Stephen Harper tells Tory MPs that generous pensions will be trimmed

[Locutus]

OTTAWA—Prime Minister Stephen Harper has put his Conservative caucus on notice the government is about to begin gradually chipping away at the generous pension plans enjoyed by Members of Parliament.

Pensions for MPs, which far exceed what most people collect in retirement, have become a political liability when Harper is asking Canadians to wait longer for Old Age Security eligibility in the future and pensions for federal employees are being scaled back.

“They need to lead by example,” said Gregory Thomas, federal director of the Canadian Taxpayers Federation. “There’s no doubt that they plan some pretty serious tinkering” with the current system, he said.

The new MPs’ pension arrangements are still being discussed with Harper’s 163-member caucus, some of whom are concerned about losing future entitlements, according to Tory insiders. But changes to retirement benefits are expected within a few weeks when a second budget implementation bill comes before Parliament.

To enlist the support of Conservative MPs, the new plan is expected to be phased in, meaning today’s MPs will not lose any of the future pay-outs that have accrued so far.


more


Stephen Harper tells Tory MPs that generous pensions will be trimmed - thestar.com

 

[JLM]

OTTAWA—Prime Minister Stephen Harper has put his Conservative caucus on notice the government is about to begin gradually chipping away at the generous pension plans enjoyed by Members of Parliament.

Pensions for MPs, which far exceed what most people collect in retirement, have become a political liability when Harper is asking Canadians to wait longer for Old Age Security eligibility in the future and pensions for federal employees are being scaled back.

“They need to lead by example,” said Gregory Thomas, federal director of the Canadian Taxpayers Federation. “There’s no doubt that they plan some pretty serious tinkering” with the current system, he said.

The new MPs’ pension arrangements are still being discussed with Harper’s 163-member caucus, some of whom are concerned about losing future entitlements, according to Tory insiders. But changes to retirement benefits are expected within a few weeks when a second budget implementation bill comes before Parliament.

To enlist the support of Conservative MPs, the new plan is expected to be phased in, meaning today’s MPs will not lose any of the future pay-outs that have accrued so far.


more


Stephen Harper tells Tory MPs that generous pensions will be trimmed - thestar.com

I love it!

 

[SLM]

I'll believe it when I see it. Until then, it's just talk, talk, talk. Sounds great, means nothing.

 

[tay]

Well that would be a microscopic start. I wonder if they will come up with a scheme similar to what the Harris Cons did in Ontario?

And I will even use a fox north link ............


Taxpayers gleeful the Conservatives appear ready to scramble MPs' golden nest eggs may want to pay heed to this cautionary tale.

When former Ontario premier Mike Harris phased out lavish MPP pensions in 1996, he ended up with egg on his face by including a compensation deal that dinged taxpayers to the tune of $109 million - $52 million more than what was in the MPP retirement fund at the time.

Five MPPs were made overnight millionaires when the pensions were dismantled and replaced by RRSPs.

Sixty-one MPPs are estimated to have received the lump-sum "present value" payouts, which were placed into retirement instruments that could be accessed at age 55.

Harris himself netted about an $800,000 settlement, as did current Conservative senator and former MPP Bob Runciman.

Runciman was among the politicians calling for the cash settlements to be made public in 1996 when reporters caught hold of the story, but full details of the payments were never revealed.

Interim Liberal leader Bob Rae - and former Ontario premier - was among those who received an estimated $1 million compensation package.

Rae was asked Wednesday whether he was concerned the same type of buyout bonanza could happen at the federal level if the Conservatives make good on hints that MP pensions are under scrutiny.

He argued political pensions should be competitive, but also "seen by everybody to be fair and reasonable."

Rae underscored that the Harris government was responsible for the sweetheart compensation package. Rae left Queen's Park in early 1996.

