|
© Copyright 2000 Rogers Media. The following article first appeared in the October 2000 edition of
BENEFITS CANADA magazine.
e-Poll
Are the benefits and pensions given to Canadian politicians overly generous?
Compensation of Canadian politicians is a hot topic judging by this month's responses to E-poll, which
asked whether or not the benefits and pensions politicians receive are overly generous. Readers were
overwhelmingly positive, with 79% voting yes. Only 13% say the pensions and benefits of Canadian
politicians are not too generous, while 8% say they don't know.
With recent changes to compensation programs for federal members of parliament as well as provincial
politicians in some jurisdictions, the debate over politicians' perks is likely to heat up.
The Canadian Taxpayers Federation (CTF), for one, believes the pension plan federal politicians enjoy is a
sweet deal. "The accrual rate [available for federal members of parliament] is twice the legal limit that
would be available to you or I in an employer-sponsored plan under the Income Tax Act," says Walter
Robinson, federal director, with CTF in Ottawa. Robinson's group advocates a defined contribution plan or
group registered retirement savings plan for politicians. But not everyone agrees.
"I think if you compare politicians' pensions to a guy working on the production line at a steel company
you'll find they [politicians' plans] are clearly richer," says Mel Norton, senior vice-president with Aon
Consulting in Toronto. "But if you compare it to the kinds of things that are available in the right set of
circumstances for executives, they are not inordinate. There are lots of plans around that are as rich or
richer."
Moreover, Norton believes, if good pensions attract good people to the political scene, then that's a good
thing for the country. "If what it takes to have the right people in elected office is a nice pension at
the end of an extended tenure, I'd be much happier to have the right person in office than the wrong
person."
|
News
News
