Why does the taxpayer kick in $23.00 for every $1.00 an MP pays into their pension? Politicians!



The Canadian Taxpayers Federation says MPs have one of the cushiest pension fund programs in Canada and it's time to shut it down.

The federation says with belts being tightened everywhere, it's time for a more modest system in which the government matches MP contributions to the plan on a dollar-for-dollar basis.

As it currently stands, taxpayers kick in $23.30 for every $1 an MP contributes, the federation says.

Officially, taxpayers contribute $5.80 for every $1 that MPs contribute, but the taxpayer group says it's actually much higher than that, because the government adds "interest" into the MP pension accounts at a rate of 10.4 per cent per year.

MP pension funds are not invested in the market, like other pension funds. Instead, the "interest" rate is set by MPs and senators themselves.

"These 'interest' earnings are in fact a massive top-up from taxpayers," the group says.

What's more, the 10.4 per cent interest rate, which is guaranteed in law, is outrageously high, says the group's federal director, Gregory Thomas.

"Even during the market meltdown of 2008 -- when the Canada Pension Plan lost 18.6 per cent of its value, the Ontario Teachers' Pension Plan lost 18 per cent, the Quebec Pension Plan lost 25 per cent and the S&P/TSX total return index lost 33 per cent�the MP pension plan returned 10.4 per cent, just as it has every other year," Thomas said in a news release.

"I'd bet there's a few million Canadians who would love to see a government-guaranteed 10.4 per cent annual return on their RRSPs."

The result is that taxpayers contribute $248,668 each year to each MP's pension fund. That's more than a MP's base salary, which stands at $157,000.

As well, MPs become eligible for the MP pension plan after only six years of service and can start collecting at age 55.

"Teachers, bus drivers, farmers, cops, small business owners, would all love to get a pension at age 55 after only six years of service," said Thomas.

During those six years, MPs need only contribute $10,900 a year to get the minimum backbencher pension. The group estimates it would take a regular Canadian nearly 30 years to save as much as a backbench MP would get in their eventual pension payout after just six years.

The group wants MPs to shut down the current pension scheme, and join the new Pooled Registered Pension Plan (PRPP).

They also want to see taxpayer contributions capped at a dollar-to-dollar level.

As well, they want to ensure that convicted fraudsters are barred from collecting parliamentary pension benefits.

They should also have to work 30 years before pension like everyone else, except teachers.

no pensions for fraudsters??

there wouldn't be a single cent paid out!

excellent!

I was pleasantly surprised to learn while working last year's taxes, which include US, Canada and Kazakhstan elements, with the company supplied preparer that I will be able to collect Canadian "Social Security" (forgot what you folks call it up there) earned during the five years I lived and worked in Alberta when I retire. Sweet deal.

I've taught full-time for 32 years - I've never missed any time since university - I can't retire with full benefits - till next year.

I have the same view for many of our US military folks. Seems there should be some sort of dividing line bewteen those who have fought in battle and those who haven't. I have a lot of neighbors that have never seen battle and have retired quite well compared to many folk.

Start with the Federal MPs pensions,then look at the pensions for Crown Corporation Execs,(CBC etc.)then look at the pensions for Provincial Premiers and MLAs.You can follow it right down to the Municipal level.And we wonder where our tax dollars go. Monashee

Im obviously not a Canadian, but I find it ironic that you, BCBrian, admittedly burn red diesel (tax free) in your truck on Canadian highways, therefore you do not pay you fuel taxes like law abiding citizens do. You are nothing more than a tax thief, crook, and fraud. All the while talking about Canadian rip-offs.

Wow! Had I worked under that program, I would have put about half of my salary into the pension fund.

You really are a first-class pr*ck aren't you JGRaider?

It's perfectly LEGAL for me to drive my farm truck on the highways of BC.

Look it up! Oh hell, there is NO CHANCE you could accomplish that!

But why would I expect a dumb redneck like you to worry about what the law is up here? I doubt you know much about the laws in your own state - let alone a foreign country. Can you play Dueling Banjos - the first time you hear it? Do you use family reunions for dates?

You'd rather accuse people of being cheats, liars, and tax frauds - without any foundation - just like I'd expect from a dumb no-class redneck.

I understand how people with low self-esteem try and up their own self-importance by attacking others (even when they have NO CLUE) about what they are talking about.

Now - why don't you see if you can look up - and post - which one of BC`s laws I`m breaking - I dare you!

I knew you couldn't!

Epic fail!

Now Brian, farm plates on a truck only mean you had to prove actual use as a farm vehicle for a registered farm. You know how easy it is to get our governments to OK red fuel usage.

It is small compensation indeed. By the way thanks for your years of teaching.

I am a municipal employee now rather than provincial and if I retire before 65 years I loose 5% per year I am short of 65. When a provincial medic I could have left at 60 with a full pension, but in 2001 the province made ambulance a municipal responsibility and so the pensions were lost. I will probably go at60 since the job has really ruined my back, shoulders and knees.

Tax breaks for working professionals do not exist in Canada, and contrary to popular belief, pensions are mostly employee funded. Pension contributions submitted on employees behalf are negotiated as a part of the collective agreements and although paid by taxation, are actually part of the wage agreements. More pension contribution means less wages. It is not a free ride for us. Not so with polititions.