"Nobody expects or wants a windfall," Rae said. "It does seem like a crazy situation - I fully recognize it." Treasury Board President Tony Clement and Finance Minister Jim Flaherty - who would shepherd in pension reforms, if any - were also both MPPs under Harris at the time, but being newly elected, didn't qualify for compensation.



http://www.google.ca/url?sa=t&rct=j&q=harris%20tories%20change%20mpp%20pension&source=web&cd=2&cad=rja&ved=0CDYQFjAB&url=http%3A%2F%2Fm.torontosun.com%2F2012%2F01%2F25%2Fmp-pension-reform-pitfalls&ei=tqtZUMHSCOjo0QHk3YCIBw&usg=AFQjCNEX6aUoQcTKEA4BulO7Lkx75cY69Q

 

[Machjo]

Then one way to avoid the compensation dilemma, jsut have the new law apply only to new MPs.

 

[relic]

The way el harpo runs things,nobody will be able to find out the details anyway.

 

[taxslave]

About time. I think machjo is right. Just make it apply to new MPs and hope the current crop die off at an early age although a buyout could still be cheaper in the long run than phasing it in.

 

[55Mercury]

yay Stevo.

but I can't help but see this as a prelude to cutting back my pension.

arrgh

 

[taxslave]

AN even better solution would be to simply not reelect any MP to a second term. Then they do not qualify for pension. We also need to do away with severance pay for government retirees.

 

[Fletch]

Only the Liberals and NDP dont get to see a second term... Its evolution. Im OK with my Tory MP remaining for more than 1 but Steve Harpers latest step in the pension plan is great news...

AN even better solution would be to simply not reelect any MP to a second term. Then they do not qualify for pension. We also need to do away with severance pay for government retirees.

 

[Machjo]

AN even better solution would be to simply not reelect any MP to a second term. Then they do not qualify for pension. We also need to do away with severance pay for government retirees.

What if the MP is worth reelecting?

 

[JLM]

What if the MP is worth reelecting?

Well an exception could be made but should definitely be limited to one in a thousand!

 

[L Gilbert]

I'll believe it when I see it. Until then, it's just talk, talk, talk. Sounds great, means nothing.

Yep.

What if the MP is worth reelecting?

lol You're joking, right? Are there any?

 

[Machjo]

Yep.

lol You're joking, right? Are there any?

I'm just opposed to term limits in principle since in principle if the people want to reelect a person they should be free to do so.

 

[L Gilbert]

I'm just opposed to term limits in principle since in principle if the people want to reelect a person they should be free to do so.

Ah, then someone who alienates the western provinces can keep getting in and alienating all they want to just because the majority of Canada's population is back east. Nice. Turdeau - 15 years of primping the east at the expense of western Canada and the Maritimes.

 

[darkbeaver]

Tighten your belts kiddies cuz this is big brother being seen taking the medicine that will taste like **** when the spoon gets to you, and you will swallow.

 

[Machjo]

Ah, then someone who alienates the western provinces can keep getting in and alienating all they want to just because the majority of Canada's population is back east. Nice. Turdeau - 15 years of primping the east at the expense of western Canada and the Maritimes.

If that's their mood, then they'll just vote in someone similar or worse. Better the devil you know...

 

[JLM]

Ah, then someone who alienates the western provinces can keep getting in and alienating all they want to just because the majority of Canada's population is back east. Nice. Turdeau - 15 years of primping the east at the expense of western Canada and the Maritimes.

That will only work for a little while, the centre of population is moving west every year!

 

[WLDB]

I'll believe it when I see it. Until then, it's just talk, talk, talk. Sounds great, means nothing.

He did give MPs a pay cut about 2 years ago. No reason not to believe he'd do something like this with pensions. I think its a good move. They get way too much in their pensions and dont have to work very long to get it.

That will only work for a little while, the centre of population is moving west every year!

True but they wont have the same hangups as people who have lived there for decades. Most will have little to no knowledge of NEP and as a result wont whine about it for decades. It was a major screw up but it was a generation ago.

lol You're joking, right? Are there any?

There are a few I like. There's bound to be a few given there's a total of 308.

The cynics who say all politicians are the same/bad only have themselves to blame. Its the people who elect them. They didnt appoint themselves.

 

[JLM]

The cynics who say all politicians are the same/bad only have themselves to blame. Its the people who elect them. They didnt appoint themselves.

True but in each riding you may have 4 or 5 candidates to pick from. What are the chances of one being good? I generally vote just out of general principles, and try for the one where the stench is the mildest! Even the most well meaning and basically honest one finds that once he/she gets to Ottawa they are TOLD what the agenda is!