Ousted politicians in line for golden pensions

The 180 MPs who were either defeated or didn’t seek re-election in the election will collect $5.3 million in annual pension payments, estimates the Canadian Taxpayers Federation.

In total, pensions will be worth a cumulative $209 million by the time the MPs reach age 90. In addition, another $12.8 million in severance cheques will be issued to former MPs.

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“Losing an election can be tough, but most MPs will have a soft financial landing,” said CTF Federal Director Aaron Wudrick. “The good news is that thanks to the hard-fought pension reforms that take effect on January 1, 2016, taxpayers will not have to shoulder as much of the burden in the future.”

For MPs who retired or were defeated on Monday, taxpayers contributed $17 for every $1 put into the plan by an MP towards their pension. After January 1, 2016, the ratio will gradually shift to a ratio of $1.60 in taxpayer contributions for every $1 put in by an MP or Senator.

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Wudrick noted that eight former MPs will gather more than $100,000 a year in pension income, including outgoing Conservative cabinet ministers John Duncan ($132,394), Peter MacKay ($117,746) and Bernard Valcourt ($116,987). In terms of lifetime estimated benefits to age 90, 21 MPs are projected to collect more than $3 million, including MacKay ($5.9 million), Liberal Gerry Byrne ($5.2 million) and Conservative Rob Anders ($4.7 million).

The pension and severance calculations for individual MPs are available here.

Read: Election 2015: The parties on pensions

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.