Randy

Down here in Oregon police and fire fighters have an excellent retirement package due to their time in hazardous duty. And yes, the politicians put themselves under the same umbrella.

And on the farm plate deal. Half the rigs in our town are carrying farm plates. If one is going to Nebraska to buy a bull, it's still farm business. Most folks though don't pack enough fuel to get there and back.

BC Brian go ahead and burn the red diesel and the government can you know what. I get so irate around tax time and the BS calls from Revenue Canada. They think that my money is their money???
I worked for it, them lazy asses are on the phone hassling people all day and I think they really enjoy their jobs. Threathening people with taking away their houses,jail time, and other bully tactics. If everyone stopped paying taxes them phone jockeys would have to find a real job. Bagging groceries at Safeway sounds about their mental and physical capacity.

And people wonder why they don't put a stop to all the Mis-spent tax dollars on reserves? It's so we are distracted from what is happening on the mainstream governance tables.

I know I shouldn't have got so nasty - but he keeps posting this stuff - without a clue about what he's talking about.

But this JGRaider fellow, keeps slandering me as if I was doing something wrong by driving my farm truck on the highway while burning pink diesel. The truck has farm plates - we get the diesel delivered to our farm - and every receipt is kept, recorded and reported.

Of course, I use every benefit the tax laws allow - because it would be stupid to do otherwise.

Part of the reason we bought the property we own, was the calculations we made about how we could profit from the farm status it had the potential to bring us.

Most everyone else (other than the above mentioned fine fellow ) are capable of figuring this out.

I guess old JGRaider will have to keep on cipherin' with his abacus till he gets it all figured out.

I actually have mixed feelings about the MP pension plan.

Most of the MP's I have known, (maybe a dozen) all took huge paycuts when they ran for office, the pay of an MP is $157m, most lawyers and successful business people who run and are often very effective MP's give huge chunks of their major earning years.

Many have to effectively start over when they leave office.

I think the severance is generous, but not ridiculous, the pension is the same.

The program is designed to help recruit the best and brightest to public office, it doesn't always work out the way but often it does. Many if not most of our effective MP's would have been far better off financially if they didn't take the risk and have all the stress of 80 hour work weeks to run for office. Any plumber who works the same number of hours as the average MP would actually make more money. The two I now the best were partners in very successful law firms, they had to sell their partnerships back, when they left office they had to start over in their law practice and they made far less money as MP's.

Clearly this doesn't apply to the waitress from Kingston who was elected in Quebec, but our MP's work ridiculous hours, perform a vital public service and should be compensated accordingly.

I'm still waiting for feds to return the 33 Billion that they stole from the CDN Forces/RCMP pension plan. Thieving bastards!

Our plan was 100 privately funded. NO taxpayer dollars went into it. A few years ago, the govt smelled that money, invested properly by a private concern, compounding interest, and seized it all. Now I read that they want to cut back on federal employee pensions because the fund is not sustainable. The biggest mistake was to allow the feds ANY say in its management. In my years on the planet, I have never seen any evidence to the contrary. The govt will take or steal whatever they can.

George Harrison wrote this:

Taxman

Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.

IF YOU CAN, START YOUR OWN PRIVATE PENSION PLAN!!

1. I paid into UI for 22 years, but was not allowed to collect.

2. I have paid the max benefit to CPP since I was 18, but because I also paid into a private military pension plan, an amount equivalent to my CPP will be clawed back at age 65.

The Liberals did all this to me. Ask me what I would do to every stinking one of them, given the chance!

OK what would you do to them if you were given the chance?!

Wave my magic wand and turn them all into fertilizer.

Teachers work 30 years at least to get an unreduced pension. Age plus years of service must equal 90 in order to receive an unreduced pension (2% of your best 5 years salary for every complete year of service to a maximum of 70% or 35 years service). Anything less is reduced significantly.

And that pension is funded by the individual by deduction and by equal payment of school board as a part of the wage pacage. There are no free rides with pensions at any but political or CEO levels

Welcome to the fire, didn't notice your post count prior, I take it your in the teaching career or spouse is?

Canadian politicians, like their ilk everywhere, are in it for personal gain and glory. And if you think for one second they give a damn about your average schmuck you are sadly mistaken. While politicians at no time have been saints, their moral compass these days is a lot further off the mark than in years past.

+1. Where's Preston Manning when you need him?

Or his Dad, Ernest C Manning. Now there was a man mighty in the word of God.

Dang - I got to this thread about 10 days too late obviously. I saw the title and thought it was another Korth/Leupold rant. I was gonna join in on the song.

Never too late, things move slowly in the Canada section.

Yes, and often people post naked.

I'd heard ol' Gord had fallen on hard times, but geez.....

How many politicians to do you know personally?

I know several and most of them are incredibly hard workers who put in ridiculous hours, and serve because it satisfies them. All of the ones I know took big pay cuts and made huge sacrifices to their quality of life to do it.

Thanks, it's good to be here. Yes, I am a teacher and have been for 21 years (probably the only reason I know the math on that pension). It's a good career if you just close the class room door and focus on the kids.