Scrap MLA pensions, not teachers: CTF
Posted Jan 19, 2011 05:56:13 AM.
This article is more than 5 years old.
The Canadian Taxpayers Federation is calling on the Nova Scotia government to review the MLA pension plan, calling it an “outrageous expenditure.”
CTF Atlantic Canada director Kevin Lacey says Nova Scotia’s MLA pension plan is unique in Canada and deserves scrutiny – particularly at a time when the province is pushing provincial school boards to reduce expenses by 22 per cent.
Lacey says calculations suggest that for every dollar MLAs contribute to the plan, taxpayers are contributing nearly $7 before interest.
“This is an outrageous expenditure of money, especially given the discussion about cutting teachers and books out of our schools,” said Lacey.
Under the plan, Lacey says some MLAs would make more money if they retired than if they continued their post.
Lacey says it’s time for the Dexter government to review its pension plan, following the lead of nearly every other Canadian province.
“The thing with this pension program is the money is paid straight out of the treasury,” he said. “Everybody’s’ pension plans are typically vested in mutual funds and RRSPs. These guys just pull the money right out of the fund for health and education.”
The CTF makes three suggestions in its document titled Report on Nova Scotia MLA pension, salaries and expenses, dated September 2010:
* Replace the current MLA pension program with an RRSP style system and reduce the taxpayer to MLA contributions from 22:1 to 1:1.
* Create a citizens panel of regular, randomly selected Nova Scotians to examine MLA pay and benefits, rather than relying on the former politicians who’ve been hired to do the last few reports.
* Pass a new law that would ensure any MLA found guilty of a criminal offence related to their job would retroactively lose all eligibility for severance and pension payments.
