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bmdbley'sBro 01-18-2012 03:07 PM

while many canadian's suffer MP's tax payer backed pensions recieve 10.4% by Law!

while many canadian's suffer MP's tax payer backed pensions recieve 10.4% by Law!

Scrap lucrative pension plan for MPs: taxpayers group
18/01/2012 12:26:02 PM
Angela Mulholland

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.

hmm. seems very despotic & criminal to me, but i'm sure some glorious commrad will chime in to correct zee errors of my perverse thinking

ChrisTO 01-20-2012 01:50 AM

is insider trading illegal for our MPs? I hope so unlike US congressman...

that would just be a plum job - wicked pension and full access to information prior to public announce that would impact portfolios a lot!

bmdbley'sBro 01-20-2012 06:02 PM

^ lets hope..

but then theres also:


EI financing agency spends millions doing nothing

By Greg Weston, National Affairs Specialist CBC News Posted: Jan 19, 2012

A federal agency created by the Harper government with great political fanfare in 2008 is costing millions of dollars to achieve pretty much nothing.

The Canada Employment Insurance Financing Board has just about everything a budding government agency could want.

So far, it has spent over $3.3 million for new offices, computers and furniture, well-paid executives and staff, travel budgets, expense accounts, board meetings, and lots of pricey consultants.

All that's missing is a reason for it to exist at all.

The Conservative government set up the agency ostensibly to perform three main functions.

The first was to set the annual employment insurance contribution rates that determine how much Canadian workers and employers have to pay into the EI fund in a given year.

But in all three years the board has been in existence, the Harper government has simply capped EI rates to spare Canadian workers from potentially huge premium increases.

As a result, the rate-setting agency has yet to set a single rate.

The board's other main responsibility is to invest any surplus EI funds.

That has never happened, either.

Since the government started capping EI contribution rates, the employment insurance program has been running a deficit now totalling almost $9 billion.

There has simply never been a surplus dime for the board to invest.

Finally, the agency is charged with managing a $2 billion EI contingency fund the government promised to set up, but never did.

Not overwhelmed
In short, the board has no rates to set, no surplus to invest, no contingency fund to manage, and little chance any of that will change in the near future.

organization isn't exactly overwhelmed with work.

"We haven't had to do nearly as much as our original mandate intended us to do," Brown said in an interview.

"So we've slowed down on some of our development activities until it is clear that we are going to be able to do some of the things that we will be asked in the future."

The head of the Canadian Taxpayers' Federation is incensed.

"I think average taxpayers want to know what these people are doing with their time," Gregory Thomas tells CBC News.

"I think people need to call their MPs and let them know that they are tired of their money being wasted."

Raises for everyone
Mostly, the little agency that doesn't seems to have been keeping busy spending millions of dollars turning itself into a thoroughly modern bureaucracy.

Its published budget for the current year includes giving everyone raises, and moving the entire agency into new offices — all at an expected cost of $1.8 million.

the Rest:

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