http://taxpayer.com/issues/federal/f...rm-mp-pensions
Currently retired MPs, once they have reached 6 years service, are entitled to a pension that pays them out $24 for every $1 they put into the program.
Quote:
After just six years of service, MPs are eligible to receive one of the richest pensions in the country, and taxpayers are paying for it. Taxpayers contribute $24.36 for every $1 contributed by an MP into an MP’s pension account.
How is that possible?
Unlike normal pension plans, the MP pension fund is not actually invested into the market. By cabinet order, the fund is simply credited with 10.4% annual interest, courtesy of taxpayers. So generous is the MP Pension Plan that it is not even legal under the Income Tax Act which mandates that no registered pension plan can exceed an accrual rate of 2% of salary for each year worked. (MPs have rigged up two funds to get around the law).
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Is there an easy way out of this ? Probably not.
Here is the Canadian Taxpayers Foundation report on the subject.
http://taxpayer.com/sites/default/fi...Report-WEB.pdf
A guy on QR77 was saying that Gilles Duceppe would collect close to $3 Million in pension if he were to live another 20 years.