiply it by 4.7 million retired Canadians, add in the guaranteed income supplement, spousal and widow allowances and survivor benefits, and youB次元官网网址檙e looking at $36 billion of taxpayer cash.

By 2030, if something isnB次元官网网址檛 done, Old Age Security payments are expected to balloon from $36 billion to $108 billion B次元官网网址 thatB次元官网网址檚 quite a chunk of change when you consider that the entire federal budget is about $274 billion this year.

So how does the Prime Minister start tightening the tap on entitlements for the elderly, when taxpayers contributed $23.30 for every dollar put into the parliamentary pension plan by MPs? Taxpayers paid $102.7 million last year, while MPs and senators chipped in $4.4 million. How do you explain to someone scraping for their retirement that Canada canB次元官网网址檛 afford $508 a month for a 65-year-old, when defeated 60-year-old backbench MP Yasmin Ratansi got $2,758 a month after just seven years on the job? Or the defeated Bloc Quebecois leader, 64-year-old Gilles Duceppe and his $11,730 monthly pension - the gift of a grateful nation for 21 years of devoted service?

Even Mr. Harper himself is in line for an annual pension payout of $223,517 if he packs it in at the end of his current term. Of course, the PM will only be 55 years old by then, and presumably, capable of doing something else to make ends meet. But if Harper were to find himself retired with no other means of support, $223,517 does buy a lot of cat food and kerosene to make it through a chilly Calgary winter. ItB次元官网网址檚 a good thing B次元官网网址 having studied piano rather than the guitar or the violin, the PM would face limited options as a street busker.

You canB次元官网网址檛 defend these payments. And smart politicians are not even trying. Since the Canadian Taxpayers Federation published its report on MP pensions, weB次元官网网址檝e heard some promising news from both sides of the House of Commons. It started with the Prime MinisterB次元官网网址檚 own words B次元官网网址 Harper said in an interview that the issue of parliamentary pensions B次元官网网址渨ill have to be looked at.B次元官网网址 Then Treasury Board President Tony Clement revealed that he was B次元官网网址渢asked with putting some options forwardB次元官网网址 on MP pensions, saying the government needs B次元官网网址渢o be fair to the taxpayer.B次元官网网址

B次元官网网址淚 think to have any legitimacy on that file, MPs are going to have to lead by example,B次元官网网址 said Alberta Conservative MP Brent Rathgeber, displaying both political savvy and moral fortitude from the government side of the House. Green Party leader Elizabeth May said MP pensions should be reviewed B次元官网网址渋n order to bring them more into line with norms for other Canadians,B次元官网网址 calling it B次元官网网址渢he fair thing to do.B次元官网网址 NDP industry critic Guy Caron said his party is willing to look at proposals to bring the MP pension plan B次元官网网址渕ore in conformity, more realistic in relation to the people they lead.B次元官网网址 And Liberal MP Marc Garneau, the former astronaut, said the CTF report was a B次元官网网址渇air observationB次元官网网址 of the pension landscape.

Canadians have been phoning, writing, and emailing their politicians in huge numbers, letting them know how they feel about platinum-plated MP pensions. With the next federal budget coming soon, taxpayers need to turn up the heat, and make sure the pork-laden MP pension plan is put on the chopping block, front and centre, with a big carving knife close at hand for Mr. Harper. ItB次元官网网址檚 the necessary first step in a long, but ultimately needed, process.

Gregory Thomas is the Federal and Ontario Director, Canadian Taxpayers Federation.

 



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